Exhibit 10.1
----------------------------------------------------------------------------
AMENDED AND RESTATED
ORIGINATION TRUST AGREEMENT
BY AND AMONG
RAVEN FUNDING LLC,
AS SUCCESSOR SETTLOR
AND INITIAL BENEFICIARY,
PHH VEHICLE MANAGEMENT SERVICES LLC,
AS EXISTING SETTLOR AND INITIAL
BENEFICIARY AND SUCCESSOR UTI TRUSTEE,
AND
WILMINGTON TRUST COMPANY, AS DELAWARE TRUSTEE
CREATING A DELAWARE BUSINESS TRUST TO BE KNOWN
AS THE "X.X. XXXXXXXX TRUST"
DATED AS OF JUNE 30, 1999
----------------------------------------------------------------------------
TABLE OF CONTENTS
Page
PART I
CREATION OF TRUST . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 1.1. Creation of Trust . . . . . . . . . . . . . . . . . . 2
PART II
TRUST ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 2.1. Trust Assets . . . . . . . . . . . . . . . . . . . . 2
PART III
ACCEPTANCE BY TRUSTEES . . . . . . . . . . . . . . . . . . . . . . 3
Section 3.1. Acceptance by Trustees . . . . . . . . . . . . . . . 3
PART IV
BENEFICIAL INTERESTS IN TRUST . . . . . . . . . . . . . . . . . . . 4
Section 4.1. Undivided Trust Interest . . . . . . . . . . . . . . 4
Section 4.2. Special Units of Beneficial Interest . . . . . . . . 5
Section 4.3. [Intentionally Left Blank.] . . . . . . . . . . . . . 7
Section 4.4. Form of Certificate: Registration of Certificates . . 7
Section 4.5. Mutilated, Destroyed, Lost or Stolen Certificates . . 8
Section 4.6. Retitling of Trust Vehicles . . . . . . . . . . . . . 9
PART V
DUTIES AND POWERS OF TRUST AND TRUSTEES; TRUSTEE LIABILITY . . . . 9
Section 5.1. Duties and Powers of Trustees; Limitations on Trust
Activity . . . . . . . . . . . . . . . . . . . . . 9
Section 5.2. Duty of Care . . . . . . . . . . . . . . . . . . . . 11
Section 5.3. Certain Matters Affecting the Trustees . . . . . . . 12
Section 5.4. Trustees Not Liable for Certificates, Leases or Fleet
Receivables . . . . . . . . . . . . . . . . . . . . 14
Section 5.5. Indemnity of Trustees and Trust Agents . . . . . . . 15
Section 5.6. Trustee's Right Not to Act . . . . . . . . . . . . . 16
Section 5.7. Doing Business in Other Jurisdictions . . . . . . . . 16
Section 5.8. No Election to be a Corporation . . . . . . . . . . . 17
-i-
PART VI
APPOINTMENT, COMPENSATION AND REMOVAL OF TRUSTEES . . . . . . . . . 17
Section 6.1. Appointment of Trustees . . . . . . . . . . . . . . . 17
Section 6.2. Qualification of Trustee . . . . . . . . . . . . . . 17
Section 6.3. Resignation or Removal of Trustee . . . . . . . . . . 17
Section 6.4. Successor Trustee . . . . . . . . . . . . . . . . . . 18
Section 6.5. Merger or Consolidation of Trustees . . . . . . . . . 18
Section 6.6. Appointment of Co-Trustee, Separate Trustee, or
Nominee . . . . . . . . . . . . . . . . . . . . . . 19
Section 6.7. Representations and Warranties of Trustees . . . . . 20
Section 6.8. Trustee's Fees and Expenses . . . . . . . . . . . . . 22
Section 6.9. No Petition . . . . . . . . . . . . . . . . . . . . . 23
Section 6.10. Place of Business . . . . . . . . . . . . . . . . . . 23
PART VII
ACCOUNTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Section 7.1. Accounts; Expenses . . . . . . . . . . . . . . . . . 23
PART VIII
TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Section 8.1. Termination of the Trust . . . . . . . . . . . . . . 24
PART IX
MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . . . . . . 25
Section 9.1. Amendment . . . . . . . . . . . . . . . . . . . . . . 25
Section 9.2. GOVERNING LAW . . . . . . . . . . . . . . . . . . . . 25
Section 9.3. Notices . . . . . . . . . . . . . . . . . . . . . . . 25
Section 9.4. Severability of Provisions . . . . . . . . . . . . . 26
Section 9.5. Construction . . . . . . . . . . . . . . . . . . . . 26
Section 9.6. Separate Entity . . . . . . . . . . . . . . . . . . . 26
Section 9.7. No Market in Beneficial Interests . . . . . . . . . . 28
EXHIBITS:
EXHIBIT A Definitions
EXHIBIT B Form of Undivided Trust Interest Certificate
EXHIBIT C Form of Certificate of Trust
-ii-
AMENDED AND RESTATED ORIGINATION TRUST AGREEMENT
AMENDED AND RESTATED ORIGINATION TRUST AGREEMENT, dated as of JUNE
30, 1999 (as it may be modified, supplemented or amended from time to time in
accordance with its term, this "Agreement"), among Raven Funding LLC, a
Delaware limited liability company ("SPV"), as successor settlor and initial
beneficiary (the "Settlor" and the "Initial Beneficiary"), PHH VEHICLE
MANAGEMENT SERVICES LLC, a Delaware limited liability company ("VMS"), as the
existing settlor and initial beneficiary and the successor UTI Trustee, and
WILMINGTON TRUST COMPANY, a Delaware banking association (the "Delaware
Trustee"). Certain capitalized terms used herein are defined in Exhibit A.
