PURCHASE AGREEMENT dated as of [ ], 20[ ] between SANTANDER CONSUMER USA INC. and SANTANDER DRIVE AUTO RECEIVABLES LLC, as Purchaser
Exhibit
10.1
dated as of [ ], 20[ ]
between
SANTANDER CONSUMER USA INC.
and
SANTANDER DRIVE AUTO RECEIVABLES LLC,
as Purchaser
as Purchaser
TABLE
OF CONTENTS
| Page | ||||
ARTICLE I DEFINITIONS AND USAGE |
1 | |||
SECTION 1.1 Definitions |
1 | |||
SECTION 1.2 Other Interpretive Provisions |
1 | |||
ARTICLE II PURCHASE |
2 | |||
SECTION 2.1 Agreement to Sell and Contribute on the Closing Date |
2 | |||
SECTION 2.2 Consideration and Payment |
2 | |||
ARTICLE III REPRESENTATIONS, WARRANTIES AND COVENANTS |
2 | |||
SECTION 3.1 Representations and Warranties of Santander Consumer |
2 | |||
SECTION 3.2 Representations and Warranties of Santander Consumer as to each
Receivable |
3 | |||
SECTION 3.3 Repurchase upon Breach |
4 | |||
SECTION 3.4 Protection of Title |
4 | |||
SECTION 3.5 Other Liens or Interests |
5 | |||
SECTION 3.6 Perfection Representations, Warranties and Covenants |
6 | |||
ARTICLE IV MISCELLANEOUS |
6 | |||
SECTION 4.1 Transfers Intended as Sale; Security Interest |
6 | |||
SECTION 4.2
Notices, Etc. |
7 | |||
SECTION 4.3 Choice of Law |
7 | |||
SECTION 4.4 Headings |
7 | |||
SECTION 4.5 Counterparts |
7 | |||
SECTION 4.6 Amendment |
7 | |||
SECTION 4.7 Waivers |
8 | |||
SECTION 4.8 Entire Agreement |
9 | |||
SECTION 4.9 Severability of Provisions |
9 | |||
SECTION 4.10 Binding Effect |
9 | |||
SECTION 4.11 Acknowledgment and Agreement |
9 | |||
SECTION 4.12 Cumulative Remedies |
9 | |||
SECTION 4.13 Nonpetition Covenant |
9 | |||
SECTION 4.14 Submission to Jurisdiction; Waiver of Jury Trial |
10 | |||
SECTION 4.15 Third-Party Beneficiaries |
10 | |||
SECTION 4.16 Limitation of Rights |
10 | |||
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SCHEDULE I Perfection Representations, Warranties and Covenants
EXHIBIT A Form of Assignment
Purchase Agreement (20[ ]-[ ])
-ii-
THIS PURCHASE AGREEMENT is made and entered into as of [ ], 20[ ] (as amended,
supplemented or otherwise modified and in effect from time to time, this “Agreement”) by
SANTANDER CONSUMER USA INC., an Illinois corporation (“Santander Consumer”), and SANTANDER
DRIVE AUTO RECEIVABLES LLC, a Delaware limited liability company (the “Purchaser”).
WITNESSETH:
WHEREAS, the Purchaser desires to purchase from Santander Consumer a portfolio of motor
vehicle receivables, including motor vehicle retail installment sales contracts and/or installment
loans that are secured by new and used automobiles and light-duty trucks; and
WHEREAS, Santander Consumer is willing to sell such portfolio of motor vehicle receivables and
related property to the Purchaser on the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein,
the parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND USAGE
SECTION 1.1 Definitions. Except as otherwise defined herein or as the context may
otherwise require, capitalized terms used but not otherwise defined herein are defined in
Appendix A to the Sale and Servicing Agreement dated as of the date hereof (as from time to
time amended, supplemented or otherwise modified and in effect, the “Sale and Servicing
Agreement”) among Santander Drive Auto Receivables Trust 20[ ]-[ ], Santander Consumer, as
Servicer, the Purchaser, as Seller, and [ ], as Indenture Trustee, which also contains
rules as to usage that are applicable herein.
