EXHIBIT 4.27
________________________________________________________________________________
FCC NATIONAL BANK,
Seller and Servicer
and
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION,
Trustee
on behalf of the Certificateholders
____________________________
SERIES 1997-U SUPPLEMENT
Dated as of October 1, 1997
to
POOLING AND SERVICING AGREEMENT
Dated as of June 1, 1990
_____________________________
$457,142,858
FIRST CHICAGO MASTER TRUST II
SERIES 1997-U
________________________________________________________________________________
TABLE OF CONTENTS
PAGE
----
SECTION 1. Designation...................................................................... 1
SECTION 2. Definitions....................................................................... 2
SECTION 3. Minimum First Chicago Interest Percentage
and Minimum Aggregate Principal Receivables....................................... 19
SECTION 4. Reassignment and Transfer Terms................................................... 20
SECTION 5. Delivery and Payment for the Series
1997-U Certificates............................................................... 20
SECTION 6. Form of Delivery of the Series 1997-U
Certificates...................................................................... 20
SECTION 7. Article IV of Agreement........................................................... 20
Section 4.02 Rights of Series 1997-U
Certificateholders......................................................... 21
Section 4.03 Collections and Allocations................................................ 21
Section 4.04 Determination of Monthly
Interest for the Series
1997-U Certificates........................................................ 23
Section 4.05 Determination of Monthly
Principal for the Series
1997-U Certificates........................................................ 26
Section 4.06 Coverage of Required Amount
for the Class A Certificates............................................... 28
Section 4.07 Application of Class A
Available Funds, Collateral
Available Funds, Class A
Available Principal Collections
and Collateral Principal
Collections on Deposit in
the Collection Account for
the Series 1997-U Certificates............................................. 29
Section 4.08 Investor Charge-Offs....................................................... 32
Section 4.09 Excess Spread.............................................................. 33
Section 4.10 Reallocated Principal
Collections................................................................ 34
Section 4.11 Cash Collateral Account.................................................... 35
Section 4.12 Interchange; Interchange
Monthly Servicing Fee...................................................... 38
Section 4.13 Determination of LIBOR..................................................... 39
(i)
PAGE
----
Section 4.14 Postponement of Accumulation
Period..................................................................... 40
Section 4.15 Principal Funding Account.................................................. 41
Section 4.16 Reserve Account............................................................ 42
SECTION 8. Article V of the Agreement........................................................ 45
Section 5.01 Distributions.............................................................. 45
Section 5.02 Statements to
Certificateholders......................................................... 46
SECTION 9. Additional Liquidation Events..................................................... 47
SECTION 10. Related Interest Periods.......................................................... 49
SECTION 11. Eligible Servicer................................................................. 49
SECTION 12. Trustee Resignation............................................................... 49
SECTION 13. Tax Opinion....................................................................... 49
SECTION 14. Subordination of Certain Termination
Payments.......................................................................... 49
SECTION 15. Variable Accumulation Series...................................................... 49
SECTION 16. Ratification of Pooling and Servicing
Agreement; Representations; Security
Interest.......................................................................... 50
SECTION 17. Counterparts...................................................................... 50
SECTION 18. Governing Law..................................................................... 51
EXHIBITS
--------
EXHIBIT A Form of Class A Certificate
EXHIBIT B Form of Certificateholders' Payment Date
Statement
(ii)
SERIES 1997-U SUPPLEMENT dated as of October 1, 1997 (this "Series
Supplement") between FCC NATIONAL BANK, a national bank, as Seller and Servicer,
and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, a banking association
organized and existing under the laws of the United States of America (together
with its successors in trust thereunder as provided in the Agreement referred to
below, the "Trustee"), as trustee under the Pooling and Servicing Agreement
dated as of June 1, 1990 (as amended and supplemented, the "Agreement").
PRELIMINARY STATEMENT
Section 6.09 of the Agreement provides, among other things, that the
Seller and the Trustee may at any time and from time to time enter into a
supplement to the Agreement for the purpose of authorizing the issuance by the
Trustee to the Seller for execution and redelivery to the Trustee for
authentication one or more Series of Certificates. The Seller has tendered the
Exchange Notice required by subsection 6.09(b) of the Agreement and hereby
enters into this Series Supplement with the Trustee as required by subsection
6.09(c) of the Agreement to provide for the issuance of the Investor
Certificates of Series 1997-U (the "Series 1997-U Certificates"). In the event
that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the Agreement, the terms
and provisions of this Series Supplement shall govern.
All capitalized terms not otherwise defined herein are defined in the
Agreement. All Article, Section or subsection references herein shall mean
Article, Section or subsections of the Agreement, except as otherwise provided
herein. Unless otherwise stated herein, as the context otherwise requires or if
such term is otherwise defined in the Agreement, each capitalized term used or
defined herein shall relate only to the Series 1997-U Certificates and no other
Series of investor certificates issued by the Trust.
SECTION 1. Designation. The Series 1997-U Certificates shall be
-----------
issued in two classes to be designated generally as the Floating Rate Asset
Backed Certificates Series 1997-U (to be defined herein as the Class A
Certificates) and the Collateral Interest Series 1997-U (to be defined herein as
the Collateral Interest). Each
of the Class A Certificates and the Collateral Interest shall constitute a
Class of Investor Certificates; provided, however, that the Collateral Interest
-------- -------
shall be issued in uncertificated form and the provisions of Article VI and
Article XII of the Agreement relating to the registration, authentication,
delivery, presentation, cancellation and surrender of Registered Certificates
shall not be applicable thereto. In addition, solely for purposes of subsection
9.02(a) of the Agreement, holders of interests in the Cash Collateral Account
(other than the Seller) shall be deemed to be a Class of Investor Certificates.
SECTION 2. Definitions. The following words and phrases shall have
-----------
the following meaning with respect to the Series 1997-U Certificates and the
definitions of such terms are applicable to the singular as well as the plural
form of such terms and to the masculine as well as the feminine and neuter
genders of such terms:
"Accumulation Period" shall mean, with respect to the Series 1997-U
-------------------
Certificates, and provided that a Rapid Amortization Period shall not have
commenced, a period commencing on the Controlled Accumulation Date, and
continuing to the earlier of (x) but not including, the first day of the Due
Period in which a Liquidation Event is deemed to have occurred, (y) and
including, the date on which the Invested Amount is paid in full, or (z) the
Series Termination Date.
"Accumulation Period Amount" shall mean, with respect to a Due Period,
--------------------------
an amount equal to the product of (i) Available Expected Principal for such Due
Period and (ii) a fraction, the numerator of which is the Initial Invested
Amount and the denominator of which is the sum of the Initial Invested Amount
and the initial invested amounts (as defined in the respective related
Supplements) of all other Variable Accumulation Series that are not scheduled to
be in their revolving periods as of such Due Period; provided that, for purposes
of this definition, the commencement date of the accumulation period of each
such Variable Accumulation Series shall be deemed to have been postponed to the
latest permissible date, determined as if the provisions hereof applied to each
such Series with such changes as may be specified in the applicable Supplement
with respect to such Series (applying such provisions first to the Variable
Accumulation Series with the latest scheduled pay-
2
ment day and next to each Series with the next preceding scheduled payment
date).
"Accumulation Period Length" shall have the meaning specified in
--------------------------
Section 4.14 of the Agreement.
"Adjusted Available Cash Collateral Amount" shall mean, with respect
-----------------------------------------
to any Distribution Date, the Available Cash Collateral Amount for such
Distribution Date after giving effect to all withdrawals therefrom for such
Distribution Date pursuant to Section 4.06 of the Agreement.
"Adjusted Invested Amount" shall mean, with respect to any date of
------------------------
determination, an amount equal to the sum of (a) the Class A Adjusted Invested
Amount and (b) the Collateral Invested Amount.
"Available Funds" shall have the meaning specified in Section 4.06 of
---------------
the Agreement.
"Available Cash Collateral Amount" shall mean, with respect to any
--------------------------------
Distribution Date, the amount on deposit in the Cash Collateral Account after
giving effect to all deposits therein and withdrawals therefrom with respect to
the immediately preceding Distribution Date, but before giving effect to any
deposits therein or withdrawals therefrom with respect to the related
Distribution Date.
"Available Enhancement Amount" shall mean, with respect to any
----------------------------
Distribution Date, the sum of (a) the Collateral Invested Amount on the related
Determination Date and (b) the Available Cash Collateral Amount.
"Available Expected Principal" shall mean, for any date of
----------------------------
determination with respect to a Due Period, an amount equal to the excess of (a)
the Expected Monthly Principal for such Due Period over (b) the sum of, without
duplication, (i) all scheduled amortizations or accumulations of principal,
including past due shortfalls as of such date of determination, for all non-
Variable Accumulation Series that are not scheduled to be in their revolving
periods as of such Due Period and (ii) all Expected Monthly Principal
collections projected by the Servicer to be allocable to any other Series with
respect to which a Liquidation Event shall have occurred on or prior to such
date of determination.
3
"Available Reserve Account Amount" shall mean, with respect to any
--------------------------------
Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (after taking into account any interest and earnings
retained in the Reserve Account pursuant to subsection 4.16(b) on such date, but
before giving effect to any deposit made or to be made into the Reserve Account
pursuant to subsection 4.09(h) on such date) and (b) the Required Reserve
Account Amount.
"Base Rate" shall mean, with respect to any Interest Period, the
---------
annualized percentage equivalent of a fraction, the numerator of which is the
sum of (i) the Class A Monthly Interest, (ii) the Collateral Monthly Interest
and (iii) one-twelfth of the product of 2.00% and the Adjusted Invested Amount
for such Interest Period, and the denominator of which is the Invested Amount
for such Interest Period.
"Cash Collateral Account" shall have the meaning specified in Section
-----------------------
4.11 of the Agreement.
"Cash Collateral Account Surplus" shall mean, upon the occurrence of a
-------------------------------
Conversion Deposit and after the reduction of the Collateral Invested Amount to
zero, the excess of the amount on deposit in the Cash Collateral Account over
the Required Cash Collateral Account.
"Class A Additional Interest" shall have the meaning specified in
---------------------------
Section 4.04 of the Agreement.
"Class A Adjusted Invested Amount" shall mean, on any date of
--------------------------------
determination, an amount equal to the Class A Invested Amount minus the
-----
Principal Funding Account Balance on such date of determination.
"Class A Available Funds" shall mean, with respect to any Due Period,
-----------------------
an amount equal to the sum of (i) the Class A Floating Percentage of the
Floating Allocation Percentage of Collections of Finance Charge Receivables
(including any amounts that are to be treated as Collections of Finance Charge
Receivables in accordance with the Agreement), (ii) Principal Funding
Investment Proceeds, up to the Covered Amount for such Due Period, and (iii) if
applicable for such Due Period, the Reserve Draw Amount, up to the Available
Reserve Account Amount.
4
"Class A Available Principal Collections" shall mean, with respect to
---------------------------------------
any Distribution Date, the sum of (a) the Class A Principal Percentage of the
Invested Percentage of Collections of Principal Receivables, (b)
the amount, if any, of Unallocated Principal Collections on deposit in the
Collection Account allocated to the Series 1997-U Certificates pursuant to
subsection 4.01(f) of the Agreement, (c) Excess Principal Collections
allocated to the Series 1997-U Certificates pursuant to subsection 4.05(c) of
the Agreement and (d) any other amounts which are to be treated as Class A
Available Principal Collections in accordance with the provisions hereof
(including, but not limited to, amounts allocable pursuant to subsections
4.07(a)(iii), 4.07(d)(ii), 4.07(f)(ii), 4.07(g) and 4.09(b)).
"Class A Certificate" shall mean any one of the Certificates executed
-------------------
by the Seller and authenticated by or on behalf of the Trustee, substantially in
the form of Exhibit A hereto.
---------
"Class A Certificate Rate" shall mean for the period from the Closing
------------------------
Date through, and including November 16, 1997, 5.74% per annum, and for each
Interest Period thereafter, a per annum rate of .115% in excess of LIBOR
determined on the related LIBOR Determination Date, calculated on the basis of
actual days elapsed and a 360-day year.
"Class A Certificateholder" shall mean the Holder of record of a Class
-------------------------
A Certificate.
"Class A Covered Amount" shall have the meaning specified in
----------------------
subsection 4.06(a) of the Agreement.
"Class A Floating Percentage" shall mean, with respect to any
---------------------------
Distribution Date, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Class A Adjusted
Invested Amount for such Distribution Date and the denominator of which is the
Adjusted Invested Amount for such Distribution Date.
"Class A Initial Invested Amount" shall mean $400,000,000.
-------------------------------
"Class A Interest Shortfall Amount" shall have the meaning specified
---------------------------------
in Section 4.04 of the Agreement.
5
"Class A Invested Amount" shall mean, on any date of determination, an
-----------------------
amount equal to (a) the Class A Initial Invested Amount, minus (b) the aggregate
-----
amount of principal payments made to the Class A Certificateholders prior to
such date, minus (c) the excess, if any, of the aggregate amount of Class A
-----
Investor Charge-Offs for all prior Distribution Dates over the aggregate amount
of Class A Investor Charge-Offs reimbursed pursuant to Section 4.09 of the
Agreement prior to such date.
"Class A Investor Charge-Offs" shall have the meaning specified in
----------------------------
Section 4.08 of the Agreement.
"Class A Investor Default Amount" shall mean, with respect to each
-------------------------------
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for such Distribution Date and (ii) the Class A Floating Percentage for
such Distribution Date.
"Class A Monthly Interest" shall have the meaning specified in Section
------------------------
4.04 of the Agreement.
"Class A Monthly Principal" shall have the meaning specified in
-------------------------
Section 4.05 of the Agreement.
"Class A Principal Percentage" shall mean, with respect to any
----------------------------
Distribution Date (i) relating to the Revolving Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which is the Class A Invested Amount for such Distribution Date,
and the denominator of which is the Invested Amount for such Distribution Date
and (ii) relating to the Accumulation Period or the Rapid Amortization Period,
the percentage equivalent (which percentage shall never exceed 100%) of a
fraction, the numerator of which is the Class A Invested Amount as of the end of
the day on the last Distribution Date relating to the Revolving Period, and the
denominator of which is the Invested Amount as of such day.
"Class A Required Amount" shall have the meaning specified in Section
-----------------------
4.06 of the Agreement.
"Class A Scheduled Payment Date" shall mean the October 2002
------------------------------
Distribution Date.
"Closing Date" shall mean October 30, 1997.
------------
6
"Collateral Additional Interest" shall have the meaning specified in
------------------------------
Section 4.04 of the Agreement.
"Collateral Available Funds" shall mean, with respect to any Due
--------------------------
Period, an amount equal to the Collateral Floating Percentage of the Floating
Allocation Percentage of Collections of Finance Charge Receivables (including
any amounts that are to be treated as Collections of Finance Charge Receivables
in accordance with the Agreement).
"Collateral Default Amount" shall mean, with respect to each
-------------------------
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for such Distribution Date and (ii) the Collateral Floating Percentage
for such Distribution Date.
"Collateral Floating Percentage" shall mean, with respect to any
------------------------------
Distribution Date, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Collateral Invested
Amount for such Distribution Date, and the denominator of which is the
Invested Amount for such Distribution Date.
"Collateral Initial Invested Amount" shall mean $57,142,858.
----------------------------------
"Collateral Invested Amount" shall mean, for any date of
--------------------------
determination, an amount equal to (a) the Collateral Initial Invested Amount,
minus (b) an amount equal to the amount by which the Collateral Invested Amount
-----
has been reduced on all prior Distribution Dates pursuant to Section 4.08 of the
Agreement, minus (c) the aggregate amount of Collateral Monthly Principal
-----
applied in accordance with the Loan Agreement pursuant to Section 4.07 of the
Agreement or deposited into the Cash Collateral Account pursuant to subsection
4.11(e) of the Agreement prior to such date; provided, however, that the
-------- -------
Collateral Invested Amount may not be reduced below zero.
"Collateral Interest" shall mean a fractional undivided interest in
-------------------
the Trust which shall consist of the right to receive, to the extent necessary
to make the required payments to the Collateral Interest Holder under this
Supplement, the portion of Collections allocable thereto under the Agreement and
funds on deposit in the Collection Account allocable thereto pursuant to the
Agreement.
7
"Collateral Interest Holder" shall mean the entity so designated in
--------------------------
the Loan Agreement.