R E C I T A L S
- - - - - - - -
WHEREAS, VMS and Allfirst Bank (formerly The First National Bank of
Maryland ("Allfirst")) entered into an Amended and Restated Trust Agreement
(the "Original Trust Agreement") dated as of December 17, 1998 pursuant to
which a Maryland common law trust known as the "X.X. Xxxxxxxx Trust" (the
"Original Trust") was governed and continued;
WHEREAS, the Original Trust previously issued a Series 1998-A
Special Beneficial Certificate, a Series 1998-B Special Beneficial
Certificate and a Series 1998-C Special Beneficial Certificate, each
certificate representing an exclusive undivided interest in specific assets
of the Original Trust (the "Existing Special Beneficial Certificates"), and a
certificate representing the assets of the Original Trust not allocated to
the Existing Special Beneficial Certificates (the "Exchangeable Beneficial
Certificate", together with the Existing Special Beneficial Certificate, the
"Existing Interests");
WHEREAS, pursuant to an Asset Sale Agreement, dated as of the date
hereof, between VMS and SPV, SPV purchased the Existing Interests from VMS;
WHEREAS, pursuant to the Agreement, dated as of the date hereof,
among VMS, SPV, Allfirst and Wilmington Trust Company, Wilmington Trust
Company succeeded Allfirst as trustee of the Original Trust; and
WHEREAS, each party hereto wishes to amend and restate the terms of
the Original Trust and extinguish the Existing Interests and provide for the
Original Trust to become a business trust pursuant to the Business Trust
Statute (as defined below) by its execution and delivery of this Agreement
and to make certain other modifications to the Original Trust;
NOW, THEREFORE, IN CONSIDERATION of the mutual agreements herein
contained, and of other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties agree as follows:
-1-
PART I
CREATION OF TRUST
Section 1.1. Creation of Trust. It is the intention of the
parties to amend and restate the terms of the Original Trust under Delaware
law and form a business trust pursuant to Chapter 38 of Title 12 of the
Delaware Code, 12 Del. C. Section 3801 et seq. (the "Business Trust
Statute"), and that this Agreement constitutes the governing instrument of
such business trust to be known as "X.X. XXXXXXXX TRUST" (the "Trust"). The
Original Trust was formed pursuant to the Original Trust Agreement.
Beneficial interests in all of the assets (the "Existing Trust Assets") of
the Original Trust are represented by the Existing Interests. The Settlor
hereby delivers to the UTI Trustee the Existing Interests in exchange for the
UTI Certificate and directs that the Existing Trust Assets allocated to such
Existing Interests be reallocated to the UTI. The Existing Interests are
hereby extinguished. The UTI Trustee shall continue to hold the Existing
Trust Assets with such other Trust Assets as the Trust may from time to time
acquire, for the benefit of the holders of the Certificates under the terms
provided herein. The Delaware Trustee is hereby authorized to file a
certificate of trust under the Business Trust Statute. The purpose of the
Trust is to act as the agent and nominee of the Certificateholders.