SECTION 1.2 Other Interpretive Provisions. For purposes of this Agreement, unless the
context otherwise requires: (a) accounting terms not otherwise defined in this Agreement, and
accounting terms partly defined in this Agreement to the extent not defined, shall have the
respective meanings given to them under GAAP (provided, that, to the extent that the definitions in
this Agreement and GAAP conflict, the definitions in this Agreement shall control); (b) terms
defined in Article 9 of the UCC as in effect in the relevant jurisdiction and not otherwise defined
in this Agreement are used as defined in that Article; (c) the words “hereof,” “herein” and
“hereunder” and words of similar import refer to this Agreement as a whole and not to any
particular provision of this Agreement; (d) references to any Article, Section, Schedule, Appendix
or Exhibit are references to Articles, Sections, Schedules, Appendices and Exhibits in or to this
Agreement and references to any paragraph, subsection, clause or other subdivision within any
Section or definition refer to such paragraph, subsection, clause or other subdivision of such
Section or definition; (e) the term “including” and all variations thereof means “including without
limitation”; (f) except as otherwise expressly provided herein, references to any law or regulation
refer to that law or regulation as amended from time to time and include any successor law or
regulation; (g) references to any Person include that Person’s successors and assigns; and
Purchase Agreement (20[ ]-[ ])
(h) headings are for purposes of reference only and shall not otherwise affect the meaning or
interpretation of any provision hereof.
ARTICLE II
PURCHASE
SECTION 2.1 Agreement to Sell and Contribute on the Closing Date. On the terms and
subject to the conditions set forth in this Agreement, Santander Consumer does hereby irrevocably
sell, transfer, assign, contribute and otherwise convey to the Purchaser without recourse (subject
to the obligations herein) on the Closing Date all of Santander Consumer’s right, title and
interest in, to and under the Receivables, the Collections after the Cut-Off Date, the Receivable
Files and the Related Security relating thereto, whether now owned or hereafter acquired,
identified in an Assignment substantially in the form of Exhibit A delivered on the Closing
Date (collectively, the “Purchased Assets”). The sale, transfer, assignment, contribution
and conveyance made hereunder does not constitute and is not intended to result in an assumption by
the Purchaser of any obligation of the Santander Consumer or any Originator to the Obligors, the
Dealers or any other Person in connection with the Receivables or the other assets and properties
conveyed hereunder or any agreement, document or instrument related thereto.
SECTION 2.2 Consideration and Payment. In consideration of the sale of the Purchased
Assets sold to the Purchaser on the Closing Date, the Purchaser shall pay to Santander Consumer on
such date an amount equal to the estimated fair market value of the Purchased Assets, which amount
shall be paid (a) in cash to Santander Consumer and (b) by a capital contribution by Santander
Consumer of an undivided interest in such Purchased Assets that increases its equity interest in
the Purchaser in an amount equal to the excess of the estimated fair market value of the Purchased
Assets over the amount of cash paid by the Purchaser to Santander Consumer.
ARTICLE III
REPRESENTATIONS, WARRANTIES AND COVENANTS
SECTION 3.1 Representations and Warranties of Santander Consumer. Santander Consumer
makes the following representations and warranties as of the Closing Date, on which the Purchaser
will be deemed to have relied in acquiring the Purchased Assets. The representations and
warranties will survive the conveyance of the Purchased Assets to the Purchaser pursuant to this
Agreement, the conveyance of the Purchased Assets to the Issuer pursuant to the Sale and Servicing
Agreement and the Grant thereof by the Issuer to the Indenture Trustee pursuant to the Indenture:
(a) Existence and Power. Santander Consumer is a corporation validly existing and in
good standing under the laws of its state of organization and has, in all material respects, full
power and authority to own its assets and operate its business as presently owned or operated, and
to execute, deliver and to perform its obligations under the Transaction Documents to which it is a
party. Santander Consumer has obtained all necessary licenses and approvals in each jurisdiction
where the failure to do so would materially and adversely affect the ability of
Purchase Agreement (20[ ]-[ ])
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Santander Consumer to perform its obligations under the Transaction Documents or affect the
enforceability or collectibility of the Receivables or any other part of the Purchased Assets.