"Collateral Interest Shortfall Amount" shall have the meaning
------------------------------------
specified in Section 4.04 of the Agreement.
"Collateral Monthly Interest" shall have the meaning specified in
---------------------------
Section 4.04 of the Agreement.
"Collateral Monthly Principal" shall have the meaning specified in
----------------------------
Section 4.05 of the Agreement.
"Collateral Principal Collections" shall mean, with respect to any Due
--------------------------------
Period, the Collateral Principal Percentage of the Invested Percentage of
Collections of Principal Receivables, plus any other amounts which are to be
----
treated as Collateral Principal Collections in accordance with the provisions
hereof, minus the amount of Reallocated Principal Collections with respect to
-----
such Due Period.
"Collateral Principal Percentage" shall mean, with respect to any
-------------------------------
Distribution Date (i) relating to the Revolving Period, the percentage
equivalent (which percentage shall never exceed 100%) of a fraction, the
numerator of which is the Collateral Invested Amount for such Distribution Date,
and the denominator of which is the Invested Amount for such Distribution Date
and (ii) relating to the Accumulation Period or the Rapid Amortization Period,
the percentage equivalent (which percent age shall never exceed 100%) of a
fraction, the numerator of which is the Collateral Invested Amount as of the end
of the day on the last Distribution Date relating to the Revolving Period, and
the denominator of which is the Invested Amount as of such day.
"Collateral Rate" shall mean the rate designated as such in the Loan
---------------
Agreement.
"Controlled Accumulation Amount" shall mean one-twelfth of the Class A
------------------------------
Initial Invested Amount; provided, however, that if the Accumulation Period
-------- -------
Length is determined to be less than 12 months pursuant to Section 4.14 of the
Agreement, the Controlled Accumulation Amount shall mean the amount determined
in accordance with such Section.
8
"Controlled Accumulation Date" shall mean the first day of the Due
----------------------------
Period relating to the November 2001 Distribution Date or such later date as is
determined in accordance with Section 4.14 of the Agreement.
"Controlled Deposit Amount" shall mean, with respect to any
-------------------------
Distribution Date relating to the Accumulation Period, an amount equal to the
sum of the Controlled Accumulation Amount and any existing Deficit Controlled
Accumulation Amount.
"Conversion Deposit" shall have the meaning specified in subsection
------------------
4.11(e) of the Agreement.
"Conversion Event" shall mean any event that the Seller, in its sole
----------------
discretion, shall determine makes it advisable that the Collateral Invested
Amount no longer be Enhancement.
"Covered Amount" shall mean an amount, determined as of each
--------------
Distribution Date with respect to any Interest Period, equal to the product of
(i) a fraction, the numerator of which is the actual number of days in such
Interest Period and the denominator of which is 360, times (ii) the Class A
-----
Certificate Rate in effect with respect to such Interest Period, times (iii) the
-----
Principal Funding Account Balance as of the Record Date preceding such
Distribution Date.
"Deficit Controlled Accumulation Amount" shall mean, on the first
--------------------------------------
Distribution Date with respect to the Accumulation Period, the excess, if any,
of the Controlled Accumulation Amount over the amount of Class A Monthly
Principal for such Distribution Date and, on each subsequent Distribution Date
with respect to the Accumulation Period, the excess, if any, of the Controlled
Deposit Amount over the amount of Class A Monthly Principal for such
Distribution Date.
"Eligible Institution" shall have the meaning specified in Section
--------------------
1.01 of the Agreement, except that the reference therein to "First Chicago"
shall instead be to "the Servicer."
"Enhancement" shall mean the Cash Collateral Account and the
-----------
Collateral Invested Amount.
"Enhancement Provider" shall mean the Collateral Interest Holder.
--------------------
9
"Enhancement Surplus" shall mean, with respect to any Distribution
-------------------
Date, the amount by which the Collateral Invested Amount may be reduced on such
Distribution Date so that the sum of (i) the Adjusted Available Cash Collateral
Amount (after giving effect to any deposits pursuant to subsection 4.09(f) for
such Distribution Date), (ii) the Collateral Invested Amount (after giving
effect to any reductions thereof on such Distribution Date pursuant to Section
4.08 of the Agreement) as reduced by such Enhancement Surplus and (iii) the
Optional Deposit for such Distribution Date, if any, equals the Required
Enhancement Amount (computed as if the Collateral Invested Amount was reduced
by such Enhancement Surplus and subject to the proviso contained in the
definition of Required Enhancement Amount).
Algebraically, if the Required Enhancement Amount for the Distribution
Date is computed pursuant to clause (i) of the definition thereof, the
Enhancement Surplus shall be represented as:
.135 (AIA + (CIA-X)) = ACCA + (CIA-X)
where,
X = the Enhancement Surplus;
AIA = the Class A Adjusted Invested Amount at the end of such
Distribution Date;
ACCA = the Adjusted Available Cash Collateral Amount (after giving effect
to any deposit pursuant to subsection 4.09(f) or Optional Deposit
on such Distribution Date); and
CIA = the Collateral Invested Amount on such Distribution Date (after
giving effect to any reductions thereof pursuant to Section 4.08).
Algebraically, if the Required Enhancement Amount for the Distribution
Date is computed pursuant to clause (ii) of the definition thereof, the
Enhancement Surplus shall be represented as:
$4,571,429 + 2($4,571,429 - ACCA) = ACCA + (CIA-X)
where,
10
X = the Enhancement Surplus;
ACCA = the Adjusted Available Cash Collateral Amount (after giving effect
to any deposit pursuant to Section 4.09(f) or Optional Deposit on
such Distribution Date); and
CIA = the Collateral Invested Amount on such Distribution Date (after
giving effect to any reductions thereof pursuant to Section 4.08).
"Excess Finance Charge Collections" shall have the meaning specified
---------------------------------
in subsection 4.04(c) of the Agreement.
"Excess Principal Collections" shall have the meaning specified in
----------------------------
subsection 4.05(c) of the Agreement.
"Excess Principal Funding Investment Proceeds" shall mean, with
--------------------------------------------
respect to each Distribution Date, the amount, if any, by which the Principal
Funding Investment Proceeds for such Distribution Date exceed the Covered Amount
determined for such Distribution Date.
"Excess Spread" shall mean, with respect to any Distribution Date,
-------------
the sum of the amounts, if any, specified in subsections 4.07(a)(iv) and
4.07(b).
"Expected Monthly Principal" shall mean, for a Due Period, an amount
--------------------------
equal to the product of (a) the lowest of the monthly principal payment rates
(determined by dividing Collections of Principal Receivables with respect to a
Due Period by the amount of Aggregate Principal Receivables as of the last day
of the immediately preceding Due Period), expressed as a decimal, for the 12 Due
Periods immediately preceding the Determination Date with respect to the October
2001 Distribution Date (including the Due Period related to the October 2001
Distribution Date)(or such lower principal payment rate as the Servicer may
select) and (b) the sum of the initial invested amounts (as defined in the
respective related Supplements) of all then outstanding Series.
"Fixed Allocation Percentage" shall mean, with respect to any
---------------------------
Distribution Date relating to the Amortization Period or any Rapid Amortization
Period, the percentage equivalent of a fraction, the numerator of which is the
Invested Amount as of the end of the day on
11
the last Distribution Date relating to the Revolving Period and the denominator
of which is the greater of (a) Aggregate Principal Receivables for the Due
Period related to the current Distribution Date and (b) the sum of the
numerators used to calculate the Invested Percentages with respect to Principal
Receivables for all Series of investor certificates outstanding for the current
Distribution Date.
"Floating Allocation Percentage" shall mean, with respect to any
------------------------------
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the Adjusted Invested Amount for such Distribution Date, and the
denominator of which is Aggregate Principal Receivables for the Due Period
related to such Distribution Date.
"Initial Invested Amount" shall mean the sum of the Class A Initial
-----------------------
Invested Amount and the Collateral Initial Invested Amount.
"Interchange" shall mean the interchange fees payable to the Seller,
-----------
in its capacity as credit card issuer, through VISA USA, Inc. and MasterCard
International Incorporated in connection with cardholder charges for goods and
services.
"Interchange Amount" shall mean, for any Distribution Date, the
------------------
amount of Interchange paid or payable to the Seller with respect to the second
calendar month preceding the month in which the Distribution Date occurs
multiplied by a fraction the numerator of which is the aggregate amount of
cardholder sales charges for goods and services in the Accounts with respect to
the second preceding Due Period and the denominator of which is the aggregate
amount of cardholder charges for goods and services in all the "MasterCard" and
"VISA" consumer revolving credit card accounts of the Seller with respect to
such second preceding Due Period.
"Interchange Monthly Servicing Fee" shall have the meaning specified
---------------------------------
in subsection 4.12(b) of the Agreement.
"Interest Period" shall mean, with respect to any Distribution Date,
---------------
the period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date,
12
from and including the Closing Date) to but excluding such Distribution Date.
"Invested Amount" shall mean, with respect to any date of
---------------
determination, an amount equal to the sum of (a) the Class A Invested Amount and
(b) the Collateral Invested Amount.
"Invested Percentage" shall mean, on any date of determination with
-------------------
respect to any Distribution Date: (a) when used with respect to Principal
Receivables during the Accumulation Period or the Rapid Amortization Period, the
Fixed Allocation Percentage; and (b) when used with respect to Principal
Receivables during the Revolving Period and Finance Charge Receivables and
Defaulted Receivables at any time, the Floating Allocation Percentage.
"Investor Default Amount" shall mean, with respect to each
-----------------------
Distribution Date, an amount equal to the product of the Defaulted Amount for
such Distribution Date and the Invested Percentage applicable for such
Distribution Date.
"LIBOR" shall mean, for any Interest Period other than the initial
-----
Interest Period from the Closing Date through, and including, November 16, 1997,
the London interbank offered rate for one-month deposits of Dollars determined
by the Servicer for each Interest Period in accordance with the provisions of
Section 4.13 of the Agreement.
"LIBOR Determination Date" shall mean October 28, 1997 for the period
------------------------
from October 30, 1997 through, and including, November 16, 1997; November 13,
1997 for the period from November 17, 1997 through, and including, December 14,
1997; and the second London Business Day prior to the commencement of each
subsequent Interest Period.
"Loan Agreement" shall mean the Loan Agreement among the Seller, the
--------------
Servicer, the Trustee and the Collateral Interest Holder, dated the Closing
Date, as amended, supplemented or otherwise modified from time to time in
accordance with its terms.
"London Business Day" shall mean any Business Day other than a
-------------------
Business Day on which banking institutions in London, England dealing in
deposits in United
13
States Dollars are authorized or obligated by law or executive order to be
closed.
"Monthly Servicing Fee" shall mean the share of the Servicing Fee
---------------------
allocable to the Series 1997-U Certificates with respect to any Distribution
Date, which shall be equal to one-twelfth of the product of (a) the Servicing
Fee Percentage and (b) the Adjusted Invested Amount on the prior Distribution
Date after giving effect to any payment or deposit of principal on such prior
Distribution Date (or, in the case of the first Distribution Date, the Initial
Invested Amount).
"Optional Deposit" shall have the meaning specified in subsection
----------------
4.11(d) of the Agreement.
"Payment Date" shall mean any Distribution Date, commencing December
------------
15, 1997, and the Termination Payment Date.
"Portfolio Yield" shall mean, with respect to any Due Period, the
---------------
annualized percentage equivalent of a fraction the numerator of which is equal
to (a) the Floating Allocation Percentage of the Collections of Finance Charge
Receivables (including Interchange) during such Due Period, calculated on a cash
basis, plus (b) Principal Funding Investment Proceeds for such Due Period,
----
plus (c) the amount, if any, withdrawn from the Reserve Account and included in
----
Class A Available Funds for the Distribution Date relating to such Due Period,
minus (d) the Investor Default Amount for such Due Period, and the denominator
-----
of which is the Invested Amount for the Distribution Date related to such Due
Period.
"Principal Funding Account" shall have the meaning specified in
-------------------------
subsection 4.15(a) of the Agreement.
"Principal Funding Account Balance" shall mean, with respect to any
---------------------------------
date of determination, the principal amount, if any, on deposit in the Principal
Funding Account on such date of determination as provided in Section 4.15(d).
"Principal Funding Investment Proceeds" shall mean, with respect to
-------------------------------------
each Distribution Date, the investment earnings on funds in the Principal
Funding Account (net of investment expenses and losses) for the period from and
including the Transfer Date relating to the
14
immediately preceding Distribution Date to but excluding the Transfer Date
relating to such Distribution Date.
"Principal Funding Investment Shortfall" shall mean, with respect to
--------------------------------------
each Distribution Date relating to the Accumulation Period or the first
Distribution Date with respect to the Rapid Amortization Period, the amount, if
any, by which the Principal Funding Investment Proceeds for such Distribution
Date are less than the Covered Amount determined for such Distribution Date.
"Principal Shortfall" shall have the meaning specified in Section
-------------------
4.03 of the Agreement.
"Rapid Amortization Period" shall mean, with respect to the Series
-------------------------
1997-U Certificates, a period beginning on the first day of the Due Period in
which a Liquidation Event is deemed to occur and continuing to and including the
earlier of (a) the date on which the Invested Amount is paid in full or (b) the
Series Termination Date.
"Rating Agency" shall mean, with respect to Series 1997-U, the rating
-------------
agency or agencies rating any Class of the Series 1997-U Certificates at the
request of the Seller, including Xxxxx'x, Standard & Poor's and Fitch Investors
Service, L.P.
"Rating Agency Condition" shall mean the notification in writing by
-----------------------
each Rating Agency to the Seller, the Servicer and the Trustee that an action
will not result in such Rating Agency reducing or withdrawing its then existing
rating of the Investor Certificates of any outstanding Series or Class of a
Series with respect to which it is a Rating Agency.
"Reallocated Principal Collections" shall mean, with respect to any
---------------------------------
Due Period, the Collateral Principal Percentage of the Invested Percentage of
Collections of Principal Receivables but only to the extent that such
Collections of Principal Receivables are actually distributed pursuant to
subsection 4.10(a) of the Agreement.
"Record Date" shall mean, with respect to any Distribution Date, the
-----------
last day of the calendar month immediately preceding such Distribution Date.
"Reference Banks" shall mean four major banks in the London interbank
---------------
market selected by the Servicer
15
and identified in an Officer's Certificate delivered to the Trustee on the
Closing Date or in any subsequent Officer's Certificate delivered no later than
one Business Day prior to the then current LIBOR Determination Date.
"Required Cash Collateral Amount" shall mean, with respect to any
-------------------------------
Distribution Date, the Required Enhancement Amount, minus the Collateral
-----
Invested Amount after giving effect to all reductions of the Collateral Invested
Amount with respect to such Distribution Date pursuant to Section 4.08 and any
reductions of the Collateral Invested Amount with respect to such Distribution
Date pursuant to Section 4.07 other than as a result of any Enhancement Surplus
due to any Optional Deposit.
"Required Enhancement Amount" shall mean, with respect to any
---------------------------
Distribution Date, the greater of (i) the product of (a) the Adjusted Invested
Amount as of such Distribution Date after taking into account all distributions
and reductions to be made on such Distribution Date, and (b) 13.5% and (ii) the
sum of (A) $4,571,429 and (B) the product of (I) two and (II) the excess, if
any, of $4,571,429 over the Adjusted Available Cash Collateral Amount; provided
--------
however, that (i) if there are any withdrawals from the Cash Collateral Account
-------
pursuant to Section 4.06 of the Agreement or any reductions in the Collateral
Invested Amount pursuant to clause (b) of the definition of such amount, or a
Liquidation Event occurs with respect to the Series 1997-U Certificates, then
the Required Enhancement Amount for any Distribution Date shall equal the
Required Enhancement Amount on the Distribution Date immediately preceding such
withdrawal, reduction or Liquidation Event, (ii) in no event shall the Required
Enhancement Amount exceed the Class A Adjusted Invested Amount on any such
Distribution Date, and (iii) the Required Enhancement Amount may be reduced
without the consent of the Class A Certificateholders or the Collateral Interest
Holder, if the Seller shall have received written notice from each Rating Agency
(with a copy delivered to the Trustee) that such reduction will not result in
the reduction or withdrawal of the then current rating of any Class of Series
1997-U Certificates rated by such Rating Agency and the Seller shall have
delivered to the Trustee an Officer's Certificate to the effect that, based on
the facts known to such officer at such time, in the reasonable belief of the
Seller, such reduction will not cause a Liquidation Event or an event that,
after the giving of notice or the lapse of time,
16
would constitute a Liquidation Event, to occur with respect to the Series 1997-
U Certificates.