PART II
TRUST ASSETS
Section 2.1. Trust Assets. Pursuant to this Agreement and the
Servicing Agreement, the Trust shall hold and acquire from the Initial
Beneficiary from time to time the following assets as contemplated by this
Agreement and the Servicing Agreement: (a) cash; (b) lease contracts (such
lease contracts, the "Leases") of Vehicles, and all security therefore; (c)
Vehicles that are or were subject to a Lease (the "Leased Vehicles") and all
proceeds thereof, including the residual values of the Leased Vehicles to be
realized through the exercise by lessees of purchase options under the
Leases, the proceeds of sale of the Leased Vehicles to third parties and
payments received from any other Person, either directly or through a
Servicer, with respect to the Leased Vehicles; (d) Vehicles acquired at the
request of lessees under Leases ("Paid-In-Advance Vehicles" and, together
with the Leased Vehicles, "Trust Vehicles"), and all proceeds thereof,
including the proceeds of sale of the Paid-In-Advance Vehicles and payments
received from the related lessees or any other Persons, either directly or
through the Servicer, with respect to such Paid-In-Advance Vehicles; (e) each
certificate of title or other evidence of ownership of a Trust Vehicle issued
by the Registrar of Titles (as defined below) in the respective jurisdiction
-2-
in which such Trust Vehicle is registered (each a "Certificate of Title"),
which Certificate of Title shall reflect as the owner of such Trust Vehicle
"X.X. Xxxxxxxx Trust", the name of any Trustee or such other similar
designation as may be acceptable to any applicable department, agency or
official in each state responsible for accepting applications for, and
maintaining records regarding, Certificates of Title and liens thereon (each
a "Registrar of Titles"); (f) all of the lessor's rights (but not its
obligations) and all of the Trust's rights, in each case with respect to any
Lease or Trust Vehicle; (g) any insurance policy and rights thereunder or
proceeds therefrom, including, without limitation, any policy of
comprehensive, collision, public liability, physical damage or personal
liability insurance, maintained by the Initial Beneficiary or any Affiliate
of the Initial Beneficiary, the Servicer under the Servicing Agreement, any
Obligor under any Lease or any Affiliate of any such Obligor to the extent
that any such policy covers or applies to any Lease or Trust Vehicle
(collectively, "Insurance Policies"); (h) receivables (the "Fleet
Receivables") generated by VMS from Obligors under fleet maintenance
contracts, fleet management contracts, fuel card contracts and any other
service contracts the fees for which are or would be billed together with a
Lease if the Obligor is a party to a Lease (collectively, "Fleet Service
Contracts") and all proceeds thereof, which Fleet Receivables are acquired by
the Initial Beneficiary from time to time pursuant to the terms of the
Receivables Purchase Agreement dated as of June 30, 1999 between VMS and the
Initial Beneficiary (as amended, modified or supplemented from time to time,
the "Receivables Purchase Agreement"); (i) all of the Initial Beneficiary's
rights (but not its obligations) under the Receivables Purchase Agreement,
the Contribution Agreement and the Asset Sale Agreement; and (j) all proceeds
of any of the foregoing. The foregoing assets, together with the Trust's
rights under the Receivables Purchase Agreement and the Contribution
Agreement, and all proceeds of the same, are collectively referred to herein
as the "Trust Assets".
PART III
ACCEPTANCE BY TRUSTEES
Section 3.1. Acceptance by Trustees. (a) The UTI Trustee shall
have the rights, powers and duties with respect to the UTI set forth herein.
The UTI Trustee does hereby accept such appointment and agrees to act as a
trustee of the Trust for the benefit of the Initial Beneficiary and such
other Persons as may become holders of all or a part of the UTI, subject to
the terms and conditions of this Agreement.
(b) The Delaware Trustee shall have only such rights, powers and
duties as are specifically and expressly required by the Business Trust
-0-
Xxxxxxx and this Agreement. The Delaware Trustee hereby accepts such
appointment.
(c) Any SUBI Trustee shall have the rights, powers and duties set
forth herein with respect to the applicable SUBI. Any SUBI Trustee shall
accept such appointment and agree to act as a trustee of the Trust for the
benefit of the holders of all or part of the applicable SUBI, subject to the
terms and conditions of this Agreement, by execution of a counterpart to this
Agreement or other agreement acceptable to the UTI Trustee.
PART IV
BENEFICIAL INTERESTS IN TRUST
Section 4.1. Undivided Trust Interest. (a) The Initial
Beneficiary shall hold an exclusive, undivided beneficial interest (the
"Undivided Trust Interest" or the "UTI") in all assets of the Trust (the "UTI
Assets"), other than those identified Trust Assets that are from time to time
allocated by the Trust, upon the written direction of the Initial Beneficiary
and otherwise in accordance with Section 4.2 hereof, into one or more
separate portfolios of Trust Assets (together with any other Trust Asset
allocated to or earned by any such portfolio(s), and any proceeds thereof,
collectively, "SUBI Assets"). Except as otherwise provided for herein, all
collections and amounts received with respect to the Undivided Trust Interest
shall be distributed or retained by the UTI Trustee, as directed in writing
from time to time by the Initial Beneficiary. Any assignee or pledgee of an
Undivided Trust Interest or Undivided Trust Interest Certificate must, prior
to or contemporaneously with the grant of any such assignment, pledge or
security interest (i) give to the Trust a non-petition covenant substantially
similar to that set forth in Section 6.9, (ii) execute an agreement between
or among itself and each assignee or pledgee from time to time of any SUBI or
SUBI Certificate, to release all claims to the Trust Assets allocated to any
SUBI Portfolio and, in the event that such release is not given effect, to
fully subordinate all claims it may be deemed to have against all Trust
Assets allocated to any SUBI Portfolio, and (iii) provide to each Trustee an
Opinion of Counsel to the effect that, in the event of a bankruptcy or
insolvency of such assignee or pledgee, the Trust will not be substantively
consolidated with such assignee or pledgee. Nothing contained herein shall
be deemed to limit the rights of the holder of the UTI to enter into
participation agreements pursuant to which the holder grants one or more
participation interests in the UTI.