(b) Authorization and No Contravention. The execution, delivery and performance by
Santander Consumer of the Transaction Documents to which it is a party have been duly authorized by
all necessary corporate action on the part of Santander Consumer and do not contravene or
constitute a default under (i) any applicable law, rule or regulation, (ii) its organizational
documents or (iii) any material indenture or material agreement or instrument to which Santander
Consumer is a party or by which its properties are bound (other than violations of such laws,
rules, regulations, indentures or agreements which do not affect the legality, validity or
enforceability of any of such agreements and which, individually or in the aggregate, would not
materially and adversely affect the transactions contemplated by, or Santander Consumer’s ability
to perform its obligations under, the Transaction Documents).
(c) No Consent Required. No approval or authorization by, or filing with, any
Governmental Authority is required in connection with the execution, delivery and performance by
Santander Consumer of any Transaction Document other than (i) UCC filings, (ii) approvals and
authorizations that have previously been obtained and filings that have previously been made and
(iii) approvals, authorizations or filings which, if not obtained or made, would not have a
material adverse effect on the enforceability or collectibility of the Receivables or any other
part of the Purchased Assets or would not materially and adversely affect the ability of Santander
Consumer to perform its obligations under the Transaction Documents.
(d) Binding Effect. Each Transaction Document to which Santander Consumer is a party
constitutes the legal, valid and binding obligation of Santander Consumer enforceable against
Santander Consumer in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or
other similar laws affecting the enforcement of creditors’ rights generally and, if applicable, the
rights of creditors of corporations from time to time in effect or by general principles of equity.
(e) No Proceedings. There are no actions, orders, suits or proceedings pending or, to
the knowledge of Santander Consumer, threatened against Santander Consumer before or by any
Governmental Authority that (i) assert the invalidity or unenforceability of this Agreement or any
of the other Transaction Documents, (ii) seek to prevent the issuance of the Notes or the
consummation of any of the transactions contemplated by this Agreement or any of the other
Transaction Documents, (iii) seek any determination or ruling that would materially and adversely
affect the performance by Santander Consumer of its obligations under this Agreement or any of the
other Transaction Documents or (iv) relate to Santander Consumer that would materially and
adversely affect the federal or Applicable Tax State income, excise, franchise or similar tax
attributes of the Notes.
(f) Lien Filings. Santander Consumer is not aware of any material judgment, ERISA or
tax lien filings against Santander Consumer.
SECTION 3.2 Representations and Warranties of Santander Consumer as to each
Receivable. On the date hereof, Santander Consumer hereby makes the representations and
Purchase Agreement (20[ ]-[ ])
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warranties set forth on Schedule I to the Sale and Servicing Agreement to the
Purchaser as to the Receivables sold, transferred, assigned, contributed and otherwise conveyed to
the Purchaser under this Agreement on which such representations and warranties the Purchaser
relies in acquiring the Receivables. Such representations and warranties shall survive the sale of
the Receivables to the Issuer under the Sale and Servicing Agreement, and the Grant of the
Receivables by the Issuer to the Indenture Trustee pursuant to the Indenture. Notwithstanding any
statement to the contrary contained herein or in any other Transaction Document, Santander Consumer
shall not be required to notify any insurer with respect to any Insurance Policy obtained by an
Obligor or to notify any Dealer about any aspect of the transaction contemplated by the Transaction
Documents.
SECTION 3.3 Repurchase upon Breach. Upon discovery by or notice to the Purchaser or
Santander Consumer of a breach of any of the representations and warranties set forth in
Section 3.2 at the time such representations and warranties were made which materially and
adversely affects the interests of the Issuer or the Noteholders, the party discovering such breach
or receiving such notice shall give prompt written notice thereof to the other party; provided,
that delivery of the Servicer’s Certificate shall be deemed to constitute prompt notice by the
Servicer and the Purchaser of such breach; provided, further, that the failure to give such notice
shall not affect any obligation of Santander Consumer hereunder. If the breach materially and
adversely affects the interests of the Purchaser, the Issuer or the Noteholders in such Receivable,
then Santander Consumer shall either (a) correct or cure such breach or (b) repurchase such
Receivable from the Purchaser, in either case on or before the Payment Date following the end of
the Collection Period which includes the 60th day (or, if Santander Consumer elects, an earlier
date) after the date Santander Consumer became aware or was notified of such breach. Any such
breach or failure will not be deemed to have a material and adverse effect if such breach or
failure does not affect the ability of the Purchaser (or its assignee) to receive and retain timely
payment in full on such Receivable. Any such purchase by Santander Consumer shall be at a price
equal to the related Repurchase Price. In consideration for such repurchase, Santander Consumer
shall make (or shall cause to be made) a payment to the Purchaser equal to the Repurchase Price by
depositing such amount into the Collection Account prior to noon, New York City time on such date
of repurchase. Upon payment of such Repurchase Price by Santander Consumer, the Purchaser shall
release and shall execute and deliver such instruments of release, transfer or assignment, in each
case without recourse or representation, as may be reasonably requested by Santander Consumer to
evidence such release, transfer or assignment or more effectively vest in Santander Consumer or its
designee any Receivable and related Purchased Assets repurchased pursuant to this Section
3.3. It is understood and agreed that the obligation of Santander Consumer to purchase any
Receivable as described above shall constitute the sole remedy respecting such breach available to
the Purchaser.