"Required Reserve Account Amount" shall mean, with respect to any
-------------------------------
Distribution Date on or after the Reserve Account Funding Date, an amount equal
to (a) 0.25% of the Class A Invested Amount or (b) any other amount designated
by the Seller; provided, however, that if such designation is of a lesser
-------- -------
amount, the Seller shall (i) provide the Servicer, the Collateral Interest
Holder and the Trustee with evidence that the Rating Agency Condition shall have
been satisfied and (ii) deliver to the Trustee an Officers' Certificate to the
effect that, based on the facts known to such officers at such time, in the
reasonable belief of the Seller, such designation will not cause a Liquidation
Event or an event that, after the giving of notice or the lapse of time, would
cause a Liquidation Event to occur with respect to Series 1997-U.
"Reserve Account" shall have the meaning specified in subsection
---------------
4.16(a) of the Agreement.
"Reserve Account Funding Date" shall mean the August 2001 Distribution
----------------------------
Date.
"Reserve Account Surplus" shall mean, as of any Distribution Date
-----------------------
following the Reserve Account Funding Date, the amount, if any, by which the
amount on deposit in the Reserve Account exceeds the Required Reserve Account
Amount.
"Reserve Draw Amount" shall have the meaning specified in subsection
-------------------
4.16(c).
"Revolving Period" shall mean, with respect to the Series 1997-U
----------------
Certificates, the period from and including the Closing Date up to and
including the day prior to the day on which the Accumulation Period or, if
earlier, the Rapid Amortization Period commences.
"Series E Certificates" or "Series 1992-E" shall mean the 6.25% Asset
--------------------- -------------
Backed Certificates Series 1992-E.
"Series I Certificates" or "Series 1994-I" shall mean the Floating
--------------------- -------------
Rate Asset Backed Certificates Series 1994-I.
17
"Series J Certificates" or "Series 1994-J" shall mean the Floating
--------------------- -------------
Rate Asset Backed Certificates Series 1994-J.
"Series K Certificates" or "Series 1994-K" shall mean the Floating
--------------------- -------------
Rate Credit Card Certificates Series 1994-K.
"Series L Certificates" or "Series 1994-L" shall mean the 7.15%
--------------------- -------------
Credit Card Certificates Series 1994-L.
"Series M Certificates" or "Series 1995-M" shall mean the Floating
--------------------- -------------
Rate Credit Card Certificates Series 1995-M.
"Series N Certificates" or "Series 1995-N" shall mean the Floating
--------------------- -------------
Rate Credit Card Certificates Series 1995-N.
"Series O Certificates" or "Series 1995-O" shall mean the Floating
--------------------- -------------
Rate Credit Card Certificates Series 1995-O.
"Series P Certificates" or "Series 1995-P" shall mean the Floating
--------------------- -------------
Rate Credit Card Certificates Series 1995-P.
"Series Q Certificates" or "Series 1996-Q" shall mean the Floating
--------------------- -------------
Rate Asset Backed Certificates Series 1996-Q.
"Series R Certificates" or "Series 1996-R" shall mean the Floating
--------------------- -------------
Rate Asset Backed Certificates Series 1996-R.
"Series S Certificates" or "Series 1996-S" shall mean the Floating
--------------------- -------------
Rate Asset Backed Certificates Series 1996-S.
"Series T Certificates" or "Series 1997-T" shall mean the Floating
--------------------- -------------
Rate Asset Backed Certificates Series 1997-T.
"Series 1997-U Certificateholder" shall mean the Holder of record of a
-------------------------------
Class A Certificate or the Collateral Interest Holder.
18
"Series 1997-U Certificateholders' Interest" shall have the meaning
------------------------------------------
specified in Section 4.02 of the Agreement.
"Series Termination Date" shall mean the November 2004 Distribution
-----------------------
Date.
"Servicing Fee Percentage" shall mean 0.75% per annum.
------------------------
"Shortfall Amount" shall have the meaning specified in Section 4.04
----------------
of the Agreement.
"Telerate Page 3750" shall mean the display page currently so
------------------
designated on the Dow Xxxxx Telerate Service (or such other page as may replace
such page on such service for the purpose of displaying comparable rates or
prices).
"Termination Payment Date" shall mean the earlier of (a) the
------------------------
Distribution Date on which final payment has been made on the Series 1997-U
Certificates and (b) the Series Termination Date.
"Variable Accumulation Series" shall mean each then outstanding Series
----------------------------
(including, but not limited to, Series 1997-U), other than Series 1997-U, for
which, pursuant to the terms of the related Supplement, the commencement date of
its accumulation period or amortization period may be changed.
"Withdrawal Amount" shall mean, with respect to the Class A
-----------------
Certificates, and with respect to any Distribution Date, the lesser of (a) the
Class A Required Amount calculated for such Distribution Date and (b) the
Available Cash Collateral Amount calculated for such Distribution Date.
SECTION 3. Minimum First Chicago Interest Percentage and Minimum
-----------------------------------------------------
Aggregate Principal Receivables. The Minimum First Chicago Interest Percentage
-------------------------------
applicable to the Series 1997-U Certificates shall be 7% (unless (a) the Rating
Agencies confirm in writing that a lower percentage will not cause a reduction
or withdrawal of the then rating of any Class of Series 1997-U Certificates and
(b) the Seller receives an Opinion of Counsel that such reduction will not
adversely affect the Federal income tax characterization of the Series 1997-U
Certificates or any other outstanding investor certificates, or
19
be treated as an exchange within the meaning of Section 1001 of the Code). The
Minimum Aggregate Principal Receivables shall be the sum of (i) the Initial
Invested Amount and (ii) the initial invested amounts of all other Series then
outstanding or, if any Series calculates the invested percentage with respect to
Principal Receivables by means of a numerator based other than on the initial
invested amount of such Series, then at least equal to the sum of the initial
invested amount of each Series then outstanding which calculates such invested
percentage on the basis of initial invested amount plus, for each other Series
then outstanding, the then current numerator used to calculate the invested
percentage with respect to Principal Receivables for such Series.
SECTION 4. Reassignment and Transfer Terms. The Series 1997-U
-------------------------------
Certificates may be reassigned and transferred to the Seller on any Distribution
Date in the Amortization Period or the Rapid Amortization Period on or after the
Invested Amount is reduced to an amount less than or equal to 5% of the Initial
Invested Amount in accordance with the terms specified in subsection 12.02(a) of
the Agreement, subject to any limitation specified in the Loan Agreement. The
repurchase price of any such repurchase shall be equal to the Adjusted Invested
Amount plus accrued and unpaid interest on the Series 1997-U Certificates
through the Distribution Date on which the repurchase occurs.
SECTION 5. Delivery and Payment for the Series 1997-U Certificates.
-------------------------------------------------------
The Trustee shall deliver the Class A Certificates when authenticated in
accordance with Section 6.02 of the Agreement. The Collateral Interest shall be
acquired in accordance with the Loan Agreement.
SECTION 6. Form of Delivery of the Series 1997-U Certificates. The
--------------------------------------------------
Class A Certificates shall be delivered as Book Entry Certificates as provided
in Section 6.01 of the Agreement. The Collateral Interest shall be delivered in
uncertificated form as provided in the Loan Agreement.
SECTION 7. Article IV of Agreement. Any provision of Article IV of the
-----------------------
Agreement which distributes Collections to the Seller on the basis of the
Seller's Percentage shall continue to apply irrespective of the issuance of the
Series 1997-U Certificates. With respect to the Series 1997-U Certificates,
Article IV of
20
the Agreement (except for Section 4.01 thereof) shall read as follows:
ARTICLE IV
RIGHTS OF CERTIFICATEHOLDERS AND
ALLOCATION AND APPLICATION OF COLLECTIONS
Section 4.02 Rights of Series 1997-U Certificateholders. The Investor
--------------------------------------------
Certificates of Series 1997-U shall represent fractional Undivided Interests in
the Trust, consisting of the right to receive, to the extent necessary to make
the required payments with respect to such Investor Certificates at the times
and in the amounts specified in this Agreement, (a) the related Invested
Percentage of Collections received with respect to the Receivables (including
the Interchange Amount allocable to the Series 1997-U Certificateholders), (b)
funds on deposit in the Collection Account, (c) funds on deposit in the Cash
Collateral Account, (d) funds on deposit in the Principal Funding Account and
(e) funds on deposit in the Reserve Account (the "Series 1997-U
Certificateholders' Interest"). The Exchangeable Seller's Certificate and any
other Series of investor certificates outstanding shall represent fractional
Undivided Interests in the Trust Assets not allocated pursuant to this Agreement
to the Series 1997-U Certificateholders' Interest, including the right to
receive Collections with respect to the Receivables and other amounts at the
times and in the amounts specified in this Article IV to be paid to the Holder
of the Exchangeable Seller's Certificate; provided, however, such interests
-------- -------
shall not represent any interest in the Cash Collateral Account, the Principal
Funding Account or the Reserve Account or funds on deposit therein.
Section 4.03 Collections and Allocations.
---------------------------
(a) Collections. The Trustee will apply or will instruct the
-----------
Servicer to apply all funds on deposit in the Collection Account as described in
this Article IV.
(b) Payments to the Holder of the Exchangeable Seller's
---------------------------------------------------
Certificate. On each Determination Date preceding a Distribution Date, the
-----------
Servicer shall determine whether a Liquidation Event is deemed to have occurred
in the Due Period relating to such Determination
21
Date with respect to the Series 1997-U Certificates, and the Servicer shall
allocate Collections with respect to the Due Period for such Distribution Date
to the Holder of the Exchangeable Seller's Certificate as follows:
(i) for Determination Dates with respect to the Revolving
Period, in addition to amounts allocated to the Holder of the Exchangeable
Seller's Certificate pursuant to subsection 4.01(d) of the Agreement, an
amount equal to the Invested Percentage for the Distribution Date of the
aggregate amount of such Collections in respect of Principal Receivables,
but not exceeding the First Chicago Amount (determined as of such
Determination Date after giving effect to any Principal Receivables
transferred to the Trust for the Due Period relating to such Determination
Date), and excluding any such Collections to be applied as Collateral
Monthly Principal pursuant to Section 4.07 and any Reallocated Principal
Collections;
(ii) for Determination Dates with respect to the Accumulation
Period, an amount equal to the excess of the Invested Percentage for the
Distribution Date of the aggregate amount of such Collections in respect of
Principal Receivables over the related Controlled Deposit Amount, but not
exceeding the First Chicago Amount (determined as of such Determination
Date after giving effect to any Principal Receivables transferred to the
Trust for the Due Period relating to such Determination Date), and
excluding any such Collections to be applied as Collateral Monthly
Principal pursuant to Section 4.07 and any Reallocated Principal
Collections; and
(iii) for Determination Dates with respect to any Rapid
Amortization Period, the amount of payments made to the Holder of the
Exchangeable Seller's Certificate shall be determined only as provided in
subsection 4.01(d) of the Agreement;
provided, however, that in the event that principal shall be payable to or for
-------- -------
the benefit of other Series on such Distribution Date, and amounts allocable to
such Series
22
are not sufficient to make the maximum principal payment which could be made
under the terms of the applicable Supplement to the certificateholders of such
Series for such Distribution Date (such deficiencies, "Principal Shortfalls"),
amounts otherwise allocable to the Holder of the Exchangeable Seller's
Certificate pursuant to this subsection 4.03(b) shall instead be paid to or for
the benefit of such other Series on a pro rata basis (based on the numerator
used in calculating the invested percentage of Collections of Principal
Receivables for such Series) if such other Series provide for the sharing of
Collections of Principal Receivables to pay Principal Shortfalls.
The allocations to be made pursuant to this Section 4.03 also
apply to deposits into the Collection Account that are treated as Collections,
including Transfer Deposit Amounts, Excess Finance Charge Collections,
Adjustment Payments, proceeds from the sale, disposition or liquidation of the
Receivables pursuant to Section 9.02, 10.01, 12.01 or 12.02 of the Agreement and
Section 4 of this Series Supplement and the Interchange Amount allocable to the
Series 1997-U Certificateholders. Such deposits to be treated as Collections
will be allocated as Finance Charge Receivables or Principal Receivables as
indicated in the Agreement. For purposes of this Series Supplement, the
Interchange Amount shall be treated as Finance Charge Receivables, except that a
portion of the Interchange Amount shall be available solely to pay the Servicer
the Interchange Monthly Servicing Fee pursuant to subsection 4.12(b) of the
Agreement.
Section 4.04 Determination of Monthly Interest for the Series 1997-U
-------------------------------------------------------
Certificates. (a) The amount of monthly interest ("Class A Monthly Interest")
------------
distributable from the Collection Account with respect to the Class A
Certificates on any Distribution Date commencing with the December 1997
Distribution Date shall be an amount equal to the product of (i)(A) a fraction,
the numerator of which is the actual number of days in the related Interest
Period and the denominator of which is 360, times (B) the Class A Certificate
Rate in effect with respect to the related Interest Period, and (ii) the Class A
Invested Amount determined as of the Record Date preceding such Distribution
Date (or in the case of the November 1997 Distribution Date, the Class A Initial
Invested Amount); provided, however, that Class A Monthly Interest for the
-------- -------
December 1997 Distribution Date shall be
23
the sum of the amounts calculated pursuant to clauses (i) and (ii) above for the
Interest Period from and including the Closing Date to but excluding the
November 1997 Distribution Date and for the Interest Period from and including
the November 1997 Distribution Date to but excluding the December 1997
Distribution Date.
On each Determination Date preceding a Distribution Date,
commencing with the December 1997 Distribution Date, the Servicer shall
determine the amount (the "Class A Interest Shortfall Amount"), if any, of the
excess of Class A Monthly Interest over the amount that will be on deposit in
----
the Collection Account on such Distribution Date and available for payment of
Class A Monthly Interest. An additional amount ("Class A Additional Interest")
shall be payable as provided herein with respect to Class A Certificates on each
Distribution Date following such Distribution Date, to and including the
Distribution Date on which such Class A Interest Shortfall Amount is paid in
full, in an amount equal to the product of (i)(A) a fraction, the numerator of
which is the actual number of days in the related Interest Period and the
denominator of which is 360, times (B) the Class A Certificate Rate in effect
with respect to the related Interest Period plus 2% per annum and (ii) the
unpaid portion of such Class A Interest Shortfall Amount.
(b) The amount of monthly interest ("Collateral Monthly
Interest") distributable from the Collection Account with respect to the
Collateral Interest on any Distribution Date commencing with the December 1997
Distribution Date shall be an amount equal to the product of (i)(A) a fraction,
the numerator of which is the actual number of days in the related Interest
Period and the denominator of which is 360, times (B) the Collateral Rate in
effect with respect to the related Interest Period and (ii) the Collateral
Invested Amount determined as of the Record Date preceding such Distribution
Date (or in the case of the November 1997 Distribution Date, the Collateral
Initial Invested Amount); provided, however, that Collateral Monthly Interest
-------- -------
for the December 1997 Distribution Date shall be the sum of the amounts
calculated pursuant to clauses (i) and (ii) above for the Interest Period from
and including the Closing Date to but excluding the November 1997 Distribution
Date and for the Interest Period from and including the November 1997
Distribution Date to but excluding the December 1997 Distribution Date.
24
On each Determination Date preceding a Distribution Date,
commencing with the December 1997 Distribution Date, the Servicer shall
determine the amount (the "Collateral Interest Shortfall Amount"), if any, of
the excess of Collateral Monthly Interest over the amount that will be on
----
deposit in the Collection Account on such Distribution Date and available for
payment of Collateral Monthly Interest. An additional amount ("Collateral
Additional Interest") shall be payable as provided herein with respect to the
Collateral Interest on each Distribution Date following such Distribution Date,
to and including the Distribution Date on which such Collateral Interest
Shortfall Amount is paid in full, in an amount equal to the product of (i)(A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Collateral
Rate in effect with respect to the related Interest Period and (ii) the unpaid
portion of such Collateral Interest Shortfall Amount.