(b) The Undivided Trust Interest initially shall be represented by
a single trust certificate (together with any replacements thereof, the
"Undivided Trust Interest Certificate" or the "UTI Certificate"); provided,
however, that at the request of any holder thereof the Undivided Trust
-4-
Interest may be represented by two (2) or more such certificates that, in the
aggregate, represent the entire Undivided Trust Interest, such divided
certificates to be issued pursuant to a supplement to this Agreement (each, a
"UTI Supplement") which shall specify any terms or conditions relevant to the
issuance thereof, as shall be prescribed and established by such holder and
by the pledgee of any UTI Pledge. Except as set forth in any applicable UTI
Supplement, any Undivided Trust Interest Certificate shall be in
substantially the form of Exhibit B hereto, with such appropriate insertions,
omissions, substitutions and other variations as are required by this
Agreement and may have such letters, numbers or other marks of identification
and such legends and endorsements placed thereon as may, consistently
herewith, be directed in writing by the Initial Beneficiary. Any portion of
any Undivided Trust Interest Certificate may be set forth on the reverse or
subsequent pages thereof. Each Undivided Trust Interest Certificate shall be
printed, lithographed, typewritten, mimeographed, photocopied or otherwise
produced or may be produced in any other manner as may, consistently
herewith, be determined by the Initial Beneficiary.
(c) The UTI shall be a separate series of the Trust as provided in
Section 3806(b)(2) of the Business Trust Statute. Separate and distinct
records shall be maintained for the UTI Portfolio and the UTI Assets
associated with such UTI Portfolio shall be held and accounted for separately
from the other assets of the Trust, including any SUBI Assets. The debts,
liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to the UTl or the related UTI Assets shall be
enforceable against such UTI Assets only, and not against the assets of the
Trust generally or against any SUBI Assets. Except to the extent required by
law or specified in this Agreement, the UTI shall not be subject to claims,
debts, liabilities, expenses or obligations arising from or with respect to
any SUBI or any Trustee. No creditor or holder of a claim relating to assets
allocated to the UTI shall be entitled to maintain any action against or
recover any assets allocated to any SUBI in respect of such claim (whether
such assets were UTI Assets at any time since such claim arose). The holder
of the UTI may, in its sole discretion, appoint for the UTI a separate
trustee, (the "UTI Trustee") which shall perform such duties, have such
responsibilities and adhere to such standards of care as are specified in
Part V of this Agreement, but only with respect to the UTI. The Initial
Beneficiary hereby appoints VMS as the UTI Trustee.
Section 4.2. Special Units of Beneficial Interest. (a) The UTI
Trustee shall, from time to time, as directed in writing by the Initial
Beneficiary, identify and allocate or cause to be identified and allocated on
the books and records of the Trust one or more separate portfolios of SUBI
Assets to be accounted for independently within the Trust (each such
portfolio, a "SUBI Portfolio"). Upon their allocation as SUBI Assets, such
Trust Assets shall no longer be UTI Assets (unless and until specifically
reallocated to the UTI Assets from that SUBI Portfolio pursuant to the terms
-5-
hereof). Separate and distinct records shall be maintained for each SUBI
Portfolio and the SUBI Assets associated with each SUBI Portfolio shall be
held and accounted for separately from the other assets of the Trust,
including the UTI Assets, or any other SUBI Assets. The beneficial interest
in each such SUBI Portfolio shall constitute a separate "special unit of
beneficial interest" ("SUBI") in the Trust. The SUBI Trustee shall execute
and deliver, on behalf of the Trust, to or upon the written order of the
Initial Beneficiary one or more SUBI Certificates evidencing SUBIs, each SUBI
representing a specific divided interest in (but only in) such identified
SUBI Portfolio and the SUBI Assets allocated thereto, including with respect
to each Trust Vehicle included in any such SUBI Portfolio the actual net
proceeds received with respect to the disposition of such Trust Vehicle.
(b) Each SUBI shall be represented by one or more certificates
(each a "SUBI Certificate") to be issued by the Trust and shall be created by
the execution of a supplement to this Agreement (each a "SUBI Supplement"),
which SUBI Supplement shall specify the terms and provisions pursuant to
which SUBI Certificates shall be issued with respect to such SUBI; the form
of any SUBI Certificate(s) to be issued in connection therewith; the initial
SUBI Assets to be included in such SUBI Portfolio; the arrangements, if any,
whereby additional SUBI Assets may be added subsequently to the SUBI
Portfolio; the provisions under which the proceeds of the related SUBI Assets
shall be collected, invested and distributed; and other relevant terms and
provisions specific to such SUBI, all as shall be prescribed and established
by the Initial Beneficiary. Each SUBI Supplement shall provide for the
application of all net proceeds received with respect to the SUBI Assets,
including any mandatory distributions to holders of SUBI Certificates, but
shall require an express written waiver of any claim by any holder of any
SUBI Certificate (which waiver may be set forth in such SUBI Certificate) to
any proceeds or assets of the Trustees and to all of the assets of the Trust
other than the SUBI Assets included from time to time within the SUBI
Portfolio allocated to that SUBI and those proceeds or assets derived from or
earned by such SUBI Assets.
