Ford Credit Auto Receivables Two LLC Ford Credit Auto Owner Trust 2009-C Underwriting Agreement
Exhibit
1.1
Execution
Copy
Ford
Credit Auto Receivables Two LLC
July 7,
2009
Xxxxxx
Xxxxxxx & Co. Incorporated
Credit
Suisse Securities (USA) LLC
each as
an Underwriter
and as a
Representative
of the
other Underwriters named in
the Terms
Annex
Ladies
and Gentlemen:
1. Introduction. Ford
Credit Auto Receivables Two LLC, a Delaware limited liability company (the
"Depositor"),
formed under the Amended and Restated Certificate of Formation of Ford Credit
Auto Receivables Two LLC (such certificate, the "Certificate of
Formation") and operating pursuant to an Amended and Restated Limited
Liability Company Agreement, dated as of March 1, 2001 (the
"Limited Liability
Company Agreement"), executed by Ford Motor Credit Company LLC, a
Delaware limited liability company ("Ford Credit"), as
sole member, proposes to sell the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes (the "Publicly
Registered Notes") described in
the Terms Annex (the "Terms Annex") that is
attached as Annex A and incorporated into and made part of this agreement (this
agreement including the Terms Annex, this "Agreement"). The
Publicly Registered Notes will be registered with the Securities and Exchange
Commission (the "Commission") and will
be sold to the applicable underwriters listed in the Terms Annex through the
representatives (the "Representatives")
signing this Agreement on behalf of themselves and such underwriters (the
Representatives and the other underwriters of the Publicly Registered Notes, the
"Underwriters"). Other
capitalized terms used and not defined in this Agreement will have the meanings
given them in Appendix A to the Sale and Servicing Agreement (defined
below). The rules of usage specified in the Sale and Servicing
Agreement will apply to this Agreement.
Each of
the Representatives is a financial institution appearing on the Federal Reserve
Bank of New York's list of Primary Government Securities Dealers Reporting to
the Government Securities Dealers Statistics Unit of the Federal Reserve Bank of
New York (a "Primary
Dealer"), and may be a party to that certain Master Loan and Security
Agreement among the Federal Reserve Bank of New York (the "FRBNY"), as Lender,
various Primary Dealers party thereto, The Bank of New York Mellon, as
Administrator, and The Bank of New York Mellon, as Custodian (the "MLSA"), in connection
with the Term Asset-Backed Securities Loan Facility ("TALF"). It
is expressly intended by the parties hereto that all rights, benefits and
remedies of the Representatives, as Underwriters, under this Agreement will be
for the benefit of, and will be enforceable by, each Representative not only in
such capacity but also in its capacity as a Primary Dealer and as a signatory to
the MLSA.
The
Publicly Registered Notes will be issued by a Delaware statutory trust (the
"Trust")
identified in the Terms Annex and established under a trust agreement (the
"Trust
Agreement") between the Depositor and an owner trustee (the "Owner
Trustee"). Simultaneously with the issuance and sale of the
Publicly Registered Notes as contemplated in this Agreement, the Trust will
issue the Class A-1 Notes, (the "Class A-1 Notes" and,
together with the Publicly Registered Notes, the "Notes"). The
Class A-1 Notes will be sold pursuant to a note purchase agreement (the "Class A-1 Note Purchase
Agreement"). Each of the Notes will be issued pursuant to an
indenture (the "Indenture") between
the Trust and an indenture trustee (the "Indenture Trustee")
and will be secured by a pool of retail installment sale contracts for new and
used cars and light trucks (the "Receivables") and
certain other property of the Trust.
Ford
Credit will sell the Receivables to the Depositor pursuant to a purchase
agreement (the "Purchase Agreement")
and the Depositor will sell the Receivables to the Trust pursuant to a sale and
servicing agreement (the "Sale and Servicing
Agreement"). Ford Credit (in such capacity, the "Servicer") will
service the Receivables on behalf of the Trust pursuant to the Sale and
Servicing Agreement. Ford Credit will also act as administrator for
the Trust pursuant to an administration agreement (the "Administration
Agreement") among Ford Credit, the Trust and the Indenture
Trustee.
In order
to perfect the security interest of the Indenture Trustee in certain accounts,
the Trust, the Indenture Trustee and the financial institution acting as the
securities intermediary will enter into an account control agreement (the "Control
Agreement").
The Trust
Agreement, the Purchase Agreement, the Sale and Servicing Agreement, the
Indenture, the Administration Agreement and the Control Agreement are
collectively referred to as the "Basic
Documents." The Basic Documents and this Agreement are
collectively referred to as the "Transaction
Documents."
The
Depositor has prepared and filed with the Commission under the Securities Act of
1933, as amended (the "Securities Act"), and
the rules and regulations of the Commission under the Securities Act (the "Rules and
Regulations"), a registration statement on Form S-3 (having the
registration number stated in the Terms Annex), including a form of prospectus
and all amendments that are required as of the date of this Agreement relating
to the Publicly Registered Notes and the offering of notes from time to time in
accordance with Rule 415 under the Securities Act. The registration
statement, as amended, has been declared effective by the
Commission. Such registration statement, as amended at the time of
effectiveness, including all material incorporated by reference therein, is
referred to in this Agreement as the "Registration
Statement." The Depositor also has filed with, or will file
with, the Commission pursuant to Rule 424(b) ("Rule 424(b)") under
the Securities Act a prospectus supplement relating to the Publicly Registered
Notes (the "Prospectus
Supplement"). The prospectus relating to the Publicly
Registered Notes in the form first required to be filed to satisfy the condition
set forth in Rule 172(c) under the Securities Act is referred to as the "Base Prospectus," and
the Base Prospectus as supplemented by the Prospectus Supplement required to be
filed to satisfy the condition set forth in Rule 172(c) under the Securities Act
is referred to as the "Prospectus." Any
reference in this Agreement to the Registration Statement, any preliminary
prospectus used in connection with the offering of the Publicly Registered Notes
described in the Terms Annex (the "Preliminary
Prospectus") or the Prospectus will be deemed to refer to and include any
exhibits thereto and any documents incorporated by reference therein, as of the
effective date of the Registration Statement or the date of such Preliminary
Prospectus or Prospectus, as the case may be. The Depositor has
included certain static pool information (the "Static Pool
Information") relating to
2
prior
securitized pools in Annex A to the Preliminary Prospectus Supplement and the
Prospectus Supplement.
At or
prior to the time that the Representatives first entered into "contracts of
sale" (within the meaning of Rule 159 under the Securities Act, the "Contracts of Sale")
with investors in Publicly Registered Notes, which time will be specified in the
Terms Annex (such time, the "Time of Sale"), the
Depositor had prepared the Preliminary Prospectus and the information (including
any "free-writing prospectus," as defined pursuant to Rule 405 under the
Securities Act (a "Free Writing
Prospectus")) listed in the Terms Annex under "Time of Sale Information"
(collectively, the "Time of Sale
Information"). If, subsequent to the initial Time of Sale, the
Depositor and the Representatives determine that such information included an
untrue statement of material fact or omitted to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading and the Representatives advise the
Depositor that investors in the Publicly Registered Notes have elected to
terminate their initial Contracts of Sale and enter into new Contracts of Sale,
then the "Time of
Sale" will refer to the time of entry into the first new Contract of Sale
and the "Time of Sale
Information" will refer to the information available to purchasers at the
time of entry (prior to the Closing Date) into the first new Contract of Sale,
including any information that corrects such material misstatements or omissions
(such new information, the "Corrective
Information") and the Terms Annex will be deemed to be amended to include
such Corrective Information in the Time of Sale
Information. Notwithstanding the foregoing, for the purposes of
Section 7 hereof, in the event that an investor elects not to terminate its
initial Contract of Sale and enter into a new Contract of Sale, "Time of Sale" will
refer to the time of entry into such initial Contract of Sale and "Time of Sale
Information" with respect to Publicly Registered Notes to be purchased by
such investor will refer to information available to such purchaser at the time
of entry into such initial Contract of Sale.
2. Representations and
Warranties of the Depositor. The Depositor represents and
warrants to and agrees with the Underwriters that, as of the date of this
Agreement:
(a) Registration Statement and
Prospectus. The Registration Statement has been declared
effective by the Commission under the Securities Act; no stop order suspending
the effectiveness of the Registration Statement has been issued by the
Commission and no proceeding for that purpose has been instituted or, to the
knowledge of the Depositor, threatened by the Commission, and the Registration
Statement and the Prospectus and any amendment thereto, at the time the
Registration Statement became effective and as of the Time of Sale complied, and
as of the date of the Prospectus Supplement will comply, in all material
respects with the Securities Act and the Registration Statement, did not, at the
time the Registration Statement became effective or as of the Time of Sale, and
will not, on the Closing Date, contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; and as of the date of the Prospectus and
any amendment or supplement thereto and on the date of this Agreement, the
Prospectus will not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that the Depositor
makes no representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with information relating to any
Underwriter furnished to Ford Credit or the Depositor in writing by such
Underwriter through the Representatives expressly for use in the Registration
Statement and the Prospectus and any amendment or supplement thereto; and the
conditions to the use by the Depositor of a registration statement on Form S-3
under the Securities Act, as set forth in the General Instructions to
Form
3
S-3, have
been satisfied with respect to the Registration Statement and the
Prospectus. When the Indenture is executed by all the parties to the
Indenture, it will conform in all material respects with the Trust Indenture Act
of 1939, as amended (the "TIA"), and at all
times thereafter will be duly qualified under the TIA.
(b) Time of Sale
Information. The Time of Sale Information, at the Time of Sale
did not, and at the Closing Date will not, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided
that the Depositor makes no representation and warranty with respect to
any statements or omissions made in reliance upon and in conformity with
information furnished to the Depositor by an Underwriter through the
Representatives expressly for use in such Time of Sale Information; provided that if subsequent
to the Time of Sale but prior to or on the Closing Date the Depositor and the
Representatives determine that the Time of Sale Information included an untrue
statement of material fact or omitted to state a material fact necessary to make
the statements therein in light of the circumstances under which they were made
not misleading, for purposes of this paragraph, Time of Sale Information will
include any Corrective Information provided to the Representatives or
Underwriters by the Depositor in accordance with Section 5(c).