(c) Collections of Finance Charge Receivables allocable to any
Series issued on or after May 25, 1994 (including, but not limited to, the
Series I Certificates, the Series J Certificates, the Series K Certificates,
the Series L Certificates, the Series M Certificates, the Series N
Certificates, the Series O Certificates, the Series P Certificates, the Series
Q Certificates, the Series R Certificates, the Series S Certificates, the
Series T Certificates and the Series 1997-T Certificates) and the proceeds
thereof that would otherwise be payable to the Seller (whether pursuant to the
Supplement relating to such Series or an agreement relating to the Enhancement
for such Series), excluding any payments made to the Seller in its capacity as
Servicer or any payments made with respect to the Investor Default Amount,
shall, unless the Supplement with respect to any such Series specifies
otherwise, be payable on each Distribution Date on a pro rata basis (based on
the numerator used in calculating the invested percentage of Collections of
Finance Charge Receivables) to or for the benefit of other Series issued on or
after May 25, 1994 (including, but not limited to, the Series I Certificates,
the Series J Certificates, the Series K Certificates, the Series L
Certificates, the Series M Certificates, the Series N Certificates, the Series
O Certificates, the Series P Certificates, the Series Q Certificates, the
Series R Certificates, the Series S Certificates, the Series T Certificates and
the Series 1997-T Certificates) experiencing shortfalls in amounts payable
25
from Collections of Finance Charge Receivables allocable to such other Series as
provided for pursuant to the Supplement for any such Series, so long as the
Supplement for any such other Series permits and provides for the payment of
such excess Collections of Finance Charge Receivables and the proceeds thereof
("Excess Finance Charge Collections") to such Series. The shortfall payable from
Excess Finance Charge Collections allocable to the Series 1997-U Certificates
for any Distribution Date (the "Shortfall Amount") shall equal the amount by
which the sum of (i) the Class A Monthly Interest, (ii) any Class A Monthly
Interest previously due but not paid to the Class A Certificateholders, (iii)
any Class A Additional Interest, (iv) the Class A Investor Default Amount, (v)
to the extent payable to a Successor Servicer that is not an Affiliate of the
Seller, the Monthly Servicing Fee, (vi) any unreimbursed Class A Investor
Charge-Offs, (vii) the Collateral Monthly Interest, (viii) any Collateral
Monthly Interest previously due but not paid to the Collateral Interest Holder,
(ix) any Collateral Additional Interest, (x) the Collateral De fault Amount and
(xi) the amounts, if any, payable pursuant to subsections 4.09(e), 4.09(f),
4.09(g) and 4.09(h), exceeds the Floating Allocation Percentage of Collections
in respect of Finance Charge Receivables allocable to the Series 1997-U
Certificates. Such Excess Finance Charge Collections shall be available only to
pay the amounts referred to in clauses (i) through (xi) above.
The Seller hereby directs the Servicer to direct the Trustee to
deposit any amounts payable to FCCNB pursuant to Section 2.11 of the Loan
Agreement with respect to any Distribution Date, to the extent such amounts
constitute Excess Finance Charge Collections for other Series, into the
Collection Account for payment on such Distribution Date.
Section 4.05 Determination of Monthly Principal for the Series 1997-U
--------------------------------------------------------
Certificates. (a) The amount of monthly principal ("Class A Monthly
------------
Principal") distributable from the Collection Account with respect to the
Class A Certificates on each Distribution Date beginning with the earlier to
occur of (i) the first Distribution Date to occur with respect to the Rapid
Amortization Period and (ii) the first Distribution Date to occur with respect
to the Accumulation Period shall be equal to Class A Available Principal
Collections; provided, however, that for each Distribution Date with respect
-------- -------
to the Accumulation Period (unless and until a Liquidation Event
26
is deemed to have occurred), Class A Monthly Principal shall not exceed the
Controlled Deposit Amount for such Distribution Date; provided, further, that
-------- -------
with respect to any Distribution Date, Class A Monthly Principal shall not
exceed the Class A Adjusted Invested Amount.
(b) The amount of monthly principal ("Collateral Monthly
Principal") distributable from the Collection Account with respect to the
Collateral Interest on each Distribution Date beginning with the December 1997
Distribution Date shall be equal to an amount calculated as follows:
(i) on any Distribution Date prior to the Distribution
Date on which the Class A Invested Amount is paid in full, the lesser of
(A) the sum of (x) Collateral Principal Collections with respect to such
Distribution Date not applied to Class A Monthly Principal on such
Distribution Date and (y) Class A Available Principal Collections not
applied to Class A Monthly Principal on such Distribution Date and (B) the
Enhancement Surplus on such Distribution Date (including any Enhancement
Surplus which will result from the transfer of funds to the Cash Collateral
Account pursuant to Section 2.11(d) of the Loan Agreement and subsection
4.11(d) of the Agreement); and
(ii) on and after the Distribution Date on which the Class
A Invested Amount is paid in full, the sum of (A) Collateral Principal
Collections with respect to such Distribution Date not applied to Class A
Monthly Principal on such Distribution Date and (B) Class A Available
Principal Collections not applied to Class A Monthly Principal on such
Distribution Date;
(iii) notwithstanding the fore going subsections (i) and
(ii) of this subsection 4.05(b), on any Distribution Date prior to the
commencement of a Rapid Amortization Period and after the determination by
the Seller to make a Conversion Deposit pursuant to, and in accordance
with, subsection 4.11(e), the sum of (A) Collateral Principal Collections
with respect to such Distribution Date not applied to Class A Monthly
Principal on such Distribution
27
Date and (B) Class A Available Principal Collections not applied to Class
A Monthly Princi pal on such Distribution Date;
provided, however, that with respect to any Distribution Date, Collateral
-------- -------
Monthly Principal shall not exceed the Collateral Invested Amount.
(c) Collections of Principal Receivables allocable to a Series
(other than Series 1992-E, and any other Series which specifically prohibits
sharing of Excess Principal Collections) with respect to any Distribution Date
but not payable to or for the benefit of such Series on such Distribution Date
("Excess Principal Collections") shall be payable on such Distribution Date on a
pro rata basis (based on the numerator used in calculating the invested
percentage of Collections of Principal Receivables) to or for the benefit of
other Series experiencing a Principal Shortfall for such Distribution Date,
provided that the Supplement for such other Series permits the payment of Excess
Principal Collections to such Series.
Section 4.06 Coverage of Required Amount for the Class A Certificates.
--------------------------------------------------------
(a) On each Determination Date, the Servicer shall determine the amount (the
"Class A Required Amount"), if any, by which the sum of (i) Class A Monthly
Interest for the related Distribution Date payable with respect to the Class A
Invested Amount, (ii) any Class A Monthly Interest previously due but not paid
to the Class A Certificateholders, (iii) any Class A Additional Interest, (iv)
the Class A Investor Default Amount, if any, for such Distribution Date and (v)
to the extent payable to a Successor Servicer that is not an Affiliate of the
Seller, the Monthly Servicing Fee (the sum of (i) through (v), the "Class A
Covered Amount") exceeds the sum of (x) Class A Available Funds for such
Distribution Date which are available to pay (i) through (v) (after taking into
consideration the pro rata portion of the Monthly Servicing Fee payable in
accordance with the first proviso to subsection 4.07(a) of the Agreement),
(y) Excess Spread available pursuant to Section 4.09 of the Agreement and (z)
Excess Finance Charge Collections allocable to the Series 1997-U Certificates
pursuant to subsection 4.04(c) of the Agreement (up to the Shortfall Amount). In
the event that the Class A Required Amount is greater than zero, the Servicer
shall give written notice to the Trustee of such positive Class A Required
Amount, specifying therein the amount to be
28
withdrawn pursuant to this subsection 4.06(a), on or after the Determination
Date but in no event later than three Business Days prior to such Distribution
Date. On the Transfer Date, the Trustee (or the Servicer on the Trustee's
behalf) shall withdraw the Withdrawal Amount from the Cash Collateral Account
and immediately deposit such amount into the Collection Account. In the event
that the Class A Required Amount exceeds the Available Cash Collateral Amount
with respect to such Distribution Date, Reallocated Principal Collections with
respect to such Distribution Date in an amount equal to such excess shall be
distributed from the Collection Account on such Distribution Date pursuant to
Section 4.10.
(b) If the Servicer fails to make any payment or deposit (other
than as required by Sections 2.07, 7.04, 8.04, 9.02 (upon receipt of sale
proceeds thereunder) and 10.01 of the Agreement) required to be made by the
Servicer at the time specified in the Agreement (including applicable grace
periods), the Trustee, without instruction from the Servicer, shall make such
payment or deposit from the Collection Account.
If the Servicer fails to give the notice of a positive Class A
Required Amount required to be given by the Servicer pursuant to subsection
4.06(a) of the Agreement, the Trustee shall make a withdrawal from the Cash
Collateral Account in accordance with the certificate delivered pursuant to
subsection 3.04(b) of the Agreement without instruction from the Servicer. In
the event that the Servicer fails to deliver the certificate required by
subsection 3.04(b) of the Agreement, no withdrawal from the Cash Collateral
Account shall be made; provided, however, that if the Trustee, in its sole
-------- -------
discretion, is able to determine and confirm the amount of interest payable
pursuant to subsection 4.07(a)(i) of the Agreement, the Trustee shall, if
necessary after application of the funds in the Collection Account, make a
withdrawal from the Cash Collateral Account in the amount of the interest
shortfall.
The Servicer shall, upon request of the Trustee, promptly provide
the Trustee with all information necessary to allow the Trustee to comply with
the provisions of this subsection 4.06(b).
Section 4.07 Application of Class A Available Funds, Collateral
--------------------------------------------------
Available Funds, Class A Available Principal Collections and Collateral
-----------------------------------------------------------------------
Principal Collec-
-----------------
29
tions on Deposit in the Collection Account for the Series 1997-U Certificates.
-----------------------------------------------------------------------------
The Trustee shall apply or shall cause the Servicer to apply (provided FCCNB is
the Servicer and the Collection Account is maintained with FNBC) or shall cause
the Paying Agent, to the extent Section 6.06 of the Agreement is applicable, to
apply, on each Distribution Date, Class A Available Funds, Collateral
Available Funds, Class A Available Principal Collections and Collateral
Principal Collections on deposit in the Collection Account with respect to such
Distribution Date to make the following distributions.
(a) An amount equal to Class A Available Funds with respect to
such Distribution Date shall be distributed in the following priority:
(i) an amount equal to Class A Monthly Interest for such
Distribution Date, plus the amount of any Class A Monthly Interest
----
previously due but not distributed on a prior Distribution Date, plus the
----
amount of any Class A Additional Interest for such Distribution Date, shall
be distributed by the Servicer or the Trustee to the Paying Agent for
payment to the Class A Certificateholders;
(ii) an amount equal to the Monthly Servicing Fee for such
Distribution Date shall be distributed to the Servicer;
(iii) an amount equal to the Class A Investor Default Amount
for such Distribution Date, if any, shall be treated as a portion of Class
A Available Principal Collections; and
(iv) the balance shall constitute Excess Spread and shall
be distributed pursuant to Section 4.09;
provided, however, in the event that there are insufficient funds (before
-------- -------
giving effect to any Withdrawal Amount payable from the Cash Collateral Account
pursuant to Section 4.06, Excess Spread payable pursuant to Sec tion 4.09,
Excess Finance Charge Collections allocable to the Series 1997-U Certificates
pursuant to subsection 4.04(c) or any Reallocated Principal Collections
available pursuant to subsection 4.10(a)) to pay in full the amounts
distributable pursuant to subsections 4.07(a)(i),
30
4.07(a)(ii) and 4.07(a)(iii), such amounts shall be paid, to the extent of such
funds, on a pro rata basis.
(b) An amount equal to Collateral Available Funds with respect
to such Distribution Date shall constitute Excess Spread and shall be
distributed pursuant to Section 4.09
(c) On each Distribution Date with respect to the Revolving
Period, an amount equal to Class A Available Principal Collections, to the
extent not allocated in accordance with subsection 4.05(b), shall be applied as
set forth in subsection 4.03(b).
(d) On each Distribution Date with respect to the Revolving
Period, an amount equal to Collateral Principal Collections for the related Due
Period plus any amount of Class A Available Principal Collections available
therefor in accordance with subsection 4.05(b) shall be distributed and applied
in the following priority:
(i) an amount equal to Collateral Monthly Principal for
such Distribution Date shall be applied in accordance with the Loan
Agreement or, if a Conversion Event shall have occurred, deposited in the
Cash Collateral Account pursuant to subsection 4.11(e); and
(ii) the balance shall be treated as a portion of Class A
Available Principal Collections for such Distribution Date.
(e) On each Distribution Date with respect to the Accumulation
Period or the Rapid Amortization Period, an amount equal to the Class A
Available Principal Collections for the related Due Period shall be distributed
and applied in the following priority:
(i) an amount equal to Class A Monthly Principal for such
Distribution Date shall be (x) during the Accumulation Period, deposited
into the Principal Funding Account to be distributed by the Servicer or the
Trustee to the Paying Agent for payment to Class A Certificateholders on
the earlier of the Class A Scheduled Payment Date or the first Distribution
Date with respect to the Rapid Amortization Period and (y) during the Rapid
Amortiza-
31
tion Period, distributed by the Servicer or the Trustee to the Paying Agent
for payment to the Class A Certificateholders; and
(ii) the balance shall be included in Collateral Monthly
Principal to the extent permitted in accordance with subsection 4.05(b).
(f) On each Distribution Date with respect to the Accumulation
Period, an amount equal to Collateral Principal Collections for the related Due
Period plus any amount of Class A Available Principal Collections included in
Collateral Monthly Principal pursuant to subsection 4.07(e)(ii) shall be
distributed and applied in the following priority:
(i) an amount equal to Collateral Monthly Principal for
such Distribution Date shall be applied in accordance with the Loan
Agreement or, if a Conversion Event shall have occurred, deposited in the
Cash Collateral Account pursuant to subsection 4.11(e); and
(ii) the balance shall be treated as a portion of Class A
Available Principal Collections for such Distribution Date.
(g) On each Distribution Date with respect to the Rapid
Amortization Period, an amount equal to Collateral Principal Collections for the
related Due Period shall be treated as a portion of Class A Available Principal
Collections for such Distribution Date.
(h) The distributions to be made pursuant to this Section 4.07
are subject to the provisions of Sections 2.07, 4.08, 9.02, 10.01, 12.01 and
12.02 of the Agreement and Section 4 of this Series Supplement.
Section 4.08 Investor Charge-Offs. (a) On each Distribution Date, the
--------------------
Servicer shall calculate the Class A Investor Default Amount, if any, for such
Distribution Date. If on any Distribution Date, the Class A Investor Default
Amount exceeds the Available Cash Collateral Amount and the amount of
Reallocated Principal Collections with respect to such Due Period available
therefor, then the Collateral Invested Amount (after giving effect to any
reductions pursuant to subsections (b) and (c) below) shall be reduced by the
amount of such
32
excess, but not by more than the Class A Investor Default Amount for such
Distribution Date. In the event that such reduction would cause the Collateral
Invested Amount to be a negative number, the Collateral Invested Amount shall be
reduced to zero and the Class A Invested Amount shall be reduced by the amount
by which the Collateral Invested Amount would have been reduced below zero, but
not by more than the Class A Investor Default Amount for such Distribution Date
(a "Class A Investor Charge-Off"). Class A Investor Charge-Offs shall thereafter
be reimbursed and the Class A Invested Amount increased (but not by an amount
in excess of the aggregate Class A Investor Charge-Offs) on any Distribution
Date by the amount of Excess Spread available for such purpose pursuant to
Section 4.09.
(b) If, on any Distribution Date, Reallocated Principal
Collections for such Distribution Date are applied pursuant to subsection
4.10(a), then the Collateral Invested Amount shall be reduced by the amount of
such Reallocated Principal Collections so applied.
(c) If, on any Distribution Date, the Collateral Default Amount
exceeds the amount of Excess Spread available in respect thereof pursuant to
Section 4.09 on such Distribution Date, then the Collateral Invested Amount
shall be reduced by the amount of such excess.