(c) Each SUBI shall be a separate series of the Trust as provided
in Section 3806(b)(2) of the Business Trust Statute. The debts, liabilities,
obligations and expenses incurred, contracted for or otherwise existing with
respect to each SUBI or the related SUBI Assets shall be enforceable against
such SUBI Assets only, and not against any other SUBI Assets or the UTI
Assets. Except to the extent required by law or specified in this Agreement
or in the related SUBI Supplement, SUBI Assets with respect to a particular
SUBI shall not be subject to claims, debts, liabilities, expenses or
obligations arising from or with respect to the Trust, any Trustee, the UTI
or any other SUBI in respect of such claim. No creditor or holder of a claim
relating to assets allocated to any SUBI shall be entitled to maintain any
action against or recover any assets allocated to the UTI or any other SUBI.
Notice of this limitation on interseries liabilities shall be set forth in
-6-
the certificate of trust of the Trust (whether originally or by amendment) as
filed or to be filed in the office of the Secretary of State of the State of
Delaware pursuant to the Business Trust Statute, and upon the giving of such
notice in the certificate of trust, the statutory provisions of Section 3804
of the Business Trust Statute relating to limitations on interseries
liabilities (and the statutory effect under Section 3804 of setting forth
such notice in the certificate of trust) shall become applicable to the Trust
and each SUBI and UTI. Any purchaser, assignee or pledgee of an interest in
a SUBI or SUBI Certificate must, prior to or contemporaneously with the grant
of any such assignment, pledge or security interest, (i) give to the Trust a
non-petition covenant substantially similar to that set forth in Section 6.9,
and (ii) execute an agreement for the benefit of each holder, assignee or
pledgee from time to time of the UTI or UTI Certificate and any other SUBI or
SUBI Certificate, to release all claims to the assets of the Trust allocated
to the UTI and each other SUBI Portfolio and in the event that such release
is not given effect, to fully subordinate all claims it may be deemed to have
against the assets of the Trust allocated to the UTI Portfolio and each other
SUBI Portfolio. In the event of a sale or assignment of a SUBI, such
purchaser or assignee shall be a beneficiary of the Trust in the manner and
to the extent set forth in the SUBI Certificate so acquired and in the
applicable SUBI Supplement.
(d) Each holder of a SUBI shall appoint for such SUBI a trustee (a
"SUBI Trustee") which shall perform such duties, have such responsibilities
and adhere to such standards of care as are specified in Part V of this
Agreement, but only with respect to the SUBI or SUBIs for which it was
appointed. The same Person may be appointed as SUBI Trustee for all or any
SUBIs; provided, however, that neither the Initial Beneficiary nor any
Affiliate of the Initial Beneficiary shall be a SUBI Trustee.
(e) No interest in any SUBI, SUBI Certificate or SUBI Portfolio
shall be transferred, assigned, sold or conveyed if, as the result of such
transfer, assignment, sale or conveyance, the Trust would become a publicly
traded partnership.
Section 4.3. [Intentionally Left Blank.]
Section 4.4. Form of Certificate: Registration of Certificates.
(a) The Certificates shall be executed on behalf of the Trust by manual or
facsimile signature of an authorized officer of the Delaware Trustee.
Certificates bearing a manual or facsimile signatures of individuals who
were, at the time when such a signature shall have been affixed, authorized
to sign on behalf of the Delaware Trustee shall, when duly authenticated
pursuant hereto, be validly issued and entitled to the benefits of this
Agreement, notwithstanding that such individuals or any of them shall cease
to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of authentication and
-7-
delivery of such Certificates. No Certificate shall entitle its holder to
any benefit under this Agreement, or shall be valid for any purpose, unless
there shall appear on such Certificate a certificate of authentication,
executed by the Delaware Trustee or an agent thereof, by annual signature;
such authentication shall constitute conclusive evidence that such
Certificate shall have been duly authenticated and delivered hereunder.
(b) The Delaware Trustee shall keep or cause to be kept at its
offices at 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000-0000 or such
other office as it shall designate, by written notice to the Initial
Beneficiary, a certificate register (the "Certificate Register"), in which,
subject to such reasonable regulations as it may prescribe, the Delaware
Trustee shall provide for the registration of Certificates and of transfers
and exchanges of Certificates as herein provided. Upon surrender for
registration of transfer of any Certificate, the Delaware Trustee shall
execute, authenticate and deliver in the name of the designated transferee or
transferees one or more new Certificates of the same type and proportionate
beneficial interest dated the date of authentication by the Delaware Trustee.