(c) Trust Free Writing
Prospectus. Other than the Preliminary Prospectus and the
Prospectus, the Depositor (including its agents and representatives other than
the Underwriters in their capacity as such) has not prepared or authorized, and
will not prepare or authorize any "written communication" (as defined in Rule
405 under the Securities Act) that constitutes an offer to sell or solicitation
of an offer to buy the Publicly Registered Notes other than the documents, if
any, listed as a Trust Free Writing Prospectus (each, a "Trust Free Writing
Prospectus") under "Time of Sale Information" in the Terms
Annex. Each such Trust Free Writing Prospectus complied in all
material respects with the Securities Act, has been filed in accordance with
Section 8 (to the extent required by Rule 433 under the Securities Act) and,
when taken together with the Preliminary Prospectus, such Trust Free Writing
Prospectus, did not at the Time of Sale, and at the Closing Date will not,
contain any untrue statements of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that the Depositor
makes no representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with information furnished to the
Depositor by an Underwriter through the Representatives expressly for use in
such Trust Free Writing Prospectus.
(d) Documents Incorporated by
Reference. The documents incorporated by reference in the
Prospectus, when they were filed with the Commission, conformed in all material
respects to the requirements of the Securities Exchange Act of 1934, as amended,
and the rules and regulations thereunder (collectively, the "Exchange Act"); and
any further documents so filed and incorporated by reference in the Prospectus,
when such documents are filed with the Commission, will conform in all material
respects to the requirements of the Exchange Act and the rules and regulations
thereunder.
(e) Organization and
Qualification. The Depositor is duly organized and validly
existing as a limited liability company in good standing under the laws of the
State of Delaware. The Depositor is qualified as a foreign limited
liability company in good standing and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of its properties
or the conduct of its activities requires such qualification, license or
approval, unless the failure to obtain such qualifications, licenses or
approvals would not
4
reasonably
be expected to have a material adverse effect on the Depositor's ability to
perform its obligations under the Transaction Documents to which it is a
party.
(f) No Conflicts and No
Violation. The consummation of the transactions contemplated
by the Transaction Documents to which the Depositor is a party and the
fulfillment of the terms of the Transaction Documents to which the Depositor is
a party will not (i) conflict with or result in a breach of the terms or
provisions of, or constitute a default under any indenture, mortgage, deed of
trust, loan agreement, guarantee or similar agreement or instrument under which
the Depositor is a debtor or guarantor, (ii) result in the creation or
imposition of any lien, charge or encumbrance upon any of the properties or
assets of the Depositor pursuant to the terms of any such indenture, mortgage,
deed of trust, loan agreement, guarantee or similar agreement or instrument
(other than the lien pursuant to the Sale and Servicing Agreement), (iii)
violate the Certificate of Formation or Limited Liability Company Agreement, or
(iv) violate any law or, to the Depositor's knowledge, any order, rule or
regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Depositor or its properties, in each case which
conflict, breach, default, lien, or violation would reasonably be expected to
have a material adverse effect on the Depositor's ability to perform its
obligations under the Transaction Documents to which it is a party.
(g) Power, Authorization and
Enforceability. The Depositor has the power and authority to
execute, deliver and perform the terms of each of the Transaction Documents to
which it is a party. The Depositor has authorized the execution,
delivery and performance of the terms of this Agreement and on the Closing Date,
the other Transaction Documents to which the Depositor will be a party will have
been duly authorized, executed and delivered by the Depositor. Each
of the Transaction Documents to which the Depositor will be a party is the
legal, valid and binding obligation of the Depositor enforceable against the
Depositor, except as may be limited by insolvency, bankruptcy, reorganization or
other laws relating to the enforcement of creditors' rights generally or by
general equitable principles.
(h) Conformity of Transaction
Documents. The Transaction Documents will conform to their
descriptions in the Prospectus in all material respects.
(i) Enforceability of
Notes. On the Closing Date, the Publicly Registered Notes will
have been duly executed, issued and delivered, and when authenticated by the
Indenture Trustee and paid for by the Underwriters in accordance with this
Agreement, will constitute valid and binding obligations of the Trust entitled
to the benefits provided by the Indenture.
(j) Schedule of
Receivables. The Schedule of Receivables to be delivered by
Ford Credit as sponsor under the Purchase Agreement will be true and correct in
all material respects as of the date specified in the Schedule of
Receivables.
(k) Representations and Warranties in
the Basic Documents. The representations and warranties of the
Depositor in the Basic Documents to which it will be a party will be true and
correct in all material respects as of the date specified.
(l) Ineligible
Issuer. The Depositor is not, and on the date on which the
first bona fide offer of the Publicly Registered Notes was made was not, an
"ineligible issuer," as defined in Rule 405 under the Securities
Act.
5
(m) Static Pool
Information. The Static Pool Information will be true and
correct in all material respects as of the date of the Preliminary Prospectus
and as of the date of the Prospectus.
(n) Investment Company
Act. Neither the Depositor nor the Trust is, or will, after
giving effect to the issuance and sale of the Notes hereunder, be, required to
be registered as an "investment company" under the Investment Company Act of 1940, as
amended (the "Investment
Company Act").
(o) TALF
Information. The Notes constitute "eligible collateral" under
TALF. The Notes and the Receivables satisfy all applicable criteria
for securities relating to "prime retail auto loans" under TALF, and the Trust
and Ford Credit, as Sponsor, have satisfied, or by the Closing Date will have
satisfied, all applicable requirements under TALF. The Preliminary
Prospectus contains, and the Prospectus will contain, all applicable information
required to be included therein under TALF.
3. Purchase, Sale and Delivery
of the Notes. On the Closing Date, on the basis of the
representations, warranties and agreements contained in this Agreement, but
subject to the terms and conditions set forth in this Agreement, the Depositor
agrees to sell to the Underwriters, and the Underwriters agree, severally and
not jointly, to purchase from the Depositor, the respective principal amounts of
the Publicly Registered Notes set forth opposite such Underwriter's name in the
Terms Annex. The Publicly Registered Notes will be purchased by the
Underwriters at the purchase prices set forth in the Terms Annex.
Payment
for the Publicly Registered Notes will be made to the Depositor or to its order
by wire transfer of immediately available funds at 10:00 a.m., New York City
time, on the closing date specified in the Terms Annex (the "Closing Date") or at
such other time not later than seven (7) full Business Days after such specified
closing date as the Representatives and the Depositor may
determine.
Payment
for the Publicly Registered Notes will be made against delivery to the
Representatives, for the account of the Underwriters, at the office of Xxxxx
& XxXxxxx LLP, New York, New York, on the Closing Date. Each of
the Publicly Registered Notes to be so delivered will be initially represented
by one or more notes registered in the name of Cede & Co., the nominee of
The Depository Trust Company ("DTC"). The
interests of beneficial owners of the Publicly Registered Notes will be
represented by book entries on the records of DTC and its participating
members.
4. Offering by Underwriters;
Payment of Certain Costs and Expenses.
(a) The
Depositor understands that the Underwriters intend to offer the Publicly
Registered Notes for sale to the public (which may include selected dealers)
upon the terms set forth in the Prospectus, in the Time of Sale Information and
any Preliminary Prospectus.
(b) The
Underwriters will pay the following costs and expenses incident to the
performance of their obligations under this Agreement: (i) all Blue
Sky fees and expenses as well as reasonable fees and expenses of counsel in
connection with state securities law qualifications and any legal investment
surveys; and (ii) the reasonable fees and expenses of counsel to the
Underwriters. Except as provided in Section 5(h) and Section 10, the
Underwriters will pay all their own costs and expenses, including the cost of
printing any agreement among the
6
Underwriters, transfer taxes on resale
of the Publicly Registered Notes by the Underwriters, and any advertising
expenses in connection with any offers that the Underwriters may
make.
5. Covenants of the
Depositor. The Depositor (and, with respect to Section 5(h)
only, Ford Credit) covenants and agrees with the Underwriters:
(a) Preparation of Offering
Documents. Immediately following the execution of this
Agreement, to prepare a prospectus supplement setting forth such information
from the Terms Annex and such other information as the Depositor deems
appropriate.
(b) Filing of Prospectus and any Trust
Free Writing Prospectus. If required, to transmit the
Prospectus to the Commission within the applicable time period prescribed for
such filings under the Rules and Regulations by a means reasonably calculated to
result in a timely filing with the Commission pursuant to Rule 424(b) and
subject to Section 8, file any Trust Free Writing Prospectuses to the extent
required by Rule 433 under the Securities Act.
(c) Delivery of Proposed Amendment or
Supplement. Prior to the Closing Date, to furnish the
Representatives with a copy of any proposed amendment or supplement to the
Registration Statement, the Prospectus or the Time of Sale Information and to
give the Representatives reasonable opportunity to review such amendment or
supplement before it is filed and to provide any final Corrective Information to
the Representatives or such Underwriter at a time prior to the new Time of Sale
reasonably calculated to allow such Underwriter to provide such Corrective
Information to each investor at least 24 hours (or such lesser period as may be
agreed to by the Depositor and the Representatives) prior to the new Time of
Sale.
(d) Notice to the
Representatives. Prior to the Closing Date, to advise the
Representatives promptly (i) when any amendment to the Registration Statement or
supplement to the Prospectus is filed or becomes effective, (ii) of any request
by the Commission for any amendment to the Registration Statement or any
supplement to the Prospectus, (iii) of any stop order issued by the Commission
suspending the effectiveness of the Registration Statement or the initiation or
threat of any proceeding for that purpose, and (iv) of the receipt of any
notification with respect to any suspension of the qualification of the Publicly
Registered Notes for offer and sale in any jurisdiction or the initiation or
threat of any proceeding for such purpose; and to use its best efforts to
prevent the issuance of any such stop order or notification and, if issued, to
promptly use its best efforts to obtain its withdrawal.