SECTION 3.4 Protection of Title.
(a) Santander Consumer shall authorize and file such financing statements and cause to be
authorized and filed such continuation and other statements, all in such manner and in such places
as may be required by law fully to preserve, maintain and protect the interest of the Purchaser
under this Agreement in the Receivables (other than any Related Security with respect thereto, to
the extent that the interest of the Purchaser therein cannot be perfected by the filing of a
financing statement). Santander Consumer shall deliver (or cause to be delivered) to the
Purchase Agreement (20[ ]-[ ])
-4-
Purchaser file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.
(b) Santander Consumer shall notify the Purchaser in writing within ten (10) days following
the occurrence of (i) any change in Santander Consumer’s organizational structure as a corporation,
(ii) any change in Santander Consumer’s “location” (within the meaning of Section 9-307 of the UCC
of all applicable jurisdictions) and (iii) any change in Santander Consumer’s name, and shall have
taken all action prior to making such change (or shall have made arrangements to take such action
substantially simultaneously with such change, if it is not possible to take such action in
advance) reasonably necessary or advisable in the opinion of the Purchaser to amend all previously
filed financing statements or continuation statements described in paragraph (a) above.
(c) Santander Consumer shall maintain (or shall cause its Sub-Servicer to maintain) accounts
and records as to each Receivable accurately and in sufficient detail to permit (i) the reader
thereof to know at any time the status of such Receivable, including payments and recoveries made
and payment owing (and the nature of each) and (ii) reconciliation between payments or recoveries
on (or with respect to) each Receivable and the amounts from time to time deposited in the
Collection Account in respect of such Receivable.
(d) Santander Consumer shall maintain (or shall cause its Sub-Servicer to maintain) its
computer systems so that, from time to time after the conveyance under this Agreement of the
Receivables, the master computer records (including any backup archives) that refer to a Receivable
shall indicate clearly the interest of the Purchaser (or any subsequent assignee of the Purchaser)
in such Receivable and that such Receivable is owned by such Person. Indication of such Person’s
interest in a Receivable shall not be deleted from or modified on such computer systems until, and
only until, the related Receivable shall have been paid in full or repurchased.
(e) If at any time Santander Consumer shall propose to sell, grant a security interest in or
otherwise transfer any interest in motor vehicle receivables to any prospective purchaser, lender
or other transferee, Santander Consumer shall give to such prospective purchaser, lender or other
transferee computer tapes, records or printouts (including any restored from backup archives) that,
if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such
Receivable has been sold and is owned by the Purchaser (or any subsequent assignee of the
Purchaser).
SECTION 3.5 Other Liens or Interests. Except for the conveyances and grants of
security interests pursuant to this Agreement and the other Transaction Documents, Santander
Consumer shall not sell, pledge, assign or transfer the Receivables or other property transferred
to the Purchaser to any other Person, or grant, create, incur, assume or suffer to exist any Lien
(other than Permitted Liens) on any interest therein, and Santander Consumer shall defend the
right, title and interest of the Purchaser in, to and under such Receivables or other property
transferred to the Purchaser against all claims of third parties claiming through or under
Santander Consumer.