Each Certificate presented or rendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer in form
reasonably satisfactory to the Delaware Trustee, duly executed by the holder
of such Certificate or its attorney duly authorized in writing. Each
Certificate surrendered for registration of transfer and exchange shall be
canceled and subsequently disposed of by the Delaware Trustee in accordance
with its customary practice. No service charge shall be made for any
registration of transfer or exchange of any Certificate, but the Delaware
Trustee my require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates. Prior to the due presentation of a Certificate for
registration of transfer, the Delaware Trustee and each agent of the Delaware
Trustee may treat the Person in whose name any Certificate shall be
registered in the Certificate Register as the owner of such Certificate for
all purposes, and neither the Delaware Trustee nor any such agent shall be
bound by any notice to the contrary. The Delaware Trustee shall furnish or
cause to be furnished to each Servicer and the Initial Beneficiary, within
(3) three Business Days after receipt by the Delaware Trustee of request
therefor, a list of the names and addresses of the holders of the
Certificates.
Section 4.5. Mutilated, Destroyed, Lost or Stolen Certificates.
If any mutilated Certificate is surrendered to the Delaware Trustee, or the
Delaware Trustee receives evidence to its satisfaction of the mutilation,
destruction, loss or theft of any Certificate, and there is delivered to the
Delaware Trustee such security or indemnity as may be reasonably required by
it to save it harmless, then the Delaware Trustee shall execute and
authenticate, in lieu of such mutilated, destroyed, lost or stolen
Certificate, a Certificate of the same type and proportionate beneficial
-8-
interest bearing an identification number not contemporaneously outstanding,
which shall constitute for all purposes a substitute for the original
Certificate, which original Certificate shall be deemed canceled and shall be
so marked on the books and records of the Delaware Trustee.
Section 4.6. Retitling of Trust Vehicles. Except as otherwise
provided in the related Supplement, each holder of a UTI Certificate or a
SUBI Certificate may at any time, at its option, to be exercised by written
notice delivered to the applicable UTI or SUBI Trustee and the Servicer,
request that the Trust Vehicles allocated to such UTI Certificate or SUBI
Certificate, as the case may be, be retitled in the name of such holder (or a
Person designated by such holder), that a lien may be noted on the
Certificate of Title therefor in the name of such holder (or a Person
designated by such holder), or that possession of such Certificate of Title
and/or the other Trust Assets allocated to such UTI Certificate or SUBI
Certificate, as the case may be, be transferred to such holder (or a Person
designated by such holder). Except as otherwise provided in the related
Supplement, such holder shall indemnify the Trust, the Trustees and the
Servicer for, and hold the Trust, the Trustees and the Servicer harmless
against, any and all expenses, costs, liabilities, losses and claims incurred
by any of them as a result of or relating to such retitling or transfer, or
any action or inaction such holder shall take as the registered owner of such
Trust Vehicles or the owner of such Trust Assets, including, without
limitation, sales and transfer taxes and registration fees.
PART V
DUTIES AND POWERS OF TRUST AND TRUSTEES; TRUSTEE LIABILITY
Section 5.1. Duties and Powers of Trustees; Limitations on Trust
Activity. (a) Each Trustee undertakes to perform such duties, and only such
duties, as are specified in this Agreement, any supplement entered into
pursuant to this Agreement by such Trustee, or, except with respect to the
duties of any Trustee to the extent such duties relate to any SUBI Portfolio
and the assets thereof, as may be directed by the Initial Beneficiary in a
manner not contrary to the terms of this Agreement, from time to time,
including (without limitation) in connection with (i) financing transactions
of any sort undertaken by the Initial Beneficiary or a Special Purpose Entity
secured, directly or indirectly, by Trust Assets, by the Undivided Trust
Interest or by any SUBI or any interest therein (including without limitation
any financing undertaken in connection with the issuance and assignment of a
SUBI and related SUBI Certificates), (ii) any sale by the Initial Beneficiary
or a Special Purpose Entity of any interest in one or more SUBIs, (iii) any
other asset securitization, secured loan or similar transaction involving
Trust Assets or any beneficial interest therein or in the Trust
(collectively, the transactions in clauses (i), (ii) and (iii) are referred
-9-
to herein as "Securitizations"), (iv) sales by the Trust of Trust Assets to
the extent permitted by the terms of any existing Securitizations (so long as
the Certificate of Title of any Unit so sold is amended to reflect the
transfer of ownership thereof from the Trust, unless applicable law permits
the transfer of ownership of a motor vehicle without an amendment to the
vehicle's certificate of title) or (v) activities ancillary thereto.
(b) Except as provided in or otherwise expressly contemplated by
this Agreement or any Servicing Agreement, the Trust shall not (i) issue
beneficial interests in the Trust Assets or securities of the Trust other
than the UTI and UTI Certificates and one or more SUBIs and SUBI
Certificates; (ii) borrow money on behalf of the Trust; (iii) make loans or
extend credit on behalf of the Trust; (iv) invest in or underwrite
securities; (v) offer or issue securities in exchange for Trust Assets (other
than UTI Certificates and SUBI Certificates); (vi) repurchase or otherwise
reacquire any UTI Certificate or, except as permitted by or in connection
with any Securitization relating thereto, any SUBI Certificate; (vii) acquire
any assets, other than Trust Assets as contemplated in Section 2.1; (viii)
engage in any trade or business; or (ix) except for the acquisition of Trust
Assets and agreements relating to any Securitization and activities ancillary
thereto, enter into any agreements or contracts.