(e) Blue Sky
Compliance. To endeavor to qualify the Publicly Registered
Notes for offer and sale under the securities laws of such states as the
Representatives may reasonably request and to continue such qualifications in
effect so long as necessary under such laws for the distribution of such
Publicly Registered Notes; provided that the Depositor
will not be required to qualify as a foreign limited liability company to do
business, or to file a general consent to service of process in any
jurisdiction; and provided
further that the expense of maintaining any such qualification more than
one year from the Closing Date with respect to the Publicly Registered Notes
will be at the Representatives' expense.
(f) Delivery of
Prospectus. To furnish the Underwriters with copies of the
Prospectus as amended or supplemented in such quantities as the Representatives
may reasonably request prior to the Closing Date. If the
Representatives notify the Depositor that delivery of a prospectus is required
by law in connection with sales of any Publicly Registered Notes in the
six-month period following the Closing Date, and either (i) an event has
occurred as a result of which the Prospectus would include an untrue statement
of a material fact or omit to state a
7
material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or (ii) for any other
reason it is necessary during such same period to amend or supplement the
Prospectus as amended or supplemented, the Depositor agrees to notify the
Representatives and to prepare and furnish to the Representatives, as the
Representatives may from time to time reasonably request, an amendment or a
supplement to the Prospectus that will correct such statement or omission or
effect such compliance. If an Underwriter is required by law to
deliver a prospectus or other offering document in connection with sales of any
Publicly Registered Notes at any time six months or more after the Closing Date,
the Representatives will notify the Depositor and inquire if either clause (i)
or (ii) above is applicable and, if so, upon the Representatives' request, but
at the expense of such Underwriter, the Depositor will prepare and deliver to
such Underwriter as many copies as the Representatives may reasonably request of
an amended or supplemented prospectus or offering document complying with the
Securities Act.
(g) Earnings
Statement. To make generally available to Noteholders as soon
as practicable, but in any event no later than eighteen months after the Closing
Date, an earnings statement for the Trust complying with Rule 158 under the
Securities Act and covering a period of at least twelve consecutive months
beginning after the Closing Date; provided that this covenant
may be satisfied by posting the monthly investor report for the Trust on a
publicly available website.
(h) Payment of Costs and
Expenses. To pay or cause to be paid, jointly and severally,
the following costs and expenses incident to the performance of each of their
obligations hereunder: (i) the Commission's filing fees with respect
to the Publicly Registered Notes; (ii) all fees of any rating agencies
rating the Notes; (iii) all fees and expenses of the Indenture Trustee and
the Owner Trustee; (iv) all reasonable fees and expenses of counsel to the
Indenture Trustee; (v) all reasonable fees and expenses of counsel to the Owner
Trustee; (vi) all fees and expenses of the independent accountants relating to
the letters referred to in Sections 6(a) and 6(t); (vii) all fees and expenses
of accountants incurred in connection with the delivery of any accountants' or
auditors' reports required pursuant to the Indenture or the Sale and Servicing
Agreement or under TALF; (viii) the cost of printing any preliminary and final
prospectuses provided to investors (including any amendments and supplements
thereto required within six months from the Closing Date pursuant to Section
5(f)) relating to the Publicly Registered Notes and the Registration
Statement; and (ix) any other fees and expenses incurred in connection with
the performance of each of their obligations hereunder.
(i) Delivery of
Reports. From the date of this Agreement until the retirement
of the Publicly Registered Notes, or until such time as the Representatives
advise the Depositor that the Underwriters have ceased to maintain a secondary
market in the Publicly Registered Notes, whichever occurs first, to deliver to
the Representatives upon request to the extent not otherwise available from any
publicly available source copies of: (i) the annual statement of compliance, the
Servicer's report on its assessment of compliance with the minimum servicing
criteria and the related attestation report delivered pursuant to Article III of
the Sale and Servicing Agreement, (ii) each certificate and the annual
statements of compliance delivered to the Indenture Trustee pursuant to Article
III of the Indenture, (iii) each material amendment to any Basic Document and
(iv) each monthly investor report for the Trust.
(j) Cooperation with Rating
Agencies. If the ratings provided with respect to the Publicly
Registered Notes by the rating agency or agencies that initially rate the
Publicly Registered Notes are conditional upon the furnishing of documents or
the taking of any other
8
actions
by the Depositor, the Depositor will furnish such documents and take any such
other actions.
(k) TALF
Requirements. For so long as any of the
Publicly Registered Notes remain outstanding, the Depositor will monitor the
performance of the Receivables and the Publicly Registered Notes and will, upon
determining that any statement set forth in paragraph (2) of Annex C to the
Prospectus Supplement either was not correct when made or has ceased to be
correct, (i) promptly notify each Underwriter of such determination, (ii) notify
the FRBNY and all registered holders of the Publicly Registered Notes in writing
of such determination no later than 9:00 a.m. New York City time on the fourth
Business Day following such determination, and (iii) issue a press release
regarding such determination no later than 9:00 a.m. New York City time on the
fourth Business Day following such determination.
6. Conditions of the
Obligations of the Underwriters. The obligations of the
Underwriters to purchase and pay for the Publicly Registered Notes will be
subject to the accuracy of the representations and warranties of the Depositor
in this Agreement, to the accuracy of the statements of officers of Ford Credit
and the Depositor made pursuant to the provisions of this Agreement, to the
performance by the Depositor of its obligations under this Agreement and to the
following additional conditions precedent:
(a) Accountant's
Letter. On or prior to the Time of Sale and on or prior to the
Closing Date, PricewaterhouseCoopers LLP (or other independent accountants
reasonably acceptable to the Representatives) will have furnished to the
Representatives a letter substantially in the form and substance of the draft to
which the Representatives previously agreed, concerning information in the
Preliminary Prospectus and the final Prospectus, respectively.
(b) Registration Compliance; No Stop
Order. The Prospectus and each Trust Free Writing Prospectus
will have been timely filed with the Commission under the Securities Act (in the
case of an Trust Free Writing Prospectus, to the extent required by Rule 433
under the Securities Act) and in accordance with Section 5(b) of this Agreement;
and, as of the Closing Date, no stop order will have been issued suspending the
effectiveness of the Registration Statement or any post-effective amendment, and
no proceedings for such purpose will be pending before or, to the knowledge of
the Depositor, threatened by the Commission.
(c) Officer's Certificates as to
Representations and Warranties. The Representatives will have
received an officer's certificate dated the Closing Date of the Chairman of the
Board, the President, an Executive Vice President, a Vice President, the
Treasurer or any Assistant Treasurer of:
(i) Ford
Credit, in which such officer will state that, to his or her knowledge after
reasonable investigation, the representations and warranties of the Servicer
contained in the Sale and Servicing Agreement and of Ford Credit contained in
the Purchase Agreement are true and correct in all material respects and that
Ford Credit has complied with all agreements and satisfied all conditions to be
performed by it or satisfied by it under such agreements in all material
respects.
(ii) The
Depositor, in which such officer will state that, to his or her knowledge after
reasonable investigation, the representations and warranties of the Depositor
contained in the Trust Agreement, the Sale and Servicing Agreement and the
Purchase Agreement are true and correct in all material respects, and that the
Depositor
9
has
complied with all agreements and satisfied all conditions to be performed by it
or satisfied by it under such agreements in all material respects.
(d) Officer's Certificates as to
Conditions Precedent. The Representatives will have received
as of the Closing Date an officer's certificate signed by the Chairman of the
Board, the President, an Executive Vice President, the Treasurer or any
Assistant Treasurer of the Depositor representing and warranting that the
representations and warranties of the Depositor in this Agreement are true and
correct in all material respects, and that the Depositor has complied with all
agreements and satisfied all conditions to be performed by it or satisfied by it
under this Agreement in all material respects.
(e) No Material Adverse
Change. Since the dates as of which information is given in
the Preliminary Prospectus, as amended or supplemented, there has not occurred
any material adverse change, or any development involving a prospective material
adverse change, in or affecting particularly (i) the business or assets of the
Depositor, or any material adverse change in the financial position or results
of operations of the Depositor or (ii) the business or assets of Ford Credit and
its subsidiaries considered as a whole, or any material adverse change in the
financial position or results of operations of Ford Credit and its subsidiaries
considered as a whole, otherwise than as set forth or contemplated in the
Prospectus, which in any case makes it impracticable or inadvisable in the
Representatives' reasonable judgment to proceed with the public offering or the
delivery of the Publicly Registered Notes on the terms and in the manner
contemplated in the Prospectus.
(f) War Out, Market
Out. Subsequent to the execution and delivery of this
Agreement:
(i) (A)
there will not have occurred a declaration of a general moratorium on commercial
banking activities by either the Federal or New York State authorities or a
material disruption in the securities settlement or clearance systems in the
United States, which moratorium or disruption remains in effect and which, in
the Representatives' reasonable judgment, substantially impairs the
Underwriters' ability to settle the transaction; provided that the exercise of
such judgment will take into account the availability of alternative means for
settlement and the likely duration of such moratorium or disruption with the
understanding that if the United States Securities and Exchange Commission or
with respect to a banking moratorium, the Board of Governors of the Federal
Reserve System or New York State banking authority, as applicable, has
unequivocally stated prior to the Closing Date that the resumption of such
systems will occur within three (3) Business Days of the scheduled Closing Date
for the Publicly Registered Notes, the ability to settle the transaction will
not be deemed to be substantially impaired and (B) the United States will not
have become engaged in hostilities which have resulted in the declaration of a
national emergency or a declaration of war, which makes it impracticable or
inadvisable, in the Representatives' reasonable judgment, to proceed with the
public offering or the delivery of the Publicly Registered Notes on the terms
and in the manner contemplated in the Prospectus as amended or supplemented;
and
(ii) there
will not have occurred (A) any suspension or limitation on trading in securities
generally on the New York Stock Exchange or the National Association of
Securities Dealers National Market system, or any setting of minimum prices for
trading on such exchange or market system, (B) any suspension of trading of any
securities of Ford Motor Company on any exchange or in the over-the-counter
market or (C) any
10
material
outbreak or material escalation of hostilities involving the engagement of armed
conflict in which the United States is involved or (D) any material adverse
change in the general economic, political, legal, tax, regulatory or financial
conditions or currency exchange rates in the United States (whether resulting
from events within or outside the United States) which, in the Representatives'
view has caused a substantial deterioration in the price and/or value of the
Publicly Registered Notes, that in the case of clause (A), (B), (C) or (D), in
the mutual reasonable determination of the Representatives and Ford Credit, the
effect of any such event or circumstance makes it impracticable or inadvisable
to proceed with the public offering or the delivery of the Publicly Registered
Notes on the terms and in the manner contemplated in the Prospectus as amended
or supplemented.