Section 4.09 Excess Spread. The Trustee shall apply or shall cause the
-------------
Servicer to apply, on each Distribution Date, Excess Spread to make the
following distributions in the following priority:
(a) an amount equal to the amount by which the Class A Covered
Amount with respect to such Distribution Date exceeds Class A Available
Funds with respect to such Distribution Date shall be distributed to fund
any such deficiency, in the order of priority of the enumerated items in
the definition of Class A Covered Amount;
(b) an amount equal to the aggregate amount of Class A Investor
Charge-Offs which have not been previously reimbursed shall be treated as a
portion of Class A Available Principal Collections for such Distribution
Date;
33
(c) an amount equal to Collateral Monthly Interest for such
Distribution Date, plus the amount of any Collateral Monthly Interest
----
previously due but not distributed on a prior Distribution Date, plus the
----
amount of any Collateral Additional Interest for such Distribution
Date, shall be applied in accordance with the Loan Agreement;
(d) an amount equal to the Collateral Default Amount for such
Distribution Date shall be treated as a portion of Collateral Principal
Collections with respect to such Distribution Date;
(e) an amount equal to the aggregate amount by which the
Collateral Invested Amount has been reduced pursuant to clause (b) of the
definition of "Collateral Invested Amount" (but not in excess of the
aggregate amount of such reductions which have not been previously
reimbursed pursuant to this subsection 4.09(e) or Section 2.12(b) of the
Loan Agreement) shall be applied in accordance with the Loan Agreement;
(f) an amount up to the excess, if any, of the Required Cash
Collateral Amount over the Adjusted Available Cash Collateral Amount
(without giving effect to any deposit made on such date hereunder or any
deposit pursuant to subsection 4.11(d) or 4.11(e)) shall be deposited into
the Cash Collateral Account;
(g) an amount equal to any unpaid portion of the Monthly
Servicing Fee for such Distribution Date, plus the amount of any Monthly
----
Servicing Fee previously due but not distributed to the Servicer on a prior
Distribution Date, shall be distributed to the Servicer;
(h) on each Distribution Date from and after the Reserve Account
Funding Date, but prior to the date on which the Reserve Account is
terminated as set forth in subsection 4.16(f), an amount up to the excess,
if any, of the Required Reserve Account Amount over the Available Reserve
Account Amount shall be deposited into the Reserve Account; and
(i) the balance shall be applied in accordance with the Loan
Agreement.
34
Section 4.10 Reallocated Principal Collections. The Trustee shall
-----------------------------------
apply or shall cause the Servicer to apply on each Distribution Date, to the
extent required hereunder, the Collateral Principal Percentage of Collections of
Principal Receivables with respect to such Distribution Date, to make the
following distributions in the following priority:
(a) an amount equal to the amount by which the Class A Covered
Amount with respect to such Distribution Date exceeds the sum of (x) the
amount of Class A Available Funds, Excess Spread and Excess Finance Charge
Collections allocable to the Series 1997-U Certificates with respect to
such Distribution Date and (y) the Available Cash Collateral Amount with
respect to such Distribution Date shall be distributed by the Trustee to
fund any such deficiency in the order of priority of the enumerated items
in the definition of Class A Covered Amount; and
(b) the balance of such Reallocated Principal Collections shall
be treated as a portion of Collateral Principal Collections to be applied
in accordance with Section 4.07.
Section 4.11 Cash Collateral Account.
-----------------------
(a) Establishment of Cash Collateral Account. The Seller hereby
----------------------------------------
directs the Trustee, for the benefit of the Series 1997-U Certificateholders, to
establish and maintain or cause to be established and maintained in the name of
the Trustee, on behalf of the Series 1997-U Certificateholders, with an Eligible
Institution (which initially shall be FNBC) a segregated trust account (the
"Cash Collateral Account"), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 1997-U
Certificateholders. The Seller does hereby transfer, assign, set over and
otherwise convey to the Trustee for the benefit of the Series 1997-U
Certificateholders, without recourse, all of its right, title and interest in,
to and under the Cash Collateral Account, any Eligible Investments on deposit
therein and any proceeds of the foregoing. The Seller, to the extent of any
interest it may have in the Cash Collateral Account, Eligible Investments or
other amounts on deposit therein and the proceeds thereof, hereby grants a
security interest in the Cash Collateral Account, Eligible Investments or other
amounts
35
on deposit therein and proceeds thereof to the Trustee for the benefit of the
Series 1997-U Certificateholders, and the parties intend that the grant
contained in this subsection 4.11(a) constitute a security agreement under the
UCC to secure the obligations of the Seller and the Trustee herein. The Trustee
shall possess all right, title and interest in all Eligible Investments or other
amounts on deposit from time to time in the Cash Collateral Account and in all
proceeds thereof. The Cash Collateral Account shall be under the sole dominion
and control of the Trustee for the benefit of the Series 1997-U
Certificateholders. If, at any time, the institution holding the Cash Collateral
Account ceases to be an Eligible Institution, the Trustee (or the Servicer on
its behalf) shall within 10 Business Days (or within 5 Business Days if such
institution is an Affiliate of First Chicago) establish a new Cash Collateral
Account meeting the conditions specified above with an Eligible Institution,
transfer any cash and/or any Eligible Investments or other amounts on deposit in
the Cash Collateral Account to such new Cash Collateral Account and from the
date such new Cash Collateral Account is established, it shall be the "Cash
Collateral Account." The Seller hereby directs the Trustee (or the Servicer on
the Trustee's behalf) to deposit $4,571,429 in the Cash Collateral Account on
the Closing Date, and the Trustee hereby acknowledges receipt of such deposit
from the Seller. Pursuant to the authority granted to the Servicer in subsection
3.01(b), the Servicer shall have the power, revocable by the Trustee, to
instruct the Trustee to make withdrawals and payments from the Cash Collateral
Account for the purposes of carrying out the Servicer's and the Trustee's duties
hereunder and under the Loan Agreement. Withdrawals from the Cash Collateral
Account shall be made only as provided herein.
(b) Administration of the Cash Collateral Account. Funds on deposit in
---------------------------------------------
the Cash Collateral Account shall at all times be invested by the Trustee in
Eligible Investments, which may be obligations of Affiliates of the Seller or
the Servicer and which may, with the written consent of Standard & Poor's, be
rated A-1 instead of A-1+. The Seller shall direct the Trustee as to the
selection of such Eligible Investments. Funds on deposit in the Cash Collateral
Account for any Distribution Date, after giving effect to any deposits to or
withdrawals from the Cash Collateral Account for such Distribution Date, shall
be invested in Eligible Investments that will mature so that such funds will be
available for withdraw-
36
al on the following Transfer Date. The proceeds of any such investments shall at
all times be invested in Eligible Investments that will mature so that such
funds will be available for withdrawal on or prior to the Transfer Date
immediately following the date of such investment. The Seller shall furnish or
cause to be furnished to the Trustee a monthly statement reporting all activity
with respect to the Cash Collateral Account. The Trustee shall maintain for the
benefit of the Series 1997-U Certificateholders possession, itself or through a
bailee, of the negotiable instruments or securities, if any, evidencing the
Eligible Investments described in clause (a) of the definition thereof from the
time of purchase thereof until the time of sale or maturity. On each Transfer
Date, all interest and other investment earnings (net of losses and investment
expenses) earned during the period since the preceding Transfer Date on funds on
deposit in the Cash Collateral Account shall be paid to, or upon the order of,
the Seller. In addition, after the occurrence of a Conversion Deposit, any Cash
Collateral Account Surplus shall be withdrawn on any Transfer Date for
application in accordance with the Loan Agreement. For purposes of determining
the availability of funds or the balances in the Cash Collateral Account for any
reason under this Agreement, all investment earnings on such funds shall be
deemed not to be available or on deposit.
(c) Final Payment of the Series 1997-U Certificates. The Trustee
-----------------------------------------------
shall, no later than the Termination Payment Date, upon the prior payment of all
amounts owing to the Class A Certificateholders and the Servicer and payable
from the Cash Collateral Account as provided herein, withdraw from the Cash
Collateral Account all amounts on deposit in the Cash Collateral Account for
application in accordance with Section 2.11 of the Loan Agreement.
(d) Optional Deposit. Pursuant to the terms of and subject to the
----------------
limitation contained in the Loan Agreement, the Seller, at its option, may at
any time prior to the commencement of the Rapid Amortization Period elect to
cause one or more additional deposits to be made into the Cash Collateral
Account (each, an "Optional Deposit"). The Seller may cause any such deposit
to be made on a Distribution Date after forwarding notice of such deposit
(including the amount thereof) to the Trustee in accordance with Section 3.04
relating to the furnishing of monthly reports to the Trustee. Any such
37
deposit shall be deemed to be available in the Cash Collateral Account for
purposes of calculating any Enhancement Surplus for such related Distribution
Date, but shall not be included in the Available Cash Collateral Amount for such
Distribution Date, but shall be included in the Available Cash Collateral Amount
for the subsequent Distribution Date.
(e) Conversion Deposit. The Seller, at its option, may at any
------------------
time following the occurrence of a Conversion Event and prior to the
commencement of the Rapid Amortization Period elect to cause Collateral Monthly
Principal with respect to a Distribution Date (in an amount calculated pursuant
to subsection 4.05(b)(iii)) to be deposited into the Cash Collateral Account
(each such deposit, a "Conversion Deposit"); provided, however, that the Trustee
-------- -------
shall have received written confirmation from each Rating Agency which has rated
any outstanding Series that such Rating Agency will not reduce or with draw its
rating on any outstanding Series rated by it as a result of the making of
Conversion Deposits. The Seller may cause any such deposit to be made on a
Distribution Date after forwarding notice of such deposit to the Trustee in
accordance with Section 3.04 relating to the furnishing of monthly reports to
the Trustee. Any such deposit shall not be included in the Available Cash
Collateral Amount for such Distribution Date, but shall be included in the
Available Cash Collateral Amount for the subsequent Distribution Date.
(f) Tax Reporting. The Seller shall report all investment
-------------
earnings on amounts from time to time on deposit in the Cash Collateral Account
as its income for applicable federal, state and local tax purposes.
Section 4.12 Interchange; Interchange Monthly Servicing Fee. (a) On or
----------------------------------------------
prior to each Determination Date, the Seller shall notify the Servicer of the
Interchange Amount to be included as Collections of Finance Charge Receivables
with respect to the related Distribution Date. Not later than 12:00 noon,
Chicago, Illinois time, on each Transfer Date, the Seller shall deposit into
the Collection Account in immediately available funds the Interchange Amount
(less the Interchange Monthly Servicing Fee) to be included as Finance Charge
Receivables with respect to the preceding Due Period.
38
(b) In addition to the Monthly Servicing Fee payable pursuant to
Section 4.07 of the Agreement and the remaining Monthly Servicing Fee payable
pursuant to Section 4.09 of the Agreement, the Servicer shall be entitled to
receive on each Transfer Date a servicing fee payable solely from the
Interchange Amount equal to the lesser of (a) the Interchange Amount with
respect to the related Distribution Date and (b) one-twelfth of the product of
1.25% per annum and the Adjusted Invested Amount as of the Record Date for such
Distribution Date (or, in the case of the first Distribution Date, the Initial
Invested Amount) (such servicing fee, the "Interchange Monthly Servicing Fee").
Section 4.13 Determination of LIBOR. On each LIBOR Determination Date,
----------------------
the Servicer will deter mine LIBOR for the Interest Period following such LIBOR
Determination Date on the basis of the rate for deposits in United States
Dollars for the Interest Period following such LIBOR Determination Date which
appears on Telerate Page 3750 as of 11:00 A.M. (London time) on such LIBOR
Determination Date.
(b) If, on any LIBOR Determination Date, such rate does not
appear on Telerate Page 3750, LIBOR will be determined on the basis of the rates
at which deposits for United States Dollars are offered by at least two of the
Reference Banks at approximately 11:00 A.M. (London time) on such LIBOR
Determination Date to prime banks in the London interbank market for the
Interest Period following such LIBOR Determination Date. The Servicer shall
request the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two such quotations are provided, LIBOR for
such LIBOR Determination Date shall be the arithmetic mean of such quotations
(rounded up, if necessary, to the nearest multiple of 0.0625% per annum).
(c) If, on any LIBOR Determination Date, only one or none of the
Reference Banks provides such offered quotations, LIBOR will be the rate per
annum (rounded, as aforesaid) that the Servicer determines to be either (x) the
arithmetic mean of the offered quota tions that leading banks in the City of New
York selected by the Servicer are quoting on the relevant LIBOR Deter mination
Date for one-month United States Dollar deposits to the principal London office
of each of the Reference Banks or those of them (being at least two in number)
to which such offered quotations are, in the opinion of the
39
Servicer, being so quoted or (y) in the event that the Servicer can determine no
such arithmetic mean, the arithmetic mean of the offered quotations that leading
banks in the City of New York selected by the Servicer are quoting on such LIBOR
Determination Date to leading European banks for one-month United States Dollar
deposits; or
(d) If, on the LIBOR Determination Date, the banks selected as
aforesaid by the Servicer are not quoting as described in clause (c) above,
LIBOR for such Interest Period will be LIBOR as determined on the previous
LIBOR Determination Date (or 5.625%, in the case of the first LIBOR
Determination Date).
(e) The Class A Certificate Rate applicable to the then current and
the immediately preceding Interest Periods may be obtained by any Class A
Certificateholder by telephoning the Servicer at 000-000-0000.
Section 4.14 Postponement of Accumulation Period. The Accumulation Period
-----------------------------------
is scheduled to commence on the first day of the Due Period relating to the
November 2001 Distribution Date; provided, however, that, if the Accumulation
-------- -------
Period Length (determined as described below) is less than 12 monthly periods,
upon notice to the Trustee, the Seller, each Rating Agency and the Collateral
Interest Holder, the Servicer, at its option, may elect to modify the date on
which the Accumulation Period actually commences to the first day of the Due
Period which ends in the month that is at least the number of calendar months
prior to the calendar month in which the Class A Scheduled Payment Date occurs
equal to the Accumulation Period Length; provided, however, that (i) the length
of the Accumulation Period shall not be less than one monthly period and (ii)
notwithstanding any other provision hereof to the contrary, no election to
postpone the commencement of the Accumulation Period shall be made after a
Liquidation Event shall have occurred and is continuing with respect to any
other Series. On the Determination Date with respect to the October 2001
Distribution Date, the Servicer shall determine the "Accumulation Period
Length," which shall equal the number of monthly periods such that the
Accumulation Period Amount for the Due Period relating to the Class A Scheduled
Payment Date, when aggregated with the Accumulation Period Amounts for each
preceding Due Period, shall equal or exceed the Class A Initial Invested Amount.
Any notice by the Servicer electing to modify
40
the commencement of the Accumulation Period pursuant to this Section shall
specify (i) the Accumulation Period Length, (ii) the commencement date of the
Accumulation Period and (iii) the Controlled Accumulation Amount with respect to
each Due Period preceding the Class A Scheduled Payment Date.
Section 4.15 Principal Funding Account. The Seller hereby directs the
-------------------------
Trustee, for the benefit of the Series 1997-U Certificateholders, to establish
and maintain or cause to be established and maintained in the name of the
Trustee, on behalf of the Series 1997-U Certificateholders, with an Eligible
Institution (which initially shall be FNBC) a segregated trust account (the
"Principal Funding Account"), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 1997-U
Certificateholders. The Trustee shall possess all right, title and interest in
all Eligible Investments or other amounts on deposit from time to time in the
Principal Funding Account and in all proceeds thereof. The Principal Funding
Account shall be under the sole dominion and control of the Trustee for the
benefit of the Series 1997-U Certificateholders. If, at any time, the
institution holding the Principal Funding Account ceases to be an Eligible
Institution, the Trustee (or the Servicer on its behalf) shall within 10
Business Days establish a new Principal Funding Account meeting the conditions
specified above with an Eligible Institution, and shall transfer any cash and/or
any Eligible Investments or other amounts to such new Principal Funding Account.
Pursuant to the authority granted to the Servicer in subsection 3.01(b), the
Servicer shall have the power, revocable by the Trustee, (i) to make
withdrawals, or to instruct the Trustee to make withdrawals, from the Principal
Funding Account from time to time, in the amounts and for the purposes set forth
herein and (ii) on each Distribution Date (from and after the commencement of
the Accumulation Period) prior to the termination of the Principal Funding
Account, to make deposits, or to instruct the Trustee to make deposits, into the
Principal Funding Account in the amounts specified in, and otherwise in
accordance with, subsection 4.07(e).