(c) The Trustees shall establish accounts and receive, maintain,
invest and disburse funds in accordance with Part VII hereof and any
Servicing Agreement or Supplement hereto or thereto.
(d) On the date hereof, the Trust is entering into a Servicing
Agreement with VMS and the Initial Beneficiary, and the Trust shall enter
from time to time into one or more other servicing agreements (each a
"Servicing Agreement") with VMS or with such other or additional Persons as
the holder of the UTI Certificate or any SUBI Certificate shall designate in
writing with respect to the applicable Portfolio represented by such
Certificate (each, in such capacity, a "Servicer"). VMS is hereby designated
as the initial Servicer. Each Servicing Agreement shall specify various
duties, powers, liabilities, obligations and compensation of the Servicer
with respect to the administration and servicing of those Trust Assets as to
which such Servicing Agreement applies, including (without limitation) Trust
Vehicles, Leases and Fleet Receivables. The Trust may enter from time to
time into one or more agreements (each, a "Nominee Agreement") with any
Person (other than the Initial Beneficiary or any Affiliate of the Initial
Beneficiary) that the Initial Beneficiary shall designate, such Person to
serve as a nominee for the Trust in those jurisdictions where the Trust
cannot be named as owner of Trust Vehicles on Certificates of Title. The
Trustees, and each of them, on behalf of the Trust, shall execute and deliver
such documents, certificates, applications, powers of attorney and
registrations as shall be requested and prepared by a Servicer pursuant to a
Servicing Agreement or by the Initial Beneficiary in connection with the
-10-
administration of the Trust or the servicing of the Trust Assets, including,
without limitation, a power of attorney to the Servicer and, to the extent
deemed appropriate by the Servicer, the lessees or a dealer; provided,
however, that no Trustee shall be obligated to enter into any such documents,
certificates, applications, powers of attorney or registrations that
adversely affect such Trustee's own rights, duties or immunities under this
Agreement or otherwise.
(e) The Trustees and the Trust shall have such powers as are
necessary and appropriate to the conduct of their duties as set forth in this
Agreement, the Servicing Agreements and the SUBI Supplements. In furtherance
of the foregoing, the Delaware Trustee is hereby authorized to execute and
deliver any documents, certificates or agreements to which the Trust is a
party pursuant to this Agreement or any SUBI Supplement hereto.
Section 5.2. Duty of Care. (a) No provision of this Agreement
shall be construed to relieve any Trustee from liability for its own grossly
negligent action (or, with respect to any handling or disbursement of funds,
its own negligent action), its own grossly negligent failure to act (or, with
respect to any handling or disbursement of funds, its own negligent failure
to act), its own bad faith, its own breach of its representations, warranties
or covenants given in its individual capacity or its own willful misfeasance
or similar acts or omissions of any Trust Agent; provided, however, that:
(i) a Trustee shall not be personally liable for any action taken,
suffered or omitted by it or any error of judgment, in each case made in
good faith by any officer of, or any other employee of the corporate
trust office of, such Trustee or any Trust Agent, including any vice-
president, trust officer or any other officer of such Trustee or such
Trust Agent customarily performing functions similar to those performed
by such officers or to whom any corporate trust matter is referred
because of such Person's knowledge of or familiarity with the particular
subject, unless it shall be proved that such Trustee or Trust Agent was
grossly negligent (or, with respect to any handling or disbursement of
funds, negligent) or acted with willful misfeasance in performing its
duties in accordance with the terms of this Agreement; and
(ii) a Trustee shall not be personally liable with respect to any
action taken, suffered or omitted to be taken in good faith in
accordance with the express direction of the Initial Beneficiary (to the
extent relating to the Undivided Trust Interest) or the holder or
pledgee of a SUBI Certificate in connection with a Securitization (to
the extent relating to a SUBI) relating to the exercise of any trust
power conferred upon such Trustee under this Agreement.
(b) Notwithstanding subsection (a) above, a Trustee shall not be
required to expend or risk its own funds or otherwise incur financial
-11-
liability in the performance of any of its duties under this Agreement, or in
the exercise of any of its rights or powers, if there shall be reasonable
grounds for believing that the repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it, and none of
the provisions contained in this Agreement shall in any event require a
Trustee to perform, or be responsible for the manner or omission of
performance of, any of the duties or obligations of a Servicer under any
Servicing Agreement.
(c) Except for actions expressly authorized by this Agreement, a
Trustee shall take no action as to which such Trustee has been notified in
writing by the holder, assignee or pledgee of a related SUBI Certificate or
UTI Certificate, or has actual knowledge, that such action would impair the
beneficial interests in the Trust, would impair the value of any Trust Asset
or would adversely affect the credit rating of any Securitization.