(g) In-house
Opinion. Xxxxx X. Xxxxxx, Secretary of the Depositor and Ford
Credit and Associate General Counsel, Global Structured Finance, of Ford Credit,
or other counsel satisfactory to the Representatives in their reasonable
judgment, will have furnished to the Representatives, her written opinion, dated
as of the Closing Date, in form satisfactory to the Representatives in their
reasonable judgment, substantially to the effect that:
(i) Ford
Credit is validly existing and in good standing as a limited liability company
under the Delaware Limited Liability Company Act, 6 Delaware Code §18-101 et
seq., as amended (the "Delaware Limited Liability
Company Act"). Ford Credit is duly qualified to transact business and is
in good standing in each jurisdiction in the United States of America in which
the conduct of its business or the ownership of its properties requires such
qualification, unless the failure to obtain such qualification would not
reasonably be expected to have a material adverse effect on the ability of Ford
Credit to perform its obligations under the Transaction Documents to which it is
a party.
(ii) Ford
Credit has the limited liability company power and authority to execute, deliver
and perform all its obligations under the Transaction Documents to which it is a
party under the Delaware Limited Liability Company Act. Ford Credit
has duly authorized the execution and delivery of the Transaction Documents to
which it is a party and the consummation of the transactions contemplated
thereby by all requisite limited liability company action under the Delaware
Limited Liability Company Act. Ford Credit has duly executed and
delivered each of the Transaction Documents to which it is a party under the
Delaware Limited Liability Company Act.
(iii) The
Depositor is validly existing and in good standing as a limited liability
company under the Delaware Limited Liability Company Act. The
Depositor is duly qualified to transact business and is in good standing in each
jurisdiction in the United States of America in which the conduct of its
business or the ownership of its properties requires such qualification, unless
the failure to obtain such qualification would not reasonably be expected to
have a material adverse effect on the ability of the Depositor to perform its
obligations under the Transaction Documents to which it is a party.
(iv) The
Depositor has the limited liability company power and authority to execute,
deliver and perform all its obligations under the Transaction Documents to which
it is a party under the Delaware Limited Liability Company Act. The
Depositor has duly authorized the execution and delivery of the Transaction
Documents to which it is a party and the consummation of the transactions
contemplated thereby by all requisite action under the Delaware Limited
Liability Company Act. The Depositor has duly
11
executed
and delivered each of the Transaction Documents to which it is a party under the
Delaware Limited Liability Company Act.
(v) The
execution and delivery by Ford Credit of each of the Transaction Documents to
which it is a party and the consummation by Ford Credit of the transactions
contemplated thereby, will not conflict with or result in a breach of any of the
terms or provisions of, or constitute a default (in each case material to Ford
Credit and its subsidiaries considered as a whole) under or result in the
creation or imposition of any lien, charge or encumbrance (in each case material
to Ford Credit and its subsidiaries considered as a whole), other than pursuant
to the Transaction Documents, upon any of the properties or assets of Ford
Credit pursuant to the terms of any indenture, mortgage, deed of trust, loan
agreement, guarantee, lease financing agreement or similar agreement or
instrument known to me under which Ford Credit is a debtor or guarantor, nor
will such action conflict with or violate any of the provisions of the
Certificate of Formation or the Limited Liability Company Agreement of Ford
Credit.
(vi) The
execution and delivery by the Depositor and the Trust of each of the Transaction
Documents to which it is a party and the consummation by each such Person of the
transactions contemplated thereby (including the issuance and delivery of the
Notes), will not conflict with or result in a breach of any of the terms or
provisions of, or constitute a default under or result in the creation or
imposition of any lien, charge or encumbrance, other than pursuant to the
Transaction Documents, upon any of the properties or assets of the Depositor or
the Trust pursuant to the terms of any indenture, mortgage, deed of trust, loan
agreement, guarantee, lease financing agreement or similar agreement or
instrument under which the Depositor or the Trust is a debtor or guarantor, nor
will any such action conflict with or violate any of the provisions of the
Certificate of Formation or the LLC Agreement of the Depositor or the
Certificate of Trust or the Trust Agreement of the Trust.
(vii) Such
counsel does not know of any legal or governmental proceedings pending or
threatened against Ford Credit, the Depositor or the Trust, or to which their
respective properties are subject, (i) seeking any determination or ruling that
could reasonably be expected to have a material adverse effect on the ability of
Ford Credit, the Depositor or the Trust to enter into or perform their
respective obligations under any of the Transaction Documents to which they are
parties or have a material adverse effect on the validity and enforceability of
any of the Transaction Documents to which they are parties, or (ii) seeking to
prevent the issuance of the Notes or the consummation of any of the transactions
contemplated by the Transaction Documents, or to adversely affect the
characterization of the Notes as indebtedness for U.S. federal income tax
purposes.
(viii) No
consent, approval, authorization or order of any United States federal or
Michigan State court or governmental agency or body, which has not been obtained
or taken and is not in full force and effect, is required for the consummation
of the transactions contemplated in the Transaction Documents.
(ix) Neither
the issuance or sale of the Notes, nor the execution and delivery by Ford Credit
of the Transaction Documents to which it is a party nor the consummation of any
of the other transactions contemplated in the Transaction Documents to which it
is a party will contravene the terms of any material provision of any United
States federal or Michigan State statute, order or regulation applicable to Ford
Credit or the Delaware Limited Liability Company Act, unless such contravention
would not reasonably be
12
expected
to have a material adverse effect on the ability of Ford Credit to enter into or
perform its obligations under the Transaction Documents, or have a material
adverse effect on the validity or enforceability of the Transaction
Documents.
(x) Ford
Credit is not required to be registered as an "investment company" under the
Investment Company Act of 1940, as amended.
(h) Bankruptcy
Opinion. Xxxxx & XxXxxxx LLP (or such other counsel
satisfactory to the Representatives in their reasonable judgment) will have
furnished their written opinions, dated the Closing Date, to the
Representatives, the Indenture Trustee and Ford Credit, with respect to the
characterization of the transfer of the Receivables by Ford Credit to the
Depositor as a sale and that so long as the Notes remain outstanding and the
Noteholders have not been paid in full, a creditor or trustee of Ford Credit (or
Ford Credit as debtor in possession) would not have valid grounds to have a
court disregard the separate legal existence of the Depositor so as to cause a
substantive consolidation of the assets and liabilities of the Depositor with
the assets and liabilities of Ford Credit, in a manner prejudicial to the
Noteholders, and such opinion will be in substantially the form previously
discussed with the Representatives and their counsel and satisfactory in form
and substance to the Representatives and to their counsel in their reasonable
judgment.
(i) Corporate
Opinion. Xxxxx & XxXxxxx LLP (or such other counsel
satisfactory to the Representatives in their reasonable judgment) will have
furnished to the Representatives their written opinion, dated the Closing Date,
in form satisfactory to the Representatives in their reasonable judgment, to the
effect that (capitalized terms used in this section to have the meanings given
in such opinion):
(i) Each
of the Basic Documents to which Ford Credit is a party constitutes the legal,
valid and binding agreement of Ford Credit, enforceable against Ford Credit in
accordance with its terms.
(ii) Each
of the Basic Documents (other than the Trust Agreement) to which the Depositor
is a party constitutes the legal, valid and binding agreement of the Depositor,
enforceable against the Depositor in accordance with its terms.
(iii) Each
of the Basic Documents to which the Trust is a party constitutes the legal,
valid and binding agreement of the Trust, enforceable against the Trust in
accordance with its terms.
(iv) The
Notes have been duly authorized by the Trust and, when duly executed and
delivered by the Trust, authenticated by the Indenture Trustee and delivered
against payment therefor, will constitute the legal, valid and binding
obligations of the Trust, enforceable against the Trust in accordance with their
terms, and will be entitled to the benefits of the Indenture.
(v) The
execution and delivery by each of Ford Credit, the Depositor and the Trust of
the Transaction Documents to which it is a party, and the compliance by each of
Ford Credit, the Depositor and the Trust with the terms and provisions of such
agreements, including the issuance of the Notes, will not contravene any
provision of any Applicable Law of the State of New York or the State of
Delaware or any Applicable Law of the United States of America.
13
(vi) No
Governmental Approval (other than the filing of UCC financing statements with
respect to (x) the sale or transfer of the Receivables by Ford Credit to the
Depositor pursuant to the Purchase Agreement and by the Depositor to the Trust
pursuant to the Sale and Servicing Agreement and (y) the grant by the Trust of a
security interest in such Receivables to the Indenture Trustee pursuant to the
Indenture), which has not been obtained or taken and is not in full force and
effect, is required to authorize, or is required in connection with, the
execution or delivery of the Transaction Documents to which it is a party by
Ford Credit, the Depositor and the Trust, or the enforceability of any of the
Basic Documents (other than the Trust Agreement) to which it is a party against
Ford Credit, the Depositor or the Trust, as applicable.
(vii) The
Registration Statement and any amendments thereto have become effective under
the Securities Act and, to the best of such counsel's knowledge, no stop order
suspending the effectiveness of the Registration Statement has been issued and
not withdrawn, and no proceedings for that purpose have been instituted or
threatened and not terminated.
(viii) The
offer, sale and delivery of the Class A-1 Notes by the Trust to the Class A-1
Note Purchasers in the manner contemplated in the Class A-1 Note Purchase
Agreement and the Class A-1 Notes Offering Memorandum does not require
registration under the Securities Act; provided, that such counsel expresses no
opinions as to any subsequent resale of any Class A-1 Note.