SECTION 3.6 Perfection Representations, Warranties and Covenants. Santander Consumer
hereby makes the perfection representations, warranties and covenants attached hereto
Purchase Agreement (20[ ]-[ ])
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as Schedule I to the Purchaser and the Purchaser shall be deemed to have relied on
such representations, warranties and covenants in acquiring the Purchased Assets.
ARTICLE IV
MISCELLANEOUS
SECTION 4.1 Transfers Intended as Sale; Security Interest.
(a) Each of the parties hereto expressly intends and agrees that the transfers contemplated
and effected under this Agreement are complete and absolute sales and transfers rather than pledges
or assignments of only a security interest and shall be given effect as such for all purposes. It
is further the intention of the parties hereto that the Receivables and related Purchased Assets
shall not be part of Santander Consumer’s estate in the event of a bankruptcy or insolvency of
Santander Consumer. The sales and transfers by Santander Consumer of the Receivables and related
Purchased Assets hereunder are and shall be without recourse to, or representation or warranty
(express or implied) by, Santander Consumer, except as otherwise specifically provided herein. The
limited rights of recourse specified herein against Santander Consumer are intended to provide a
remedy for breach of representations and warranties relating to the condition of the property sold,
rather than to the collectibility of the Receivables.
(b) Notwithstanding the foregoing, in the event that the Receivables and other Purchased
Assets are held to be property of Santander Consumer, or if for any reason this Agreement is held
or deemed to create indebtedness or a security interest in the Receivables and other Purchased
Assets, then it is intended that:
(i) This Agreement shall be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the New York UCC and the UCC of any other applicable jurisdiction;
(ii) The conveyance provided for in Section 2.1 shall be deemed to be a grant
by Santander Consumer of, and Santander Consumer hereby grants to the Purchaser, a security
interest in all of its right (including the power to convey title thereto), title and
interest, whether now owned or hereafter acquired, in and to the Receivables and other
Purchased Assets, to secure such indebtedness and the performance of the obligations of
Santander Consumer hereunder;
(iii) The possession by the Purchaser or its agent of the Receivable Files and any
other property as constitute instruments, money, negotiable documents or chattel paper shall
be deemed to be “possession by the secured party” or possession by the purchaser or a person
designated by such purchaser, for purposes of perfecting the security interest pursuant to
the New York UCC and the UCC of any other applicable jurisdiction; and
(iv) Notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed to be notifications to, or
acknowledgments, receipts or confirmations from, bailees or agents
Purchase Agreement (20[ ]-[ ])
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(as applicable) of the Purchaser for the purpose of perfecting such security interest
under applicable law.
SECTION 4.2 Notices, Etc. All demands, notices and communications hereunder shall be
in writing and shall be delivered or mailed by registered or certified first-class United States
mail, postage prepaid, hand delivery, prepaid courier service, or by facsimile, and addressed in
each case as specified on Schedule II to the Sale and Servicing Agreement or at such other
address as shall be designated by any of the specified addressees in a written notice to the other
parties hereto. Any notice required or permitted to be mailed to a Noteholder shall be given by
first class mail, postage prepaid, at the address of such Noteholder as shown in the Note Register.
Delivery shall occur only upon receipt or reported tender of such communication by an officer of
the recipient entitled to receive such notices located at the address of such recipient for notices
hereunder; provided, however, that any notice to a Noteholder mailed within the time prescribed in
this Agreement shall be conclusively presumed to have been duly given, whether or not the
Noteholder shall receive such notice.
SECTION 4.3 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE
RULES THEREOF RELATING TO CONFLICTS OF LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.
SECTION 4.4 Headings. The section headings hereof have been inserted for convenience
only and shall not be construed to affect the meaning, construction or effect of this Agreement.
SECTION 4.5 Counterparts. This Agreement 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 4.6 Amendment.