(b) Funds on deposit in the Principal Funding Account shall at all
times be invested by the Trustee in Eligible Investments, which may be
obligations of Affiliates of the Seller or the Servicer and which may, with the
written consent of Standard & Poor's, be rated A-1
41
instead of A-1+. The Seller shall direct the Trustee as to the selection of such
Eligible Investments. Funds on deposit in the Principal Funding Account on any
Distribution Date, after giving effect to any withdrawals from the Principal
Funding Account for such Distribution Date, shall be invested in such
investments that will mature so that such funds will be available for withdrawal
on or prior to the following Transfer Date. The Trustee shall maintain for the
benefit of the Series 1997-U Certificateholders possession, itself or through a
bailee, of the negotiable instruments or securities, if any, evidencing the
Eligible Investments described in clause (a) of the definition thereof from the
time of purchase thereof until the time of maturity.
(c) On each Transfer Date with respect to the Accumulation Period and
on the first Distribution Date with respect to the Rapid Amortization Period,
the Servicer shall transfer from the Principal Funding Account to the Collection
Account the Principal Funding Investment Proceeds on deposit in the Principal
Funding Account, but not in excess of the Covered Amount, for application as
Class A Available Funds.
(d) Any Excess Principal Funding Investment Proceeds shall be paid
to, or upon the direction of, the Seller on each Transfer Date. An amount equal
to any Principal Funding Investment Shortfall will be deposited into the
Collection Account from the Reserve Account to the extent funds are available
pursuant to subsection 4.16(d). Principal Funding Investment Proceeds (including
reinvested interest) shall not be considered part of the principal amounts on
deposit in the Principal Funding Account hereunder.
(e) On the earliest to occur of (i) the first Distribution Date with
respect to the Rapid Amortization Period and (ii) the Class A Scheduled Payment
Date, the Trustee shall pay, or cause the Servicer to pay, the Principal Funding
Account Balance to Class A Certificateholders in accordance with subsection
5.01(b).
Section 4.16 Reserve Account.
---------------
(a) The Seller hereby directs the Trustee, for the benefit of the Series
1997-U Certificateholders, to establish and maintain or cause to be established
and maintained in the name of the Trustee, on behalf of the Series 1997-U
Certificateholders, with an Eligible Insti-
42
tution (which initially shall be FNBC) a segregated trust account (the "Reserve
Account"), bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Series 1997-U Certificateholders. The
Trustee shall possess all right, title and interest in all Eligible Investments
or other amounts on deposit from time to time in the Reserve Account and in all
proceeds thereof. The Reserve Account shall be under the sole dominion and
control of the Trustee for the benefit of the Series 1997-U Certificateholders.
If, at any time, the institution holding the Reserve Account ceases to be an
Eligible Institution, the Trustee (or the Servicer on its behalf) shall within
10 Business Days establish a new Reserve Account meeting the conditions
specified above with an Eligible Institution, and shall transfer any cash and/or
any Eligible Investments or other amounts to such new Reserve Account. Pursuant
to the authority granted to the Servicer in subsection 3.01(b), the Servicer
shall have the power, revocable by the Trustee (i) to make withdrawals, or to
instruct the Trustee to make withdrawals, from the Reserve Account from time to
time in an amount up to the Available Reserve Account Amount at such time, for
the purposes set forth herein and (ii) on each Distribution Date (from and after
the Reserve Account Funding Date) prior to termination of the Reserve Account,
to make a deposit, or to instruct the Trustee to make a deposit, into the
Reserve Account in the amount specified in, and otherwise in accordance with,
subsection 4.09 (h).
(b) Funds on deposit in the Reserve Account shall at all times be
invested by the Trustee in Eligible Investments, which may be obligations of
Affiliates of the Seller or the Servicer and which may, with the written consent
of Standard & Poor's, be rated A-1 instead of A-1+. The Seller shall direct the
Trustee as to the selection of such Eligible Investments. Funds on deposit in
the Reserve Account on any Distribution Date, after giving effect to any
withdrawals from the Reserve Account for such Distribution Date, shall be
invested in such investments that will mature so that such funds will be
available for withdrawal on or prior to the following Transfer Date. The Trustee
shall maintain for the benefit of the Series 1997-U Certificateholders
possession, itself or through a bailee, of the negotiable instruments or
securities, if any, evidencing the Eligible Investments described in clause (a)
of the definition thereof from the time of purchase thereof until the time of
maturity. On each Transfer Date, all interest and earn-
43
ings (net of losses and investment expenses) accrued since the preceding
Distribution Date on funds on deposit in the Reserve Account shall be retained
in the Reserve Account (to the extent that the Available Reserve Account Amount
is less than the Required Reserve Account Amount) and the balance, if any, shall
be paid to, or upon the direction, of the Seller. For purposes of determining
the availability of funds or the balance in the Reserve Account for any reason
hereunder, except as otherwise provided in the preceding sentence, investment
earnings on such funds shall be deemed not to be available or on deposit.
(c) On or before each Distribution Date with respect to the
Accumulation Period, and on or before the first Distribution Date with respect
to the Rapid Amortization Period, the Servicer shall calculate the "Reserve Draw
Amount" which shall be equal to the Principal Funding Investment Shortfall with
respect to such Distribution Date; provided, however, that such amount will be
-------- -------
reduced to the extent that funds otherwise would be available for deposit in the
Reserve Account under subsection 4.09(h) with respect to such Distribution
Date.
(d) In the event that for any Distribution Date the Reserve Draw
Amount is greater than zero, the Reserve Draw Amount, up to the Available
Reserve Account Amount, shall be withdrawn from the Reserve Account on the
Transfer Date by the Servicer or the Trustee (acting in accordance with the
instructions of the Servicer), and deposited into the Collection Account for
application as Class A Available Funds.
(e) In the event that the Reserve Account Surplus for any
Distribution Date, after giving effect to all deposits to and withdrawals from
the Reserve Account with respect to such Distribution Date, is greater than
zero, the Servicer, or the Trustee, acting in accordance with the instructions
of the Servicer, shall withdraw from the Reserve Account on the Transfer Date,
and treat as Excess Spread to be applied in accordance with subsection 4.09(i),
an amount equal to such Reserve Account Surplus.
(f) Upon the earliest to occur of (i) the date on which the Class A
Invested Amount shall be paid in full, (ii) the first Distribution Date with
respect to the Rapid Amortization Period and (iii) the Scheduled Payment Date,
the Trustee, after the prior payment of all
44
amounts owing to the Series 1997-U Certificateholders that are payable from the
Reserve Account as provided herein, shall withdraw, or cause the Servicer to
withdraw, from the Reserve Account and treat as Excess Spread to be applied in
accordance with subsection 4.09(i), all amounts, if any, on deposit in the
Reserve Account, and the Reserve Account shall thereafter be deemed to have
terminated for all purposes hereunder.
[END OF ARTICLE IV]
SECTION 8. Article V of the Agreement. With respect to the Series 1997-U
--------------------------
Certificates, Article V of the Agreement shall read as follows:
ARTICLE V
DISTRIBUTIONS AND REPORTS TO
CERTIFICATEHOLDERS
Section 5.01 Distributions. (a) On each Payment Date for the Series
-------------
1997-U Certificates, the Paying Agent shall distribute to each Class A
Certificateholder on the preceding Record Date (other than as provided in
Section 12.02 of the Agreement respecting a final distribution) such Class A
Certificateholder's pro rata share (based on the aggregate Undivided Interests
represented by related Class A Certificates held by such Class A
Certificateholder) of the funds on deposit in the Collection Account payable to
such Class A Certificateholders pursuant to the Agreement in respect of
interest.
(b) On the Scheduled Payment Date, on each Distribution Date with
respect to the Rapid Amortization Period and on the Termination Payment Date for
the Series 1997-U Certificates, the Paying Agent shall distribute to each Class
A Certificateholder on the preceding Record Date (other than as provided in
Section 12.02 of the Agreement respecting a final distribution) such Class A
Certificateholder's pro rata share (based on the aggregate Undivided Interests
represented by related Class A Certificates held by such Class A
Certificateholder) of the funds on deposit in the Collection Account and, if
applicable, the Principal Funding Account, payable to such Class A
Certificateholders pursuant to the Agreement in respect of principal; provided,
--------
however,that no distribution pursuant to this subsection 5.01(b) may
-------
45
exceed the Class A Invested Amount before giving effect to such distribution.
(c) Distributions to Class A Certificateholders hereunder shall be
made by check mailed to each Class A Certificateholder, except that with respect
to Class A Certificates registered in the name of a Clearing Agency, such
distribution shall be made in immediately available funds.
(d) On each Payment Date for the Series 1997-U Certificates, the
Paying Agent shall distribute to the Collateral Interest Holder on such Payment
Date the funds on deposit in the Collection Account payable to or with respect
to the Collateral Interest for application pursuant to the terms of the Loan
Agreement. Distributions to be made hereunder to or with respect to the
Collateral Interest shall be made in immediately available funds at the
direction of the Collateral Interest Holder.
Section 5.02 Statements to Certificateholders. (a) Certificateholders'
-------------------------------- -------------------
Payment Date Statement. On each Payment Date, the Paying Agent, on behalf of
----------------------
the Trustee, shall forward to each Class A Certificateholder (or to the Clearing
Agency to the extent Section 6.11 of the Agreement applies), to the Collateral
Interest Holder and to each Rating Agency a statement substantially in the form
of Exhibit B prepared by the Servicer setting forth the information set forth in
the Monthly Servicer's Certificate furnished to the Trustee with respect to such
Distribution Date.
(b) Annual Certificateholders' Tax Statement. On or before
----------------------------------------
January 31 of each calendar year, beginning with calendar year 1998, the
Servicer will cause the Paying Agent, on behalf of the Trustee, to furnish or
cause to be furnished to each Person who at any time during the preceding
calendar year was a Class A Certificateholder, a statement prepared by the
Servicer containing information relating to the amounts distributed to such
Person aggregated for such calendar year or the applicable portion thereof
during which such Person was a Class A Certificateholder, together with such
other information as is required to be provided by an issuer of debt under the
Internal Revenue Code and such other customary information as is necessary to
enable the Class A Certificateholders to prepare their tax returns. Such
obligation of the Servicer shall be deemed to have been
46
satisfied to the extent that substantially comparable information shall be
provided by the Paying Agent pursuant to any requirements of the Internal
Revenue Code as from time to time in effect. In addition, the Servicer shall
make available to Certificate Owners of Class A Certificates such information as
is required by the Code and the regulations thereunder to be made available to
holders of debt instruments having the characteristics of the Class A
Certificates.
[END OF ARTICLE V]
SECTION 9. Additional Liquidation Events. If any one of the events
-----------------------------
specified in Section 9.01 of the Agreement (after any grace periods or consents
applicable thereto) or any one of the following events shall occur during either
the Revolving Period or the Accumulation Period with respect to the Series 1997-
U Certificates:
(a) failure on the part of the Seller (i) to make any payment or
deposit required by the terms of the Agreement or this Series Supplement on or
before five Business Days after the date such payment or deposit is required to
be made therein or herein, or (ii) duly to observe or perform in any material
respect the covenant of the Seller set forth in subsection 2.08(b) of the
Agreement, or (iii) duly to observe or perform in any material respect any other
covenants or agreements of the Seller set forth in the Agreement or this Series
Supplement, which, in the case of clause (iii), continues unremedied for a
period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Seller by the
Trustee, or to the Seller and the Trustee by a Rating Agency, the Collateral
Interest Holder or the Holders of Class A Certificates evidencing Undivided
Interests aggregating not less than 10% of the Class A Invested Amount;
(b) any representation or warranty made by the Seller in the
Agreement or this Series Supplement or any information contained in a computer
file or microfiche list required to be delivered by the Seller pursuant to
Section 2.01 or 2.05 of the Agreement shall prove to have been incorrect in any
material respect when made or when delivered, which continues to be incorrect in
any material respect for a period of 60 days after the date on which written
notice of such failure, requiring the
47
same to be remedied, shall have been given to the Seller by the Trustee, or to
the Seller and the Trustee by a Rating Agency, the Collateral Interest Holder or
the Holders of Class A Certificates evidencing Undivided Interests aggregating
not less than 10% of the Class A Invested Amount and as a result of which the
interests of the Series 1997-U Certificateholders are materially and adversely
affected; provided, however, that a Liquidation Event pursuant to this
-------- -------
subparagraph 9(b) shall not be deemed to have occurred hereunder with respect to
the Series 1997-U Certificates if the Seller has accepted the transfer of the
related Receivable, or all of such Receivables, if applicable, during such
period (or such longer period as the Trustee may specify), in accordance with
the provisions hereof;
(c) the average Portfolio Yield (the calculation of which shall
include, without limitation, the Interchange Amount as a component of Finance
Charge Receivables) for any three consecutive Due Periods shall be less than the
average of the Base Rates for the related Interest Periods;
(d) the Seller shall fail to convey Additional Accounts to the Trust,
as required by subsection 2.05(a) of the Agreement, (i) in the case of the
calculation provided in subsection 2.05(a)(1) of the Agreement 10 days after the
failure to meet such calculation or (ii) in the case of the calculation provided
in subsection 2.05(a)(2) of the Agreement immediately upon the occurrence of the
failure to meet such calculation;
(e) the Class A Invested Amount shall not be paid in full on the
Class A Scheduled Payment Date; or
(f) any Servicer Default shall occur which would have a material
adverse effect on the Series 1997-U Certificateholders;
then, (y) in the case of any event described in subparagraph (a), (b) or (f),
after any applicable grace period set forth in or applicable to such
subparagraph, either the Trustee or the Holders of Series 1997-U Certificates
evidencing Undivided Interests aggregating not less than 50% of the Invested
Amount of the Series 1997-U Certificates by notice then given in writing to the
Seller and the Servicer (and to the Trustee if given by the Series 1997-U
Certificateholders) may declare that a liquidation event (a "Liquidation Event")
has occurred with respect
48
to the Series 1997-U Certificates as of the date of such notice, and (z) in the
case of subparagraph (c), (d) or (e) (or any of the events specified in Section
9.01 of the Agreement), a Liquidation Event with respect to such Series 1997-U
Certificates shall occur without any notice or other action on the part of the
Trustee or all investor certificateholders or the Series 1997-U
Certificateholders, as applicable, immediately upon the occurrence of such
event.
SECTION 10. Related Interest Periods. For purposes of this Series
------------------------
Supplement, the Interest Period related to any Due Period shall be the Interest
Period ending on the day prior to the Distribution Date for such Due Period.
SECTION 11. Eligible Servicer. The Trustee hereby agrees that, in the
-----------------
event that it appoints an Eligible Servicer as Successor Servicer pursuant to
Section 10.02 of the Agreement, such Eligible Servicer shall have a long term
debtrating of at least A by Standard & Poor's and A2 by Moody's; provided,
--------
however, that if the Trustee has a long term debt rating of at least A by
-------
Standard & Poor's and A2 by Moody's, such Eligible Servicer need have only a
long term debt rating of BBB- by Standard & Poor's and Baa3 by Moody's.
SECTION 12. Trustee Resignation. The Trustee shall not resign pursuant to
-------------------
Section 11.07 of the Agreement without written confirmation from each Rating
Agency that such resignation will not result in the Rating Agency's reducing or
withdrawing its rating on any Class of any then outstanding Series rated by it.
SECTION 13. Tax Opinion. As permitted in subsection 6.09(b) of the
------------
Agreement, it shall be a condition of the Exchange contemplated hereby and the
issuance of the Series 1997-U Certificates that an Opinion of Counsel be
furnished pursuant to clause (c) of subsection 6.09(b) to the effect that the
Class A Certificates will be treated as debt for Federal income tax purposes and
that the issuance of the Series 1997-U Certificates will not adversely affect
the Federal income tax characteristics of any outstanding Series of Investor
Certificates or any Certificate Owner.
SECTION 14. Subordination of Certain Termination Payments.
---------------------------------------------
Notwithstanding anything contained in subsection 12.02(c) of the Agreement, upon
the sale of
49
Receivables or interests therein as provided in Section 12.02(c) of the
Agreement, the net proceeds of any such sale payable to the Series 1997-U
Certificates shall be paid pro rata to the Class A Certificates and then to the
--- ----
Collateral Interest Holder for application pursuant to the terms of the Loan
Agreement.
SECTION 15. Variable Accumulation Series. For purposes of the Supplement
-----------------------------
with respect to any other Series (including, but not limited to, the Supplement
for Series 1997-U), Series 1997-U Certificates may be designated a "Variable
Accumulation Series."