(ix) The
Class A-1 Notes, when duly executed, authenticated and delivered against payment
by the Class A-1 Note Purchasers, will constitute "Eligible Securities" as such
term is defined in Rule 2a-7(a)(10) under the Investment Company Act, so long as
the Class A-1 Notes have a rating from the Requisite NRSROs (as defined in Rule
2a-7 under the Investment Company Act) in one of the two highest short-term
rating categories.
(x) Neither
the Depositor nor the Trust is required to be registered as an "investment
company" under the Investment Company Act.
(xi) The
Indenture has been duly qualified under the Trust Indenture Act of 1939, as
amended, and the Trust Agreement is not required to be qualified under the Trust
Indenture Act of 1939, as amended.
(xii) The
Notes, the Indenture, the Underwriting Agreement and the other Basic Documents
conform in all material respects with their descriptions in the Base Prospectus,
the Preliminary Prospectus Supplement and the Final Prospectus
Supplement. The Class A-1 Notes and the Class A-1 Note Purchase
Agreement conform in all material respects with their descriptions in the
Preliminary Offering Memorandum and the Final Offering Memorandum.
(xiii) The
statements contained in the Base Prospectus, the Preliminary Prospectus
Supplement and the Final Prospectus Supplement, and in the Preliminary Offering
Memorandum and the Final Offering Memorandum, under the heading "ERISA
Considerations", to the extent they constitute matters of law or legal
conclusions with respect thereto, and subject to the qualifications set forth
therein, have been prepared or reviewed by such counsel and are correct in all
material respects.
14
(j)
Tax Opinion. Xxxxx
& XxXxxxx LLP (or such other counsel satisfactory to the Representatives in
their reasonable judgment), special tax counsel to the Depositor, will have
furnished to the Representatives their written opinion, dated as of the Closing
Date, in form and in substance satisfactory to the Representatives in their
reasonable judgment, to the effect that:
(i)
The Trust will not be classified as an association or a publicly traded
partnership taxable as a corporation for federal income tax purposes, and the
Class A Notes will be characterized as debt for federal income tax
purposes.
(ii)
The statements in the Base Prospectus, Preliminary Prospectus Supplement and
Final Prospectus Supplement under the headings "Summary—Tax Status" and "Tax
Matters," to the extent that they constitute matters of law or legal conclusions
with respect thereto, and subject to the qualifications set forth therein, have
been prepared or reviewed by such counsel and are correct in all material
respects
(k) Negative
Assurances. Xxxxx & XxXxxxx LLP (or such other counsel
satisfactory to the Representatives in their reasonable judgment), special
counsel to the Depositor and Ford Credit, will have stated that they have
participated in conferences with representatives of the Depositor and Ford
Credit and with Ford Credit's in-house counsel, and with the Representatives and
their counsel, concerning the Registration Statement, the Preliminary Prospectus
and the Prospectus, and although such counsel is not independently verifying the
accuracy, completeness or fairness of such documents, confirms that on the basis
of such information:
(i) Each
of the Registration Statement, as of the date it was declared effective by the
Commission and the Closing Date, and the Prospectus, as of its date and the
Closing Date, appeared on its face to be appropriately responsive in all
material respects to the Securities Act and the Rules and Regulations (except
that such counsel does not express any view as to financial statements,
schedules or other financial or statistical information included or incorporated
by reference therein or excluded therefrom or to the exhibits to the
Registration Statement).
(ii) No
facts have come to such counsel's attention to cause such counsel to believe
that the Time of Sale Information, considered as a whole, as of the Time of
Sale, considered together with the statements in the Prospectus with respect to
items dependent upon the pricing terms and delivery date of the Publicly
Registered Notes, contained an untrue statement of a material fact or omitted to
state any material fact necessary in order to make the statements therein not
misleading, or that the Prospectus as last amended or supplemented, as of its
date and as of the Closing Date, contained or contains an untrue statement of a
material fact or omitted to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading (except that such counsel does not express any view as to
financial statements, schedules or other financial or statistical information
included or incorporated by reference therein or excluded
therefrom).
(l) Security Interest
Opinion. Xxxxx & XxXxxxx LLP (or such other counsel
satisfactory to the Representatives in their reasonable judgment) will have
furnished their written opinion, dated the Closing Date, to the Representatives,
the Indenture Trustee and Ford Credit, with respect to the security interest of
the Trust in the Receivables and such opinion will be in substantially the form
previously discussed with the Representatives and their counsel and
15
satisfactory
in form and substance to the Representatives and to their counsel in their
reasonable judgment.
(m) Underwriters Counsel
Opinion. The Representatives will have received an opinion
addressed to the Representatives of XxXxx Xxxxxx LLP (or such other counsel
satisfactory to the Representatives in their reasonable judgment), counsel to
the Underwriters, dated the Closing Date, with respect to the validity of the
Publicly Registered Notes and such other related matters as the Representatives
require and the Depositor will have furnished or caused to be furnished to such
counsel such documents as they may reasonably request for the purpose of
enabling them to pass upon such matters.
(n) Owner Trustee
Opinion. The Representatives will have received an opinion
addressed to the Representatives, the Depositor and Ford Credit of Xxxxxxxx,
Xxxxxx & Finger P.A. (or such other counsel satisfactory to the
Representatives in their reasonable judgment), counsel to the Owner Trustee,
dated the Closing Date and satisfactory in form and substance to the
Representatives and their counsel, addressing such matters as the
Representatives may request and substantially to the effect that:
(i) The
Owner Trustee is a national banking association duly created, validly existing
and in good standing under the laws of the United States, with its principal
place of business in the State of Delaware.
(ii) The
Owner Trustee has all necessary power and authority to execute and deliver the
Trust Agreement and the Certificate of Trust and to execute and deliver, on
behalf of the Trust, each of the Indenture, the Sale and Servicing Agreement,
the Administration Agreement and the Control Agreement. The Owner
Trustee has all necessary power and authority to execute the Notes on behalf of
the Trust.
(iii) Each
of the Trust Agreement and the Certificate of Trust has been duly executed and
delivered by the Owner Trustee and each of the Indenture, the Sale and Servicing
Agreement, the Administration Agreement and the Control Agreement has been duly
executed and delivered by the Owner Trustee on behalf of the
Trust. Each of the Notes has been duly executed and delivered by the
Owner Trustee, on behalf of the Trust.
(iv) The
execution and delivery of the Trust Agreement and the Certificate of Trust by
the Owner Trustee and the execution and delivery of the Indenture, the Sale and
Servicing Agreement, the Administration Agreement, the Control Agreement and the
Notes by the Owner Trustee, on behalf of the Trust, does not conflict with or
result in a breach of or constitute a default under the Owner Trustee's
organization certificate or by-laws, any federal or Delaware law, rule or
regulation governing its banking or trust powers or, to the best of counsel's
knowledge, without independent investigation, any judgment or order applicable
to it or its acts, properties or, to the best of counsel's knowledge, without
independent investigation, any indenture, mortgage, contract or other agreement
or instrument to which the Owner Trustee in its respective capacities is a party
or by which it is bound.
(v) Neither
the execution and delivery by the Owner Trustee, on behalf of the Trust, of the
Indenture, the Sale and Servicing Agreement, the Administration Agreement, the
Control Agreement or the Notes nor the execution and delivery of the Trust
Agreement or the Certificate of Trust by the Owner Trustee, requires the
consent,
16
authorization,
order or approval of, the giving of notice to, the registration with, or the
taking of any other action with respect to, any governmental authority or agency
under the laws of the State of Delaware or the federal laws of the United States
governing the banking or trust powers of the Owner Trustee.
(vi) To
the best of counsel's knowledge, without independent investigation, there are no
actions or proceedings pending or threatened against the Owner Trustee in any
court or before any governmental authority, arbitration board or tribunal of the
State of Delaware which involve the Trust Agreement, the Indenture, the Sale and
Servicing Agreement, the Administration Agreement, the Control Agreement, the
Certificate of Trust or the Notes or would question the right, power or
authority of the Owner Trustee to enter into or perform its obligations under
the Trust Agreement or the Certificate of Trust or to execute and deliver, on
behalf of the Trust, the Indenture, the Sale and Servicing Agreement, the
Administration Agreement, the Control Agreement or the Notes.
(o) Delaware Trust
Opinion. The Representatives will have received an opinion
addressed to the Representatives, the Depositor and Ford Credit of Xxxxxxxx,
Xxxxxx & Finger P.A. (or such other counsel satisfactory to the
Representatives in their reasonable judgment), counsel to the Trust, dated the
Closing Date and satisfactory in form and substance to the Representatives and
their counsel, addressing such matters as the Representatives may request and
substantially to the effect that:
(i) The
Trust has been duly formed and is validly existing as a statutory trust under
the Delaware Statutory Trust Act, 12 Del. C. § 3801, et seq. (the "Delaware Act"), and
has the power and authority under the Trust Agreement and the Delaware Act to
execute, deliver and perform its obligations under the Trust Agreement, the
Indenture, the Sale and Servicing Agreement, the Administration Agreement, the
Control Agreement, the DTC Letter and the Notes.
(ii) The
Trust Agreement is the legal, valid and binding agreement of the Depositor and
the Owner Trustee, enforceable against the Depositor and the Owner Trustee, in
accordance with its terms.
(iii) The
Trust has the power and authority under the Trust Agreement and the Delaware Act
to Grant the Indenture Trust Estate to the Indenture Trustee pursuant to the
Indenture.
(iv) Each
of the Trust Agreement, the Indenture, the Sale and Servicing Agreement, the
Administration Agreement, the Control Agreement, the DTC Letter and the Notes
have been duly authorized by the Trust.
(v) Neither
the execution, delivery and performance by the Trust of the Trust Agreement, the
Indenture, the Sale and Servicing Agreement, the Administration Agreement, the
Control Agreement, the DTC Letter and the Notes, nor the consummation by the
Trust of any of the transactions contemplated thereby, requires the consent or
approval of, the giving of notice to, the registration with, or the taking of
any other action with respect to, any court, or governmental or regulatory
authority or agency under the laws of the State of Delaware, except for the
filing of the Certificate of Trust with the Secretary of State (which
Certificate of Trust has been duly filed).