(a) Any term or provision of this Agreement may be amended by Santander Consumer and the
Purchaser without the consent of the Indenture Trustee, any Noteholder, the Issuer, the Owner
Trustee or any other Person subject to the satisfaction of one of the following conditions:
(i) Santander Consumer or the Purchaser delivers an Opinion of Counsel to the Indenture
Trustee to the effect that such amendment will not materially and adversely affect the
interests of the Noteholders;
(ii) Santander Consumer or the Purchaser delivers an Officer’s Certificate of Santander
Consumer or the Purchaser, respectively, to the Indenture Trustee to the effect that such
amendment will not materially and adversely affect the interests of the Noteholders; or
Purchase Agreement (20[ ]-[ ])
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(iii) Santander Consumer or the Purchaser notifies the Indenture Trustee in writing
that the Rating Agency Condition is satisfied with respect to such amendment;
provided, that no amendment shall be effective which affects the rights, protections or duties of
the Indenture Trustee or the Owner Trustee without the prior written consent of such Person[;
provided, further, that such amendment shall not materially and adversely affect the rights or
obligations of the Swap Counterparty or the Issuer under the Interest Rate Swap Agreement unless
the Swap Counterparty shall have consented in writing to such amendment (which consent shall not be
unreasonably withheld or delayed)].
(b) Any term or provision of this Agreement may be amended by Santander Consumer and the
Purchaser without the consent of the Indenture Trustee, any Noteholder, the Issuer, the Owner
Trustee or any other Person to add, modify or eliminate any provisions as may be necessary or
advisable in order to enable Santander Consumer, the Purchaser or any of their Affiliates to comply
with or obtain more favorable treatment under any law or regulation or any accounting rule or
principle (whether now or in the future in effect), it being a condition to any such amendment that
the Rating Agency Condition shall have been satisfied.
(c) This Agreement may also be amended from time to time by Santander Consumer and the
Purchaser, with the consent of the Holders of Notes evidencing not less than a majority of the
aggregate principal balance of the Controlling Class, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Noteholders. It will not be necessary for the consent of Noteholders
to approve the particular form of any proposed amendment or consent, but it will be sufficient if
such consent approves the substance thereof. The manner of obtaining such consents (and any other
consents of Noteholders provided for in this Agreement) and of evidencing the authorization of the
execution thereof by Noteholders will be subject to such reasonable requirements as the Indenture
Trustee may prescribe, including the establishment of record dates pursuant to the Note Depository
Agreement.
(d) Prior to the execution of any such amendment, Santander Consumer shall provide written
notification of the substance of such amendment to each Rating Agency; and promptly after the
execution of any such amendment or consent, Santander Consumer shall furnish a copy of such
amendment or consent to each Rating Agency and the Indenture Trustee.
(e) Prior to the execution of any amendment to this Agreement, the Purchaser, the Owner
Trustee and the Indenture Trustee shall be entitled to receive and conclusively rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this
Agreement and that all conditions precedent to the execution and delivery of such amendment have
been satisfied. The Owner Trustee and the Indenture Trustee may, but shall not be obligated to,
enter into any such amendment which adversely affects the Owner Trustee’s or the Indenture
Trustee’s, as applicable, own rights, duties or immunities under this Agreement.
SECTION 4.7 Waivers. No failure or delay on the part of the Purchaser, the Servicer,
Santander Consumer, the Issuer or the Indenture Trustee in exercising any power or right hereunder
(to the extent such Person has any power or right hereunder) shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power or right preclude any other or further
exercise thereof or the exercise of any other power or right. No notice to or demand on
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the Purchaser or Santander Consumer in any case shall entitle it to any notice or demand in
similar or other circumstances. No waiver or approval by either party under this Agreement shall,
except as may otherwise be stated in such waiver or approval, be applicable to subsequent
transactions. No waiver or approval under this Agreement shall require any similar or dissimilar
waiver or approval thereafter to be granted hereunder.
SECTION 4.8 Entire Agreement. The Transaction Documents contain a final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
thereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter thereof, superseding all prior oral or written understandings. There are no
unwritten agreements among the parties.
SECTION 4.9 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.
SECTION 4.10 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms, and shall remain in full force and effect until such time as the parties
hereto shall agree.
SECTION 4.11 Acknowledgment and Agreement. By execution below, Santander Consumer
expressly acknowledges and consents to the sale of the Purchased Assets and the assignment of all
rights and obligations of Santander Consumer related thereto and under this Agreement by the
Purchaser to the Issuer pursuant to the Sale and Servicing Agreement and the Grant of a security
interest in the Receivables and the other Purchased Assets by the Issuer to the Indenture Trustee
pursuant to the Indenture for the benefit of the Noteholders [and the Swap Counterparty]. In
addition, Santander Consumer hereby acknowledges and agrees that for so long as the Notes are
outstanding, the Indenture Trustee will have the right to exercise all powers, privileges and
claims of the Purchaser under this Agreement.