SECTION 16. Ratification of Pooling and Servicing Agreement;
------------------------------------------------
Representations; Security Interest.
----------------------------------
(a) As supplemented by this Series Supplement, the Agreement is in
all respects ratified and confirmed and the Agreement as so supplemented by this
Series Supplement shall be read, taken, and construed as one and the same
instrument; provided, however, that pursuant to clause (D) of the fifth sentence
-------- -------
of subsection 9.02(a) of the Agreement, the required written instruction
pursuant to such fifth sentence of subsection 9.02(a) shall include the Holders
of Investor Certificates representing Undivided Interests aggregating more than
50% of the Invested Amount of each Series issued prior to April 19, 1995.
(b) The Seller hereby represents and warrants to the Trustee that all
approvals, authorizations, consents, orders or other actions of any person or of
any governmental body or official required in connection with the execution and
delivery by the Seller of the Agreement, any Supplement and the Certificates,
the performance by the Seller of the transactions contemplated by the Agreement
and any Supplement and the fulfillment by the Seller of the terms of the
Agreement, any Supplement and the Certificates have been obtained; provided,
--------
however, that the Seller makes no representation or warranty regarding state
-------
securities or "Blue Sky" laws in connection with the distribution of the
Certificates.
(c) If the Agreement does not constitute a valid transfer and
assignment of all right, title and interest of the Seller in the Receivables and
the proceeds thereof (excluding Recoveries relating thereto), the parties hereto
intend that the Agreement, which constitutes a security agreement under the UCC,
is a
50
grant of a security interest for the purposes of (i) securing the rights of the
Trustee for the benefit of the Investor Certificateholders and (ii) securing the
right and ability of the Trustee to make the distributions set forth in the
Agreement.
SECTION 17. Counterparts. This Series Supplement may be executed in any
------------
number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.
SECTION 18. Governing Law. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN
-------------
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
51
IN WITNESS WHEREOF, the Seller, the Servicer and the Trustee have caused
this Series Supplement to be duly executed by their respective officers
thereunto duly authorized as of the day and year first above written.
FCC NATIONAL BANK
By /s/ Xxxxx X. Xxxxx, Xx.
-------------------------------
Name: Xxxxx X. Xxxxx, Xx.
Title: Senior Vice President and
Chief Financial Officer
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION
By /s/ Xxxxxxx X.X. Xxxxxxx
-------------------------------
Name: Xxxxxxx X.X. Xxxxxxx
Title: Corporate Trust Officer
EXHIBIT A
---------
REGISTERED FIRST CHICAGO MASTER TRUST II REGISTERED
Unless this certificate is presented by an authorized representative
of The Depository Trust Company to the issuer or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or such other name as requested by an authorized
representative of The Depository Trust Company and any payment is made to Cede &
Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an
interest herein.
FLOATING RATE ASSET BACKED CERTIFICATES SERIES 1997-U
No. _____ $_____________
Each $1,000 minimum denomination represents 1/400,000 Undivided Interest in
certain assets of the
FIRST CHICAGO MASTER TRUST II
Evidencing an Undivided Interest in a Trust, the corpus of which consists of
receivables generated from time to time in the ordinary course of business in a
portfolio of "Classic VISA", "Standard MasterCard", "VISA Gold", "Gold
MasterCard", "Platinum VISA" and "Platinum MasterCard" consumer revolving credit
accounts
by
FCC NATIONAL BANK
(Not an interest in or obligation of FCC National Bank or any affiliate thereof
except to the limited extent described herein)
CUSIP NO. 31945 RBA 0
-----------
A-1
This certifies that
CEDE & CO.
(the "Certificateholder") is the registered owner of the Undivided Interest in
certain assets of a trust (the "Trust"), created pursuant to the Pooling and
Servicing Agreement, dated as of June 1, 1990, as supplemented by a Series 1997-
U Supplement, dated as of October 1, 1997, by and between FCC National Bank
("FCCNB"), a national bank, as Seller and Servicer, and Norwest Bank Minnesota,
National Association, as trustee (the "Trustee") (collectively referred to
herein as the "Agreement"). The corpus of the Trust consists of (i) a portfolio
of all receivables (the "Receivables") existing in the consumer revolving credit
card accounts identified under the Agreement from time to time (the "Accounts"),
(ii) all Receivables generated under the Accounts from time to time thereafter,
(iii) funds collected or to be collected from cardholders in respect of the
Receivables (other than Recoveries), (iv) all funds which are from time to time
on deposit in the Collection Account and any other account or accounts held for
the benefit of investor certificateholders (the "Investor Certificateholders"),
(v) the benefits of funds on deposit in the Cash Collateral Account and any
other Enhancements to be issued by Enhancement Providers with respect to one or
more Series of investor certificates (the "Investor Certificates") up to the
amount available thereunder, and (vi) all other assets and interests
constituting the Trust. The holder of this Certificate is entitled to the
benefit of funds on deposit in the Cash Collateral Account, and the benefits of
the subordination of the Collateral Interest Series 1997-U (the "Collateral
Interest"), and is not entitled to the benefit of any other Enhancement which
may be part of the Trust's assets. Although a summary of certain provisions of
the Agreement is set forth below, this Certificate does not purport to summarize
the Agreement, is qualified in its entirety by the terms and provisions of the
Agreement and reference is made to the Agreement for information with respect to
the interests, rights, benefits, obligations, proceeds, and duties evidenced
hereby and the rights, duties and obligations of the Trustee. A copy of the
Agreement may be requested from the Trustee by writing to the Trustee at Xxxxx
Xxxxxx xxx Xxxxxxxxx Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000-0000, Attention:
Corporate Trust Department. To the extent not defined herein, the capitalized
terms used herein have the meanings ascribed to them in the Agreement.
A-2
This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, as amended from time to time, to
which the Certificateholder, by virtue of the acceptance hereof, assents and
is bound.
It is the intent of FCCNB and the Class A Certificateholders that, for
federal, state and local income and franchise tax purposes only, the Class A
Certificates will be evidence of debt secured by the Receivables. FCCNB and the
Certificateholder, by the acceptance of this Certificate, agree to treat this
Certificate for federal, state and local income and franchise tax purposes as
debt.
Subject to the Agreement, payments of principal are limited to the
unpaid Class A Invested Amount of the Class A Certificates at the commencement
of the Rapid Amortization Period, which may be less than the unpaid balance of
the Class A Certificates pursuant to the terms of the Agreement. All principal
of and interest on the Class A Certificates is due and payable no later than the
November 2004 Distribution Date (the "Series Termination Date"). After the
Series Termination Date, neither the Trust nor FCCNB will have any further
obligation to distribute principal or interest on the Class A Certificates. In
the event that the Class A Invested Amount is greater than zero on the Series
Termination Date, the Trustee will sell or cause to be sold, and pay the
proceeds, to the extent necessary, to the Class A Certificateholders pro rata
in final payment of the Class A Invested Amount, an amount of interests in the
Receivables or certain of the Receivables up to 110% of the Adjusted Invested
Amount at the close of business on such date (but not more than the total amount
of Receivables allocable to the Certificates, including the Collateral
Interest).
The Receivables consist of Principal Receivables which arise
generally from the purchase of goods and services and amounts advanced to
cardholders as cash advances and Finance Charge Receivables which arise from the
Periodic Rate Finance Charges, Cash Advance Fees, Late Fees, Overlimit Fees,
annual fees with respect to the Accounts, Returned Check Fees and all other fees
and charges payable by Obligors with respect to the Accounts. Finance Charge
Receivables also include certain Interchange allocable to the Accounts. This
Certificate is one of a class of a series of Investor Certificates enti-
A-3
tled "First Chicago Master Trust II Floating Rate Credit Card Certificates
Series 1997-U (the "Class A Certificates" and together with the Collateral
Interest, the "Certificates"), each of which represents an Undivided Interest in
certain assets of the Trust. The Trust's assets are allocated in part to the
Class A Certificate holders and to the holder of the Collateral Interest (the
"Collateral Interest Holder"), with the remainder allocated to holders of other
Series of Investor Certificates issued by the Trust, if any, and to FCCNB (the
"Seller"). In addition to the Certificates, an Exchangeable Seller's Certificate
will be issued to the Seller pursuant to the Agreement which will represent the
Seller's interest in the Trust. The Exchangeable Seller's Certificate will
represent the interest in the Principal Receivables not represented by the
Investor Certificates. The Exchangeable Seller's Certificate may be exchanged
by the Seller pursuant to the Agreement for one or more Series of Investor
Certificates and a reissued Exchangeable Seller's Certificate upon the
conditions set forth in the Agreement. In addition, to the extent permitted for
any Series of Investor Certificates by the related Supplement, the Investor
Certificateholders of such Series may tender their Investor Certificates and the
Seller may tender the Exchangeable Seller's Certificate in exchange for one or
more Series of Investor Certificates and a reissued Exchangeable Seller's
Certificate.
The aggregate interest represented by the Certificates at any time in
the Principal Receivables in the Trust shall not exceed an amount equal to the
Invested Percentage with respect to Principal Receivables at such time. The
Invested Amount, for any date, will be an amount equal to the sum of the Class A
Invested Amount and the Collateral Invested Amount. The Initial Invested Amount
is $457,142,858. The Class A Initial Invested Amount is $400,000,000. The Class
A Invested Amount, for any date, will be an amount equal to (a) $400,000,000,
minus (b) the aggregate amount of principal payments made to the Class A
-----
Certificateholders prior to such date, minus (c) the excess, if any, of the
-----
aggregate amount of Class A Investor Charge-Offs for all Distribution Dates
preceding such date over the aggregate amount of Class A Investor Charge-Offs
reimbursed pursuant to Section 4.09 of the Agreement for all Distribution Dates
preceding such date. The Class A Adjusted Invested Amount, for any date, will
be an amount equal to the Class A Invested Amount, minus the Principal Funding
-----
Account Balance on such date. The Adjusted Invested Amount, for any date,
A-4
will be an amount equal to the sum of (a) the Class A Adjusted Invested Amount
and (b) the Collateral Invested Amount. The Invested Percentage, when used with
respect to Principal Receivables during the Revolving Period and Finance Charge
Receivables and Defaulted Receivables at any time, means the percentage
equivalent of a fraction the numerator of which is the Adjusted Invested Amount
for such Distribution Date and the denominator of which is the Aggregate
Principal Receivables for the Due Period relating to such Distribution Date. The
Invested Percentage, when used with respect to Principal Receivables during the
Accumulation Period or the Rapid Amortization Period, means the percentage
equivalent of a fraction the numerator of which is the Invested Amount as of the
end of the day on the last Distribution Date relating to the Revolving Period
and the denominator of which is the greater of (a) Aggregate Principal
Receivables for the Due Period related to the current Distribution Date and (b)
the sum of the numerators used to calculate the Invested Percentages with
respect to Principal Receivables for all Series of Investor Certificates
outstanding for the current Distribution Date. Collections of Finance Charge
Receivables and Principal Receivables will be further allocated between the
Class A Certificates and the Collateral Interest as described in the Agreement.
Interest will be distributed monthly on the fifteenth day of each
month (or, if such fifteenth day is not a Business Day, on the next succeeding
Business Day) (each a "Distribution Date"), commencing December 15, 1997, at the
applicable rate on the Class A Invested Amount as of the preceding Record Date
to each Class A Certificateholder of record as of the Record Date. Interest will
accrue from October 30, 1997 through November 16, 1997 at the rate of 5.74% per
annum, and with respect to each Interest Period thereafter, at a rate of .115%
per annum above LIBOR determined in the manner set forth in the Agreement.
Interest is derived from Collections of Finance Charge Receivables, Excess
Spread, Excess Finance Charge Collections, withdrawals from the Cash Collateral
Account and Reallocated Principal Collections (and, during the Accumulation
Period, from certain amounts withdrawn from the Principal Funding Account and
the Reserve Account), in each case to the extent funds are available from such
source in accordance with the Agreement. The Record Date with respect to any
Distribution Date shall be the last day of the calendar month preceding such
Distribution Date.
A-5
No principal will be payable to Certificateholders until the October
2002 Distribution Date (the "Class A Scheduled Payment Date") or such earlier
date as may result from the occurrence of a Liquidation Event. During the
Revolving Period, Collections of Principal Receivables otherwise allocable to
Certificateholders will be paid to the Seller, to other amortizing or
accumulating Series or, in certain circumstances, to the Collateral Interest
Holder.
As described in the Agreement, Collections of Principal Receivables
with respect to any Due Period will be allocated to the Certificates on the
related Determination Date on the basis of the Invested Percentage with respect
to Principal Receivables. Such Collections will be further allocated between the
Class A Certificates and the Collateral Interest as described in the Agreement.
Such allocations will be performed during the Revolving Period, the Accumulation
Period and the Rapid Amortization Period. Under the Agreement, such Collections
will be paid to the Seller, to other amortizing or accumulating Series or to the
Collateral Interest Holder, as described above, during the Revolving Period.
During the Accumulation Period, Collections of Principal Receivables allocable
to the Class A Certificateholders up to the Controlled Deposit Amount will be
deposited into the Principal Funding Account for the benefit of the Class A
Certificateholders, with the excess paid to the Seller, to other amortizing or
accumulating Series or to the Collateral Interest Holder. During the Rapid
Amortization Period, all Collections of Principal Receivables allocable to the
Certificateholders will be paid to the Class A Certificateholders on each
Distribution Date. In each case, payments to the Class A Certificateholders
shall not exceed the Class A Invested Amount.
Unless or until a Liquidation Event (as described in the Agreement)
shall have occurred, during the period beginning on the first day of the Due
Period relating to the November 2001 Distribution Date, subject to postponement
as described in the Agreement (the "Controlled Accumulation Date"), and ending
on the earlier of (a) but not including, the first day of the Due Period in
which a Liquidation Event occurs or is deemed to have occurred, (b) and
including, the date on which the Invested Amount is paid in full, or (c) the
Series Termination Date (the "Accumulation Period"), Collections of Principal
Receivables allocable to the Class A Certificates up to the Controlled Deposit
Amount will be depos-
A-6
ited into the Principal Funding Account for the benefit of the Class A
Certificateholders monthly on each Distribution Date beginning with the
Distribution Date related to the Due Period in which the Controlled Accumulation
Date occurs. The amount of monthly principal ("Class A Monthly Principal")
allocable to Class A Certificateholders shall equal the sum of (i) an amount
equal to the Class A Principal Percentage of the Fixed Allocation Percentage of
all Collections with respect to Principal Receivables for such Due Period, (ii)
the amount, if any, of Unallocated Principal Collections on deposit in the
Collection Account allocable to the Certificates, (iii) a portion of the amount
of Collections of Principal Receivables allocable to certain other Series but
not needed to make payment to or for the benefit of such Series and (iv) certain
other amounts as described in the Agreement.
If Class A Monthly Principal for the related Due Period is equal to or
greater than the sum of the Controlled Accumulation Amount and the existing
Deficit Controlled Accumulation Amount (such sum, the "Controlled Deposit
Amount"), the amount of the Controlled Deposit Amount will be deposited into the
Principal Funding Account for the benefit of the Class A Certificateholders and
the excess of such sum over the Controlled Deposit Amount will be paid from the
Trust to the Seller, but not more than the First Chicago Amount, to other
amortizing Series or to the Collateral Interest Holder.
If Class A Monthly Principal for the related Due Period is less than
the Controlled Deposit Amount, the entire amount of Class A Monthly Principal
will be deposited into the Principal Funding Account for the
benefit of the Class A Certificateholders and the amount of the excess of the
Controlled Deposit Amount over the Class A Monthly Principal will be the Deficit
Controlled Accumulation Amount for the next succeeding Distribution Date.
During the period beginning on the first day of the Due Period in
which a Liquidation Event occurs or is deemed to occur and continuing to and
including the earlier of the date on which the Invested Amount has been paid in
full or the Series Termination Date (the "Rapid Amortization Period"),
Collections of Principal Receivables allocable to the Class A Certificates will
no longer be paid to the Seller, to other amortizing or accumulating Series, to
the Collateral Interest Holder,
A-7
or to the Principal Funding Account for the benefit of the Class A
Certificateholders (to the extent of the Controlled Deposit Amount) as described
above, but instead will be distributed monthly on each Distribution Date to
Class A Certificateholders. During the Rapid Amortization Period, Class A
Monthly Principal will be paid to the Class A Certificateholders regardless of
the level of any Controlled Accumulation Amount or Controlled Deposit Amount.