17
(vi) Neither the
execution, delivery and performance by the Trust of the Trust Agreement, the
Indenture, the Sale and Servicing Agreement, the Administration Agreement, the
Control Agreement and the DTC Letter, including the execution and delivery of
such documents by the Owner Trustee on behalf of the Trust, nor the consummation
by the Trust or the Owner Trustee on behalf of the Trust of any of the
transactions contemplated thereby, is in violation of the Trust Agreement or of
any law, rule or regulation of the State of Delaware applicable to the Trust or
the Owner Trustee or, to the best of counsel's knowledge, without independent
investigation, any agreement, indenture, instrument, order, judgment or decree
to which the Trust or any of its property is subject.
(vii) To
the best of such counsel's knowledge, without independent investigation, there
are no pending or threatened actions, suits or proceedings affecting the Trust
before any court or other governmental authority of the State of Delaware which,
if adversely decided, would adversely affect the Trust Property or the ability
of the Trust to carry out the transactions contemplated by the Trust Agreement,
the Indenture, the Sale and Servicing Agreement, the Administration Agreement,
the Control Agreement and the DTC Letter.
(viii) Under
the Delaware Act, the Trust constitutes a separate legal entity, separate and
distinct from the holder of the Certificate of Trust and any other entity and,
insofar as the substantive law of the State of Delaware is applicable, the Trust
rather than the holder of the Certificate of Trust will hold whatever title to
such property as may be conveyed to it from time to time pursuant to the Trust
Agreement and the Sale and Servicing Agreement, except to the extent that such
Trust has taken action to dispose of or otherwise transfer or encumber any such
property.
(ix) Except
as otherwise provided in the Trust Agreement, under Section 3805(c) of the
Delaware Act, a holder of the Certificate of Trust has no interest in specific
statutory trust property.
(x) Under
Section 3805(b) of the Delaware Act, no creditor of any holder of the
Certificate of Trust will have any right to obtain possession of, or otherwise
exercise legal or equitable remedies with respect to, the property of the Trust
except in accordance with the terms of the Trust Agreement.
(xi) Under
the Trust Agreement, the Owner Trustee has the authority to execute and deliver
on behalf of the Trust the Basic Documents to which the Trust is a
party.
(p) Indenture Trustee
Opinion. The Representatives will have received an opinion
addressed to the Representatives, the Depositor and Ford Credit of Xxxxxxxxxxxx
Xxxx & Xxxxxxxxx LLP (or such other counsel satisfactory to the
Representatives in their reasonable judgment), counsel to the Indenture Trustee,
dated the Closing Date and satisfactory in form and substance to the
Representatives and their counsel, to the effect that:
(i) The
Indenture Trustee has been legally incorporated under the laws of the State of
New York and, based upon a certificate of good standing issued by that State, is
validly existing as a banking association in good standing under the laws of
that State, and has the requisite entity power and authority to execute and
deliver the Indenture and the Administration Agreement and to perform its
obligations thereunder.
18
(ii) With
respect to the Indenture Trustee, the performance of its obligations under the
Indenture and the Administration Agreement and the consummation of the
transactions contemplated thereby do not require any consent, approval,
authorization or order of, filing with or notice to any court, agency or other
governmental body, except such as may be required under the securities laws of
any state or such as have been obtained, effected or given.
(iii) With
respect to the Indenture Trustee, the performance of its obligations under the
Indenture and the Administration Agreement and the consummation of the
transactions contemplated thereby will not result in: (i) any breach or
violation of its certificate of incorporation or bylaws, (ii) to such counsel's
knowledge, any breach, violation or acceleration of or default under any
indenture or other material agreement or instrument to which the Indenture
Trustee is a party or by which it is bound or (iii) any breach or violation of
any statute or regulation or, to such counsel's knowledge any order of any
court, agency or other governmental body.
(iv) To
such counsel's knowledge, with respect to the Indenture Trustee, there is no
legal action, suit, proceeding or investigation before any court, agency or
other governmental body pending or threatened against it which, either in one
instance or in the aggregate, draws into question the validity of the Indenture
or the Administration Agreement, seeks to prevent the consummation of any of the
transactions contemplated by the Indenture or the Administration Agreement or
would impair materially the ability of the Indenture Trustee to perform its
obligations under the Indenture or the Administration Agreement.
(v) Each
of the Indenture and the Administration Agreement has been duly authorized,
executed and delivered by the Indenture Trustee and, assuming the necessary
authorization, execution and delivery of such agreements by the other parties
thereto, is a valid and legally binding agreement under the laws of the State of
New York, enforceable thereunder against the Indenture Trustee in accordance
with its terms.
(vi) The
Notes have been duly authenticated and delivered by the Indenture Trustee in
accordance with the Indenture.
(q) Ratings
Letters. The Depositor will have received ratings letters that
assign the ratings to the Publicly Registered Notes specified in the Terms
Annex.
(r) Transaction
Documents. Each Transaction Document will have been executed
and delivered by the parties to such Transaction Document.
(s) Consideration. At the Closing Date, the
Notes will have been validly issued by the Trust and paid for by the
Depositor.
(t) TALF Deliveries. The following
documents will have been executed and delivered in connection with
TALF:
(i) On
or prior to 5:00 p.m., New York City time (or such later time as may be
specified by FRBNY), on the date that is four Business Days prior to the Closing
Date (or such later date as may be specified by FRBNY), PricewaterhouseCoopers
LLP (or other independent accountants acceptable to the FRBNY) will have
furnished to Ford Credit an attestation, substantially in the form required
under TALF, stating that Ford
19
Credit's
assertion that the Notes are "eligible collateral" under TALF is fairly stated
in all material respects, and a copy of such attestation will have been
delivered to the FRBNY.
(ii) On
or prior to 5:00 p.m. New York City time (or such later time as may be specified
by FRBNY), on the date that is four Business Days prior to the Closing Date (or
such later date as may be specified by FRBNY), the Trust and Ford Credit, as
Sponsor, will have executed the Certification as to TALF Eligibility relating to
the Notes, substantially in the form required under TALF, and delivered such
Certification as to TALF Eligibility to the FRBNY, with a copy to the
Underwriters.
(iii) On
or prior to 5:00 p.m. New York City time (or such later time as may be specified
by the FRBNY), on the date that is four Business Days prior to the Closing Date
(or such later date as may be specified by FRBNY), Ford Credit, as Sponsor, will
have executed the Indemnity Undertaking relating to the Notes, substantially in
the form required under TALF, and delivered such Indemnity Undertaking to the
FRBNY, with a copy to the Underwriters.
(iv) On
or prior to 12:00 p.m., New York City time (or such later time as may be
specified by FRBNY), on the date that is three Business Days prior to the
Closing Date (or such later date as may be specified by FRBNY), the Depositor
will have delivered a copy of the Prospectus to the FRBNY.
(v) On
or prior to 10:00 a.m. New York City time (or such later time as may be
specified by FRBNY), on the Closing Date, the Depositor will have delivered a
copy of the Rating Letters to the FRBNY.
(vi) Xxxxx
& XxXxxxx LLP (or such other counsel satisfactory to the Representatives in
their reasonable judgment) will have furnished a letter, dated the Closing Date,
to the Representatives, in form satisfactory to the Representatives in their
reasonable judgment, to the effect that each Primary Dealer who is also an
Underwriter will be entitled to rely on the negative assurances letter described
in Section 6(k), or such negative assurances letter will provide for such
reliance.
7. Indemnification and
Contribution.
(a) Each
of Ford Credit and the Depositor, jointly and severally, will indemnify and hold
each Underwriter harmless against any losses, claims, damages or liabilities,
joint or several, to which such Underwriter may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Registration Statement, the Prospectus, the Preliminary Prospectus, the
Static Pool Information, or any amendment or supplement to any of such
documents, or any Trust Free Writing Prospectus or the Time of Sale Information,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, and will reimburse each Underwriter for any legal or other
expenses reasonably incurred by such Underwriter in connection with
investigating or defending any such action or claim; provided, however, that
neither Ford Credit nor the Depositor will be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in conformity with
written information furnished to Ford
20
Credit or
the Depositor by any Underwriter through the Representatives specifically for
use therein; and provided,
further, that neither Ford Credit nor the Depositor will be liable to any
Underwriter or any person controlling any Underwriter under the indemnity
agreement in this subsection (a) with respect to any of such documents to the
extent that any such loss, claim, damage or liability results from the fact that
such Underwriter, at or prior to the Time of Sale, failed to send or give to any
person to whom it sold the Publicly Registered Notes a copy of the Preliminary
Prospectus, the Time of Sale Information or the Prospectus, whichever is more
recent, if the Depositor has prior to the Time of Sale furnished copies thereof
to such Underwriter.
The
indemnity agreement in this subsection (a) will be in addition to any liability
which Ford Credit and/or the Depositor may otherwise have and will extend, upon
the same terms and conditions, to each person, if any, who controls any
Underwriter within the meaning of the Securities Act.
(b) Each
Underwriter, severally and not jointly, will indemnify and hold harmless Ford
Credit and the Depositor against any losses, claims, damages or liabilities to
which Ford Credit or the Depositor may become subject, under the Securities Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained (i) in the Registration
Statement, the Prospectus, the Preliminary Prospectus, or any amendment or
supplement to any such documents, or any Free Writing Prospectus or the Time of
Sale Information, or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in any of such documents in reliance upon and in
conformity with written information furnished to Ford Credit or the Depositor by
such Underwriter through the Representatives specifically for use therein or
(ii) in an Underwriter Free Writing Prospectus (as defined herein) prepared by
such Underwriter that has not been previously approved by Ford Credit or the
Depositor and is not Trust Information (as defined herein), and will reimburse
any legal or other expenses reasonably incurred by Ford Credit or the Depositor
in connection with investigating or defending any such action or
claim.
The
indemnity agreement in this subsection (b) will be in addition to any liability
which each Underwriter may otherwise have and will extend, upon the same terms
and conditions, to each person, if any, who controls Ford Credit or the
Depositor within the meaning of the Securities Act.