SECTION 4.12 Cumulative Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
SECTION 4.13 Nonpetition Covenant. Each party hereto agrees that, prior to the date
which is one year and one day after payment in full of all obligations of each Bankruptcy Remote
Party in respect of all securities issued by any Bankruptcy Remote Party (i) such party hereto
shall not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other
voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a
trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case or
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other proceeding commenced against such Bankruptcy Remote Party, or to make a general
assignment for the benefit of its creditors generally, any party hereto or any other creditor of
such Bankruptcy Remote Party, and (ii) none of the parties hereto shall commence or join with any
other Person in commencing any proceeding against such Bankruptcy Remote Party under any
bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in effect in
any jurisdiction. This Section shall survive the termination of this Agreement.
SECTION 4.14 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties
hereto hereby irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or proceeding relating to this
Agreement or any documents executed and delivered in connection herewith, or for recognition and
enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of America for the Southern
District of New York and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
(c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 4.2 of this
Agreement;
(d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to xxx in any other jurisdiction; and
(e) to the extent permitted by applicable law, each party hereto irrevocably waives all right
of trial by jury in any action, proceeding or counterclaim based on, or arising out of, under or in
connection with this Agreement, any other Transaction Document, or any matter arising hereunder or
thereunder.
SECTION 4.15 Third-Party Beneficiaries. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and the Noteholders and their respective successors and
permitted assigns and each of the Issuer and the Indenture Trustee shall be an express third-party
beneficiary hereof and may enforce the provisions hereof as if it were a party hereto. Except as
otherwise provided in this Section, no other Person will have any right hereunder.
SECTION 4.16 [Limitation of Rights. All of the rights of the Swap Counterparty in, to
and under this Agreement, if any, shall terminate upon the termination of the Interest Rate Swap
Agreement in accordance with the terms thereof and the payment in full of all amounts owing to the
Swap Counterparty under such Interest Rate Swap Agreement.]
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Purchase Agreement (20[ ]-[ ])
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first written above.
| SANTANDER CONSUMER USA INC. |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Purchase Agreement (20[ ]-[ ])
S-1
EXHIBIT A
FORM OF
ASSIGNMENT PURSUANT TO PURCHASE AGREEMENT
ASSIGNMENT PURSUANT TO PURCHASE AGREEMENT
[ ], 20[ ]
For value received, in accordance with the Purchase Agreement (the “Agreement”) dated
as of [___], 20[ ], between Santander Consumer USA Inc., an Illinois corporation
(“Santander Consumer”), and Santander Drive Auto Receivables LLC, a Delaware limited
liability company (the “Purchaser”), on the terms and subject to the conditions set forth
in the Agreement, Santander Consumer does hereby irrevocably sell, transfer, assign, contribute
and otherwise convey to the Purchaser on the Closing Date, without recourse (subject to the
obligations in the Agreement), all right, title and interest of Santander Consumer, whether now
owned or hereafter acquired, in, to and under the Receivables set forth on the schedule of
Receivables delivered by Santander Consumer to the Purchaser on the date hereof (such schedule, the
“Schedule of Receivables”), the Collections after the Cut-Off Date, the Receivables Files
and the Related Security relating thereto, which sale shall be effective as of the Cut-Off Date.
The foregoing sale does not constitute and is not intended to result in an assumption by the
Purchaser of any obligation of any Originator to the Obligors, the Dealers, insurers or any other
Person in connection with the Receivables, or the other assets and properties conveyed hereunder or
any agreement, document or instrument related thereto.
This assignment is made pursuant to and upon the representations, warranties and agreements on
the part of the undersigned contained in the Agreement and is governed by the Agreement.
Capitalized terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement.
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Purchase Agreement (20[ ]-[ ])
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IN WITNESS HEREOF, the undersigned has caused this assignment to be duly executed as of the
date first above written.
| SANTANDER CONSUMER USA INC. |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Purchase Agreement (20[ ]-[ ])
A-2
SCHEDULE I
PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS
In addition to the representations, warranties and covenants contained in the Agreement,
Santander Consumer hereby represents, warrants, and covenants to the Purchaser as follows on the
Closing Date:
General
1. This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Receivables and the other Purchased Assets in favor of the Purchaser, which
security interest is prior to all other Liens, and is enforceable as such as against creditors of
and purchasers from Santander Consumer.