On each Distribution Date, the Paying Agent shall distribute to each
Class A Certificateholder of record on the related Record Date such Class A
Certificateholder's pro rata share (based on the aggregate Undivided Interest
--- ----
represented by the Certificate held by such Class A Certificateholder) of
amounts on deposit in the Collection Account and, on the Class A Scheduled
Payment or, if earlier, the first Distribution Date with respect to the Rapid
Amortization Period, in the Principal Funding Account as are payable to the
Class A Certificateholders pursuant to the Agreement. The amount to be
distributed on each Distribution Date to the Certificateholder will be equal to
the product of the aggregate Undivided Interest represented by this Certificate
and the aggregate of all payments to be made to Class A Certificateholders on
such Distribution Date. Distributions with respect to this Certificate will be
made by the Paying Agent by check mailed to the address of the Certificateholder
of record appearing in the Certificate Register without the presentation or
surrender of this Certificate or the making of any notation (except for the
final distribution in respect of this Certificate) except that if all Class A
Certificates are registered in the name of CEDE & CO., the nominee registration
for The Depository Trust Company, distributions will be made in the form of
immediately available funds. Final payment of this Certificate will be made only
upon presentation and surrender of this Certificate at the office or agency
specified in the notice of final distribution delivered by the Trustee to the
Certificateholder in accordance with the Agreement.
On the Distribution Date occurring after the Adjusted Invested Amount
is reduced to 5% of the Initial Invested Amount or less, the Seller may
repurchase the Certificateholders' Interest in the Trust unless certain events
of bankruptcy, insolvency or receivership have occurred with respect to FCCNB.
The repurchase price
A-8
will be equal to the Adjusted Invested Amount plus accrued and unpaid interest
thereon.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST
IN, FCCNB, THE SERVICER (IF THE SERVICER IS NOT FCCNB) OR ANY AFFILIATE OF
EITHER OF THEM (EXCEPT TO THE LIMITED EXTENT DESCRIBED HEREIN) AND IS NOT
INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY. THIS CERTIFICATE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN
COLLECTIONS RESPECTING THE RECEIVABLES (AND CERTAIN OTHER AMOUNTS), ALL AS MORE
SPECIFICALLY SET FORTH HEREINABOVE AND IN THE AGREEMENT.
The Agreement may be amended by the Seller, the Servicer and the
Trustee, without Certificateholder consent, to cure any ambiguity, to correct or
supplement any provision therein which may be inconsistent with any other
provision therein, or to add any other provisions with respect to matters or
questions arising under the Agreement which are not inconsistent with the
provisions of the Agreement. Additionally, the Agreement may be amended from
time to time by the Servicer, the Seller and the Trustee, without the consent of
any of the Certificateholders, to add to or change any of the provisions of the
Agreement to provide that Bearer Certificates may be registrable as to
principal, to change or eliminate any restrictions on the payment of principal
of or any interest on Bearer Certificates to comply with the Bearer Rules, to
permit Bearer Certificates to be issued in exchange for Registered Certificates
(if then permitted by the Bearer Rules), to permit Bearer Certificates to be
issued in exchange for Bearer Certificates of other authorized denominations or
to permit the issuance of Certificates in uncertificated form, provided any such
action shall not adversely affect the interests of the Holders of Bearer
Certificates of any Series or any related Coupons in any material respect. No
such amendment, however, may adversely affect in any material respect the
interests of the Certificateholders unless such amendment is necessary to comply
with the Bearer Rules. Any Supplement and any amendments regarding the addition
to or removal of Receivables from the Trust as provided in Sections 2.05, 2.10
and 6.09 of the Agreement, respectively, shall not be considered amendments to
the Agreement.
Subject to the preceding paragraph, the Agreement may be amended by
the Servicer, the Seller and the
A-9
Trustee with the consent of the Investor Certificateholders owning Undivided
Interests aggregating not less than 66-2/3% of the invested amount of all Series
adversely affected for the purpose of adding any provisions to, changing in any
manner or eliminating any of the provisions of the Agreement or of modifying in
any manner the rights of Investor Certificateholders of any Series then issued
and outstanding, provided, however, that no such amendment shall (a) reduce in
-------- -------
any manner the amount of, or delay the timing of, distributions which are
required to be made on any Investor Certificate without the consent of such
Investor Certificateholder, (b) change the definition of or the manner of
calculating the interest of any Investor Certificateholder, without the consent
of such Investor Certificateholder, or (c) reduce the aforesaid percentage
required to consent to any such amendment, without the consent of such Investor
Certificate holder. Any such amendment and any such consent by the Holder of
this Certificate shall be conclusive and binding on such Certificateholder and
upon all future Holders of this Certificate and of any Certificate issued in
exchange hereof or in lieu hereof whether or not notation thereof is made upon
this Certificate.
The Class A Certificates are issuable only in denominations of $1,000
and integral multiples of $1,000 in excess hereof. The transfer of this
Certificate shall be registered in the Certificate Register upon surrender of
this Certificate for registration of transfer at any office or agency maintained
by the Transfer Agent and Registrar accompanied by a written instrument of
transfer, in a form satisfactory to the Trustee and the Transfer Agent and
Registrar, duly executed by the Certificateholder or the Certificateholder's
attorney, and duly authorized in writing with such signature guaranteed, and
thereupon one or more new Class A Certificates of authorized denominations and
for the same aggregate Undivided Interest will be issued to the designated
transferee or transferees.
As provided in the Agreement and subject to certain limitations
therein set forth, this Certificate is exchangeable for new Class A Certificates
evidencing a like aggregate Undivided Interest, as requested by the
Certificateholder surrendering this Certificate. No service charge may be
imposed for any such exchange but the Servicer, the Seller or the Transfer Agent
and Registrar may require payment of a sum sufficient to cover any
A-10
tax or other governmental charge that may be imposed in connection therewith.
The Servicer, the Trustee, the Paying Agent and the Transfer Agent and
Registrar, and any agent of any of them, may treat the person in whose name this
Certificate is registered as the owner hereof for all purposes, and neither the
Servicer, nor the Trustee, the Paying Agent, the Transfer Agent and Registrar,
nor any agent of any of them shall be affected by notice to the contrary except
in certain circumstances described in the Agreement.
This Certificate shall be construed in accordance with and governed
by the laws of the State of Delaware.
Unless the certificate of authentication hereon has been executed by
or on behalf of the Trustee by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement, or be valid for any purpose.
IN WITNESS WHEREOF, FCCNB has caused this Certificate to be duly
executed.
Dated:
FCC NATIONAL BANK
By:_____________________________
Chairman of the Board
By:_____________________________
Cashier
A-11
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A Certificates described in the within-
mentioned Pooling and Servicing Agreement.
NORWEST BANK MINNESOTA, NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION NATIONAL ASSOCIATION
as Trustee as Trustee
OR
By:
Authorized Officer By: THE FIRST NATIONAL
BANK OF CHICAGO
Authenticating Agent
By:
Authorized Officer
A-12
__________________________
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE(S)
-------------------------------------
__________________________________________
-------------------------------------
(PLEASE PRINT OR TYPEWRITE
NAME AND ADDRESS OF ASSIGNEE)
________________________________________________________________________________
________________________________________________________________________________
the within certificate and all rights thereunder,
and hereby irrevocably constitutes and appoints
________________________________________________________________________________
attorney, with full power of substitution in the
premises, to transfer said certificate on the books
kept for registration thereof.
Dated:_________________
___________________________
Note: The signature(s)
to this Assignment must
correspond with the
name(s) as written on the
face of the within
certificate in every
particular, without
alteration or enlargement
or any change whatever.
A Non-U.S. Person as defined in the Code must certify to the Trustee in writing
as to its Non-U.S. Person status and such further information as may be required
under the Code or reasonably requested by the Trustee.
A-13
EXHIBIT B
---------
FORM OF CERTIFICATEHOLDERS' PAYMENT DATE STATEMENT
(To be delivered by the Payment Agent on each
Payment Date pursuant to Section 5.02(a) of
the Pooling and Servicing Agreement)
FCC NATIONAL BANK
_________________________________________________
FIRST CHICAGO MASTER TRUST II
SERIES 1997-U
__________________________________________________
Under the Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement") dated as of June 1, 1990 by and between FCC National Bank, as Seller
and Servicer ("FCCNB"), and Norwest Bank Minnesota, National Association, as
Trustee (the "Trustee"), as amended and supplemented by the Series 1997-U
Supplement dated as of October 1, 1997 by and between FCCNB and the Trustee,
FCCNB, as Servicer, is required to prepare certain information for each Payment
Date regarding current distributions to Class A Certificateholders and the
performance of the First Chicago Master Trust II (the "Trust") during the
previous period. The information which is required to be prepared with respect
to the distribution on the _________________, 199_ Payment Date and with respect
to the performance of the Trust during the Due Period for such Payment Date is
set forth below. Certain of the information is presented on the aggregate
amounts for the Trust as a whole. All capitalized terms used herein shall have
the respective meanings set forth in the Pooling and Servicing Agreement.
B-1
A. Information Regarding the Current Distribution
----------------------------------------------
(Stated on the Basis of $1,000 Original
---------------------------------------
Principal Amount).
-----------------
1. The total amount of the distri-
bution to Class A Certificate-
holders on the Payment Date
per $1,000 interest................... $________
2. The amount of the distribution
set forth in paragraph 1 above
in respect of principal on the
Class A Certificates, per
$1,000 interest....................... $________
3. The amount of the distribution
set forth in paragraph 1 above
in respect of interest on the
Class A Certificates, per
$1,000 interest....................... $________
B. Information Regarding the Performance of the Trust.
--------------------------------------------------
1. Collections of Receivables.
--------------------------
a. The aggregate amount of Collections
of Receivables processed for the Due
Period with respect to the current
Distribution Date which were allo-
cated in respect of the Investor
Certificates of all Series............ $________
b. The aggregate amount of Collections
of Receivables processed for
the Due Period with respect to
the current Distribution Date which
were allocated in respect of the
Series 1997-U Certificates............ $________
c. The aggregate amount of Collections
of Receivables processed for
the Due Period with respect to
the current Distribution Date which
were allocated in respect of the
Class A Certificates.................. $________
B-2
d. The amount of Collections of
Receivables processed for the
Due Period with respect to the
current Distribution Date which
were allocated in respect of
Class A Certificates, per $1,000
interest............................... $________
e. The amount of Excess Spread for the
Due Period with respect to the cur-
rent Distribution Date................. $________
f. The amount of Reallocated Principal
Collections for the Due Period with
respect to the current Distribution
Date allocated in respect of the Class
A Certificates......................... $________
g. The amount of Excess Finance Charge
Collections allocated in respect of
the Series 1997-U Certificates, if
any.................................... $________
h. The amount of Excess Principal Col-
lections allocated in respect of the
Series 1997-U Certificates, if any..... $________
2. Receivables in Trust.
--------------------
a. Aggregate Principal Receivables for
the Due Period with respect to the
current Distribution Date (which
reflects the Principal Receivables
represented by the Exchangeable
Seller's Certificate and by the
Investor Certificates of all
Series)................................ $________
b. The amount of Principal Receivables
in the Trust represented by the
Series 1997-U Certificates (the
"Adjusted Invested Amount")
for the Due Period with respect to
the current Distribution Date.......... $________
B-3
c. The amount of Principal Receivables
in the Trust represented by the
Class A Certificates (the "Class A
Adjusted Invested Amount") for the Due
Period with respect to the current -
Distribution Date...................... $________
d. The Invested Amount for the Due
Period with respect to the current
Distribution Date...................... $________
e. The Class A Invested Amount for
the Due Period with respect to the
current Distribution Date.............. $________
f. The Invested Percentage with respect
to Finance Charge Receivables
(including Interchange) and Defaulted
Receivables for the Series 1997-U
Certificates for the Due Period with
respect to the current Distribution
Date................................... ________%
g. The Invested Percentage with respect
to Principal Receivables for the
Series 1997-U Certificates for the Due
Period with respect to the current
Distribution Date...................... ________%
h. The Class A Floating Percentage
for the Due Period with respect
to the current Distribution Date....... ________%
i. The Class A Principal Percentage
for the Due Period with respect
to the current Distribution Date....... ________%
j. The Collateral Floating Percentage
for the Due Period with respect
to the current Distribution Date....... ________%
k. The Collateral Principal Percentage
for the Due Period with respect
to the current Distribution Date....... ________%
B-4
3. Delinquent Balances.
-------------------
The aggregate amount of outstanding
balances in the Accounts which were 30
or more days delinquent as of the end
of the Due Period for the current
Distribution Date...................... $________
4. Investor Default Amount.
-----------------------
a. The aggregate amount of all
Defaulted Receivables written off
as uncollectible during the Due Period
with respect to the current Distri-
bution Date allocable to the Series
1997-U Certificates (the "Investor
Default Amount")....................... $________
b. The Class A Investor Default
Amount................................. $________
c. The Collateral Investor Default
Amount................................. $________
5. Investor Charge-Offs.
--------------------
a. The amount of the Class A Investor
Charge-Offs per $1,000 interest
after reimbursement of any such
Class A Investor Charge-Offs for
the Due Period with respect to the
current Distribution Date.............. $________
b. The amount attributable to Class A
Investor Charge-Offs, if any, by
which the principal balance of the
Class A Certificates exceeds the
Class A Adjusted Invested Amount
as of the end of the day on the
Record Date with respect to the
current Distribution Date.............. $________
c. The amount of the Collateral Charge-
Offs, if any, for the Due Period with
respect to the current Distribution
Date................................... $________
B-5
6. Monthly Servicing Fee.
---------------------
a. The amount of the Monthly Servicing
Fee payable by the Trust to the
Servicer with respect to the
current Distribution Date.............. $________
b. The amount of the Interchange Monthly
Servicing Fee payable to the Servicer
with respect to the current
Distribution Date...................... $________
7. Available Cash Collateral Amount.
--------------------------------
a. The amount, if any, withdrawn from
the Cash Collateral Account for the
current Distribution Date (the
"Withdrawal Amount")................... $________
b. The amount available to be withdrawn
from the Cash Collateral Account as of
the end of the day on the current Dis-
tribution Date, after giving effect to
all withdrawals, deposits and payments
to be made on such Distribution Date
(the "Available Cash Collateral
Amount" for the next Distribution
Date) $________
c. The amount as computed in 7.b as a
percentage of the Class A Adjusted
Invested Amount after giving effect
to all reductions thereof on the
current Distribution Date $________
8. Collateral Invested Amount.
--------------------------
a. The Collateral Invested Amount for
the current Distribution Date $________
b. The Collateral Invested Amount
after giving effect to all with-
drawals, deposits and payments on
the current Distribution Date $________
9. Total Enhancement.
-----------------
a. The total Enhancement for the current
Distribution Date $________
B-6
b. The total Enhancement after giving
effect to all withdrawals, deposits
and payments on the current Distri-
bution Date.......................... $________
C. The Pool Factor.
---------------
1. The Pool Factor (which represents
the ratio of the Class A Invested
Amount on the last day of the month
ending on the Record Date adjusted
for Class A Investor Charge-Offs
set forth in B.5.a above and for
the distributions of principal set
forth in A.2 above to the Class A
Initial Invested Amount). The
amount of a Class A Certificate-
holder's pro rata share of the
Class A Invested Amount can be
determined by multiplying the
original denomination of the
holder's Class A Certificate by
the Pool Factor...................... ________%
D. Principal Funding Account.
-------------------------
1. The Principal Funding Investment
Proceeds deposited in the Collection
Account for the current Distribu-
tion Date to be treated as Class A
Available Funds . . . . . . . . . . . $________
2. The Excess Principal Funding
Investment Proceeds for the
current Distribution Date . . . . . . $________
3. The Principal Funding Account
Balance as of the end of the
day on the current Distribution
Date . . . . . . . . . . . . . . . . $________
4. The Deficit Controlled Accumulation
Amount for the preceding
Due Period . . . . . . . . . . . . . $________
B-7
E. Reserve Account.
---------------
1. The Reserve Draw Amount for
the current Distribution Date . . . . $________
2. The amount on deposit in the
Reserve Account as of the end
of the day on the current Dis-
tribution Date (the "Available
Reserve Account Amount" for
the next Distribution Date) . . . . $________
FCC NATIONAL BANK,
Servicer
By___________________________
Title:
B-8