(c) Promptly
after receipt by an indemnified party under subsection (a) or (b) of written
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement
thereof, and in the event that such indemnified party does not so notify the
indemnifying party within 30 days following receipt of any such notice by such
indemnified party, the indemnifying party will have no further liability under
such subsection to such indemnified party unless the indemnifying party has
received other notice addressed and delivered in the manner provided in Section
12 hereof of the commencement of such action; but the omission so to notify the
indemnifying party will not relieve it from any liability which it may have to
any indemnified party otherwise than under such subsection. In case
any such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to
21
participate
therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party in its reasonable judgment, and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under such subsection for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation.
No
indemnifying party will, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened action in respect of
which any indemnified party is or could have been a party if indemnity could
have been sought hereunder by such indemnified party unless such settlement
includes (i) an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action and (ii) does
not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of the indemnified party.
(d) If
the indemnification provided for in this Section 7 is unavailable or
insufficient to hold harmless an indemnified party under subsection (a) or (b)
above in respect of any losses, claims, damages or liabilities (or actions in
respect thereof) referred to therein, then each indemnifying party will
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative benefits received
by Ford Credit and the Depositor on the one hand and such Underwriter on the
other from the offering of the Publicly Registered Notes. If,
however, the allocation provided by the immediately preceding sentence is not
permitted by applicable law, then each indemnifying party will contribute to
such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of Ford Credit and the Depositor on the one hand and such Underwriter on
the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities (or actions in respect thereof) as well
as any other relevant equitable considerations. The relative benefits
received by Ford Credit and the Depositor on the one hand and such Underwriter
on the other will be deemed to be in the same proportion as the total net
proceeds from the offering (before deducting expenses) received by Ford Credit
and the Depositor bear to the total underwriting discounts and commissions
received by such Underwriter, in each case as set forth in the table on the
cover page of the Prospectus as amended or supplemented with respect to the
Publicly Registered Notes. The relative fault will be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by Ford Credit, the Depositor and their
affiliates or by such Underwriter and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission, including, with respect to such Underwriter, the extent
to which such losses, claims, damages or liabilities (or actions in respect
thereof) result from the fact that such Underwriter sold the Publicly Registered
Notes to a person to whom there was not sent or given, at or prior to the Time
of Sale, a copy of the Preliminary Prospectus, the Time of Sale Information or
the Prospectus, whichever is more recent, if the Depositor has previously
furnished copies thereof to such Underwriter.
Ford
Credit, the Depositor and the Underwriters, severally and not jointly, agree
that it would not be just and equitable if contribution pursuant to this
subsection (d) were determined by pro rata allocation (even if the Underwriters
were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to above in this subsection (d). The amount paid by an indemnified
party
22
as a
result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this subsection (d) will be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or
claim. Notwithstanding the provisions of this subsection (d), no
Underwriter will be required to contribute any amount pursuant to this Agreement
in excess of the underwriting discounts and commissions received by such
Underwriter, as reduced by the amount of any damages which such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The obligations of the
Underwriters of the Publicly Registered Notes in this subsection (d) to
contribute are several in proportion to their respective underwriting
obligations with respect to such Publicly Registered Notes as set forth in the
Terms Annex and not joint.
8. Free Writing Prospectuses;
Delivery of Preliminary Prospectus
(a) Unless
preceded or accompanied by a prospectus satisfying the requirements of Section
10(a) of the Securities Act, no Underwriter will convey or deliver any written
communication to any person in connection with the initial offering of the
Publicly Registered Notes unless such written communication (i) is made in
reliance on Rule 134 under the Securities Act, (ii) constitutes a prospectus
satisfying the requirements of Rule 430B under the Securities Act or (iii)
constitutes a Free Writing Prospectus.
(b) Each
Underwriter represents and agrees with the Depositor and Ford Credit that (i) it
has not and will not prepare or use any Free Writing Prospectus (any Free
Writing Prospectus prepared by or on behalf of an Underwriter is referred to as
an "Underwriter Free
Writing Prospectus") that contains any information other than (x)
information included in the Preliminary Prospectus or to be included in the
final Prospectus ("Trust Information")
or (y) expected pricing parameters for the Publicly Registered Notes and status
of subscriptions or allocations for the Publicly Registered Notes, unless
otherwise agreed to by the Depositor, (ii) it will discuss with the Depositor
and Ford Credit the information to be included, prior to its first use, in any
Underwriter Free Writing Prospectus that includes pricing-related information
(including class size, coupons or spread and price placed on Bloomberg screens)
unless such pricing-related information was contained in an Underwriter Free
Writing Prospectus previously discussed with the Depositor, and (iii) it will
not use any "ABS informational and computational material," as defined in Item
1101(a) of Regulation AB under the Securities Act in reliance upon Rules 167 and
426 under the Securities Act. Each Underwriter will deliver to the
Depositor any Underwriter Free Writing Prospectus required to be filed with the
Commission (other than an Underwriter Free Writing Prospectus referred to in
Section 8(f)) the Business Day prior to its first use (except as otherwise
agreed by the Depositor), except that the Representatives agree to provide an
Underwriter Free Writing Prospectus with all final pricing information as soon
as practicable on the day the Publicly Registered Notes are priced.
(c) The
Depositor represents and agrees with the Underwriters that it has not prepared
any Free Writing Prospectuses other than any listed in the Terms Annex under
"Trust Free Writing Prospectuses."
(d) Each
Underwriter represents and agrees with the Depositor and Ford Credit that each
Underwriter Free Writing Prospectus prepared or used by such Underwriter, if
any, when read in conjunction with the Preliminary Prospectus and any Trust Free
Writing Prospectus, will not, as of the date such Underwriter Free Writing
Prospectus was conveyed or
23
delivered
to any prospective purchaser of Publicly Registered Notes, include any untrue
statement of a material fact or omit any material fact necessary to make the
statements contained therein, in light of the circumstances under which they
were made, not misleading;
provided, however, that such Underwriter makes no representation to the
extent such misstatements or omissions were the result of any inaccurate Trust
Information supplied by the Depositor or Ford Credit to the Representatives or
such Underwriter, which information was not corrected by Corrective Information
subsequently supplied by the Depositor or Ford Credit to the Representatives or
such Underwriter prior to the Time of Sale.
(e) The
Depositor agrees to file with the Commission when required under the Rules and
Regulations the following:
(i)
the Preliminary Prospectus;
(ii)
each Trust Free Writing Prospectus required to be filed pursuant to Rule 433(d)
under the Securities Act;
(iii) any
Underwriter Free Writing Prospectus required to be filed pursuant to Rule 433(d)
under the Securities Act (other than an Underwriter Free Writing Prospectus
required to be filed pursuant to Rule 433(d)(1)(ii) under the Securities Act);
provided that such
Underwriter Free Writing Prospectus was delivered to the Depositor reasonably in
advance of the time required to be filed pursuant to Rule 433(d) under the
Securities Act; and
(iv) any
Free Writing Prospectus for which the Depositor or any person acting on its
behalf provided, authorized and approved information that is prepared and
published or disseminated by a person unaffiliated with the Depositor or any
other offering participant that is in the business of publishing, radio or
television broadcasting or otherwise disseminating communications.
(f) Each
Underwriter agrees to file with the Commission any Underwriter Free Writing
Prospectus prepared by it when required to be filed under Rule 433(d)(1)(ii)
under the Securities Act, and upon request, deliver a copy to the Depositor and
Ford Credit.
(g) Notwithstanding
the provisions of Section 8(e) and Section 8(f), neither the Depositor nor any
Underwriter will be required to file any Free Writing Prospectus that does not
contain substantive changes from or additions to a Free Writing Prospectus
previously filed with the Commission.
(h) The
Depositor and each Underwriter agree that any Free Writing Prospectuses prepared
by it will contain substantially the following legend:
The
Issuer has filed a registration statement (including a prospectus) with the SEC
for the offering to which this free writing prospectus
relates. Before you invest, you should read the prospectus in that
registration statement and other documents the Issuer has filed with the SEC for
more complete information about the Issuer and this offering. You may
get these documents for free by visiting XXXXX on the SEC website at
xxx.xxx.xxx. Alternatively, the Issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you
request it by calling 0-000-000-0000.
24
(i) The
Depositor and each Underwriter agree to retain all Free Writing Prospectuses
that they have used and that are not filed with the Commission in accordance
with Rule 433 under the Securities Act.
(j) Each
Underwriter, severally, represents and agrees (i) that it did not enter into any
Contract of Sale for any Publicly Registered Notes prior to the Time of Sale and
(ii) that it will, at any time that such Underwriter is acting as an
"underwriter" (as defined in Section 2(a)(11) of the Securities Act) with
respect to the Publicly Registered Notes, convey the Preliminary Prospectus to
each investor to whom Publicly Registered Notes are sold by it during the period
prior to the filing of the final Prospectus (as notified to the Underwriters by
the Depositor), at or prior to the applicable time of any such Contract of Sale
with respect to such investor.
(k) Each
Underwriter covenants with the Depositor and the Trust that after the final
Prospectus is made available to such Underwriter, it will not distribute any
written information in connection with the offering of the Publicly Registered
Notes during the ninety-day period (or such longer period as required by law)
following the Closing Date to a prospective purchaser of Publicly Registered
Notes unless such information is preceded or accompanied by the final
Prospectus.
9. Survival of Certain
Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of Ford Credit and
the Depositor or the officers of Ford Credit and the Depositor and of the
Underwriters set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation or statement as to the results
thereof, made by or on behalf of any Underwriter, Ford Credit, the Depositor or
any of their respective representatives, officers or directors of any
controlling person, and will survive delivery of and payment for the Publicly
Registered Notes.
10. Failure to Purchase the
Publicly Registered Notes.
(a) If
the purchase of the Publicly Registered Notes is not consummated because the
circumstances described in Section 6(f) have occurred, then neither Ford Credit
nor the Depositor will have any liability to the Underwriters with respect to
the Publicly Registered Notes except as provided in Section 5(h) and Section 7;
but if for any other reason but subject to subsection (b) below, the Publicly
Registered Notes are not delivered to the Underwriters as provided in this
Agreement, Ford Credit and the Depositor will be liable, jointly and severally,
to reimburse the Underwriters, through the Representatives, for all
out-of-pocket expenses, including counsel fees and disbursements reasonably
incurred by the Underwriters in making preparations for the offering of the
Publicly Registered Notes, but neither Ford Credit nor the Depositor will then
have any further liability to any Underwriter with respect to the Publicly
Registered Notes except as provided in Section 5(h) and Section 7.