2. The Receivables constitute “chattel paper” (including “electronic chattel paper” or
“tangible chattel paper”), “accounts,” “instruments” or “general intangibles,” within the meaning
of the UCC.
3. Each Receivable is secured by a first priority validly perfected security interest in the
related Financed Vehicle in favor of the applicable Originator, as secured party, or all necessary
actions with respect to such Receivable have been taken or will be taken to perfect a first
priority security interest in the related Financed Vehicle in favor of the applicable Originator,
as secured party.
Creation
4. Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by
Santander Consumer to the Purchaser, Santander Consumer owned and had good and marketable title to
such Receivable free and clear of any Lien and immediately after the sale, transfer, assignment and
conveyance of such Receivable to the Purchaser, the Purchaser will have good and marketable title
to such Receivable free and clear of any Lien.
5. Santander Consumer has received all consents and approvals to the sale of the Receivables
hereunder to the Purchaser required by the terms of the Receivables that constitute instruments.
Perfection
6. Santander Consumer has caused or will have caused, within ten days after the effective date
of this Agreement, the filing of all appropriate financing statements in the proper filing office
in the appropriate jurisdictions under applicable law in order to perfect the sale of the
Receivables from Santander Consumer to the Purchaser, and the security interest in the Receivables
granted to the Purchaser hereunder; and the Servicer, in its capacity as custodian, has in its
possession the original copies of such instruments or tangible chattel paper that constitute or
evidence the Receivables, and all financing statements referred to in this paragraph contain a
statement that: “A purchase of or security interest in any collateral described in this financing
statement will violate the rights of the Secured Party/Purchaser.”
Purchase Agreement (20[ ]-[ ])
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7. With respect to Receivables that constitute an instrument or tangible chattel paper,
either:
| (i) | All original executed copies of each such instrument or tangible chattel paper have been delivered to the Indenture Trustee; or | ||
| (ii) | Such instruments or tangible chattel paper are in the possession of the Servicer and the Indenture Trustee has received a written acknowledgment from the Servicer that the Servicer (in its capacity as custodian) is holding such instruments or tangible chattel paper solely on behalf and for the benefit of the Indenture Trustee, as pledgee of the Issuer; or | ||
| (iii) | The Servicer received possession of such instruments or tangible chattel paper after the Indenture Trustee received a written acknowledgment from the Servicer that the Servicer is acting solely as agent of the Indenture Trustee, as pledgee of the Issuer. |
Priority
8. Santander Consumer has not authorized the filing of, and is not aware of, any financing
statements against Santander Consumer that include a description of collateral covering the
Receivables other than any financing statement (i) relating to the security interest granted to the
Purchaser hereunder or (ii) that has been terminated.
9. Santander Consumer is not aware of any material judgment, ERISA or tax lien filings against
Santander Consumer.
10. Neither Santander Consumer nor a custodian or vaulting agent thereof holding any
Receivable that is electronic chattel paper has communicated an “authoritative copy” (as such term
is used in Section 9-105 of the UCC) of any loan agreement that constitutes or evidences such
Receivable to any Person other than the Servicer.
11. None of the instruments, tangible chattel paper or electronic chattel paper that
constitute or evidence the Receivables has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Purchaser, the Issuer or the
Indenture Trustee.
Survival of Perfection Representations
12. Notwithstanding any other provision of this Agreement or any other Transaction Document,
the perfection representations, warranties and covenants contained in this Schedule I shall be
continuing, and remain in full force and effect until such time as all obligations under the
Transaction Documents and the Notes have been finally and fully paid and performed.
No Waiver
13. The parties to this Agreement shall provide the Rating Agencies with prompt written notice
of any material breach of the perfection representations, warranties and covenants
Purchase Agreement (20[ ]-[ ])
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contained in this Schedule I, and shall not, without satisfying the Rating Agency Condition,
waive a breach of any of such perfection representations, warranties or covenants.
Purchase Agreement (20[ ]-[ ])
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