(b) If
any Underwriter or Underwriters default on their obligations to purchase
Publicly Registered Notes hereunder and the aggregate principal amount of
Publicly Registered Notes that such defaulting Underwriter or Underwriters
agreed but failed to purchase does not exceed 10% of the total principal amount
of the Publicly Registered Notes, the Representatives may make arrangements
satisfactory to the Depositor for the purchase of such Publicly Registered Notes
by other persons, including the non-defaulting Underwriter or Underwriters, but
if no such arrangements are made by the Closing Date, the non-defaulting
Underwriter or Underwriters will be obligated, in proportion to their
commitments hereunder, to purchase the Publicly Registered Notes that such
defaulting Underwriter or Underwriters agreed
25
but
failed to purchase. If any Underwriter or Underwriters so default and
the aggregate principal amount of Publicly Registered Notes with respect to
which such default or defaults occur exceeds 10% of the total principal amount
of the Publicly Registered Notes and arrangements satisfactory to the
non-defaulting Underwriter or Underwriters and the Depositor for the purchase of
such Publicly Registered Notes by other persons are not made within 36 hours
after such default, this Agreement will terminate without liability on the part
of any non-defaulting Underwriter and Ford Credit and the Depositor, except as
provided in Section 5(h) and Section 7 hereof. Nothing herein will
relieve a defaulting Underwriter or Underwriters from liability for its
default.
11. No Fiduciary
Duty. The Depositor acknowledges that in connection with the
offering of the Publicly Registered Notes: (a) the Underwriters have
acted at arm's length, are not agents of, and owe no fiduciary duties to, the
Depositor or any other person, (b) the Underwriters owe the Depositor only those
duties and obligations set forth in this Agreement and (c) the Underwriters may
have interests that differ from those of the Depositor. The Depositor waives to
the full extent permitted by applicable law any claims it may have against the
Underwriters arising from an alleged breach of fiduciary duty in connection with
the offering of the Publicly Registered Notes.
This
Agreement, together with any contemporaneous written agreements and any prior
written agreements (to the extent not superseded by this Agreement) that relate
to the offering of the Publicly Registered Notes, represents the entire
agreement between the Depositor and the Underwriters with respect to the
preparation of the Prospectus, and the conduct of the offering, and the purchase
and sale of the Publicly Registered Notes.
12. Notices. All
notices, requests, demands, consents, waivers or other communications to or from
the parties to this Agreement must be in writing and will be deemed to have been
given and made:
(a) upon
delivery or, in the case of a letter mailed by registered first class mail,
postage prepaid, three days after deposit in the mail,
(b) in
the case of a fax, when receipt is confirmed by telephone, reply email or reply
fax from the recipient, and
(c) in
the case of an email, when receipt is confirmed by telephone or reply email from
the recipient.
Communications
to the Representatives, in their capacity as Representatives of the Underwriters
or in their individual capacities, will be given to the Representatives at their
respective addresses set forth in the Terms Annex:
Communications
to the Depositor will be given to:
Ford Credit Auto Receivables Two LLC
c/o Ford Motor Company
World Headquarters, Xxxxx 000-X0
Xxx Xxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Ford Credit SPE Management Office
Telephone: (000) 000-0000
Fax: (000) 000-0000
26
With a copy to:
Ford Motor Credit Company LLC
Xxx Xxxxxxxx Xxxx
Xxxxx 0000, Xxxxxx 000-000
Xxxxxxxx, Xxxxxxxx 00000
Attention: Corporate Secretary
Telephone: (000) 000-0000
Fax: (000) 000-0000
Communications to Ford Credit will be
given to:
Ford Motor Credit Company LLC
Xxx Xxxxxxxx Xxxx
Xxxxx 0000, Xxxxxx 000-000
Xxxxxxxx, Xxxxxxxx 00000
Attention: Corporate Secretary
Telephone: (000) 000-0000
Fax: (000) 000-0000
13. Successors. This
Agreement will inure to the benefit of and be binding upon the Underwriters, the
Depositor and Ford Credit and their respective successors and the officers and
directors and controlling persons referred to in Section 7, and no other person
will have any right or obligations hereunder.
14. Governing
Law. THIS
AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.
15. Submission to
Jurisdiction. The parties submit to the nonexclusive
jurisdiction of the United States District Court for the Southern District of
New York and of any New York State Court sitting in New York, New York for
purposes of all legal proceedings arising out of or relating to this Agreement.
The parties irrevocably waive, to the fullest extent they may do so, any
objection that they may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.
16. Waiver of Jury
Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
17. Severability. If
any of the covenants, agreements or terms of this Agreement is held invalid,
illegal or unenforceable, then it will be deemed severable from the remaining
covenants, agreements or terms of this Agreement and will in no way affect the
validity, legality or enforceability of the remaining Agreement.
18. Counterparts. This
Agreement may be executed in any number of counterparts. Each
counterpart will be an original, and all counterparts will together constitute
one and the same instrument.
27
[Remainder
of Page Intentionally Left Blank]
28
|
EXECUTED |
FORD
CREDIT AUTO RECEIVABLES
TWO
LLC
|
|||
|
By:
|
/s/ Xxxxx X. Xxxxxx | |
Name: Xxxxx X. Xxxxxx | |||
Title: Secretary | |||
FORD
MOTOR CREDIT COMPANY LLC
|
|||
|
By:
|
/s/ Xxxxxx X. Xxxxxxxx | |
Name: Xxxxxx X. Xxxxxxxx | |||
Title: Assistant Treasurer | |||
XXXXXX XXXXXXX & CO. INCORPORATED |
By:
|
/s/ Xxxxxx
Xxxx
|
||
Name: Xxxxxx Xxxx | |||
Title: Vice President |
CREDIT
SUISSE SECURITIES (USA) LLC
|
By:
|
/s/ Xxxx
Xxxxxxxxx
|
||
Name: Xxxx Xxxxxxxxx | |||
Title: Director |
Each as
an Underwriter and as a
Representative
of the other Underwriter
ANNEX
A
TERMS
ANNEX
July 7,
2009
Publicly Registered
Notes
Class A-2 Notes
Class A-3 Notes
Class A-4
Notes
Private
Notes
Class A-1
Notes
Underwriters
Xxxxxx
Xxxxxxx & Co. Incorporated
Credit
Suisse Securities (USA) LLC
Terms of
the Publicly Registered Notes
Pricing
Date: July
7, 2009
Time of
Sale: 12:00
PM (EST), July 7, 2009
Closing
Date: July
14, 2009
A-1
Required
Ratings as of the Closing Date
Xxxxx'x
|
Fitch
|
||
Class
A-2 Notes
|
Aaa
|
AAA
|
|
Class
A-3 Notes
|
Aaa
|
AAA
|
|
Class
A-4 Notes
|
Aaa
|
AAA
|
Pricing
Information
Notes
|
Aggregate
Principal
Amount
|
Interest
Rate
|
Purchase
Price
(as
a % of the aggregate
principal
amount)
|
Final
Scheduled
Payment Date |
Class
A-2 Notes
|
$184,000,000
|
2.00%
|
99.74645%
|
December
15, 2011
|
Class
A-3 Notes
|
$343,000,000
|
2.72%
|
99.66823%
|
November
15, 2013
|
Class
A-4 Notes
|
$163,000,000
|
4.43%
|
99.53792%
|
November
15, 2014
|
Underwriters
and Allotments
Underwriters
|
Initial
Principal
Amount
of
Class
A-2 Notes
|
Initial
Principal
Amount of
Class
A-3 Notes
|
Initial
Principal Amount of
Class
A-4 Notes
|
|
Xxxxxx
Xxxxxxx & Co. Incorporated
|
$ 92,000,000
|
$171,500,000
|
$ 81,500,000
|
|
Credit
Suisse Securities (USA) LLC
|
$ 92,000,000
|
$171,500,000
|
$ 81,500,000
|
|
Total
|
$184,000,000
|
$343,000,000
|
$163,000,000
|
Parties
|
||
Trust:
|
||
Owner
Trustee:
|
U.S.
Bank Trust National Association.
|
|
Indenture
Trustee:
|
The
Bank of New York
Mellon.
|
A-2
Documents
|
|
Registration
Statement
|
Registration
Statement Registration (No. 333-143316) filed on May 29, 2007 and amended
by Amendment No. 1 filed on June 13, 2007 and effective June 14,
2007.
|
Indenture:
|
Indenture,
to be dated as of Cutoff Date, between the Trust and the Indenture
Trustee.
|
Trust
Agreement:
|
Amended
and Restated Trust Agreement, to be dated as of Cutoff Date, between the
Depositor and the Owner Trustee.
|
Purchase
Agreement:
|
Purchase
Agreement, to be dated as of Cutoff Date, between Ford Credit and the
Depositor.
|
Sale
and Servicing Agreement:
|
Sale
and Servicing Agreement, to be dated as of Cutoff Date, among the
Depositor, the Servicer and the Trust.
|
Administration
Agreement:
|
Administration
Agreement, to be dated as of Cutoff Date, among Ford Credit, the Trust and
the Indenture Trustee.
|
Control
Agreement:
|
Account
Control Agreement, to be dated as of Cutoff Date, among the Trust, as
debtor, the Indenture Trustee and The Bank of New York Mellon, in its
capacity as a securities
intermediary.
|
A-3
Address for
Notices to the Representatives
Xxxxxx
Xxxxxxx & Co. Incorporated
0000
Xxxxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Credit
Suisse Securities (USA) LLC
Eleven Madison Avenue, 5th
Floor
New York, New York
10010
Time of
Sale Information
Preliminary
Prospectus:
|
Preliminary
Prospectus, dated July 1, 2009
|
Trust Free
Writing Prospectuses
None
A-4