(d) All information obtained by a Trustee regarding the
administration of the Trust, whether upon the exercise of its rights under
this Agreement or otherwise, shall be maintained by such Trustee in
confidence and shall not be disclosed to any other Person other than to any
Trust Agent, the Initial Beneficiary, any Special Purpose Entity (if
applicable), any Servicer, any assignee of an interest in a UTI or UTI
Certificate or any pledgee of a UTI Pledge (or any beneficiary of such
pledge) and any assignee or pledgee of a SUBI Certificate, unless such
disclosure is permitted by this Agreement or any other agreement contemplated
hereby, is reasonably necessary or incidental to the Trustee's discharge of
its duties or exercise of its rights hereunder, is required by any applicable
law or regulation or pursuant to subpoena (and such Trustee has provided
notice thereof to the Initial Beneficiary), or such information is already
otherwise publicly available.
Section 5.3. Certain Matters Affecting the Trustees. Except as
otherwise provided in this Agreement:
(a) a Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, officer's certificate,
certificate of auditors or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, appraisal, bond or
other paper or document reasonably believed by it to be genuine and to
have been signed or presented by the proper party or parties. in
particular, but without limitation, whenever in this Agreement it is
provided that a Trustee shall receive or may rely on the instructions or
direction, of the Initial Beneficiary, a Special Purpose Entity, or the
holder or pledgee of a UTI Certificate or a SUBI Certificate in
connection with a Securitization, any written instruction or direction
purporting to bear the signature of any officer of the Initial
Beneficiary, a Special Purpose Entity, or the holder or pledgee of a UTI
-12-
Certificate or a SUBI Certificate in connection with a Securitization
reasonably believed by it to be genuine may be deemed by such Trustee to
have been signed or presented by the proper party;
(b) a Trustee may consult with counsel, and any written opinion of
counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it under this
Agreement in good faith and in accordance with such written opinion of
counsel;
(c) a Trustee shall be under no obligation to exercise any of the
discretionary rights or powers vested in it by this Agreement, or to
institute, conduct or defend any litigation under this Agreement or in
relation to this Agreement, at the request, order or direction of the
Initial Beneficiary, a Special Purpose Entity, the assignee or pledgee
of a UTI Certificate or a SUBI Certificate in connection with a
Securitization or any other beneficiary of the Trust pursuant to the
provisions of this Agreement, unless such requesting Person(s) shall
have offered to such Trustee reasonable security or indemnity against
the costs, expenses and liabilities that may be incurred therein or
thereby;
(d) a Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval,
bond or other paper or document, unless requested in writing to do so by
the Initial Beneficiary, a Special Purpose Entity or by the assignee or
pledgee of a UTI Certificate or a SUBI Certificate in connection with a
Securitization; provided, however, that if the payment within a
reasonable time to such Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in
the opinion of such Trustee, not reasonably assured to such Trustee by
the security afforded to it by the terms of this Agreement, such Trustee
may require reasonable indemnity against such cost, expense or liability
as a condition to so proceeding; the reasonable expense of every such
examination shall be paid by the Person(s) requesting such examination
or, if paid by such Trustee, shall be reimbursed as a Trust expense upon
demand; and
(e) a Trustee may execute any of the trusts or powers under this
Agreement or perform any duties under this Agreement either directly or
by or through agents or attorneys or one or more custodians and the
Trustee shall not be liable for the acts or omissions of any agent or
attorney selected by the Trustee in good faith with reasonable care. A
Trustee may delegate its duties and responsibilities hereunder to a sub-
trustee and may enter from time to time into one or more agency
agreements (each a "Trust Agency Agreement") with such Person or Persons
-13-
selected by the Trustee including without limitation any Affiliate of
such Trustee (each a "Trust Agent"), as are by experience and expertise
qualified to act in a trustee capacity and otherwise acceptable to the
Initial Beneficiary and any assignee or pledgee of a SUBI Certificate in
connection with a Securitization. A Trustee shall provide seven days'
prior written notice to the Initial Beneficiary of any such Trust Agency
Agreement. Notwithstanding the foregoing, a Trustee shall replace any
Trust Agent if (i) in the good faith judgment of the Initial
Beneficiary, the compensation or level of service of such Trust Agent
shall no longer be reasonably competitive with those of any alternative
agent reasonably proposed by the Initial Beneficiary, or (ii) if the
Trust Agent has materially breached its obligations under the Trust
Agency Agreement, the Initial Beneficiary or any assignee or pledgee of
a UTI Certificate or a SUBI Certificate in connection with a
Securitization has given written notice to such Trustee and the Trust
Agent of such breach, and the Trust Agent has not cured such breach in
all material respects within 15 Business Days thereafter (for purposes
of this Agreement, "Business Day" meaning any day that is not a
Saturday, Sunday or other day on which commercial banking institutions
in Maryland, Delaware or any other State in which the corporate trust
office of any Trustee is located are authorized or obligated by law or
executive order to be closed). Such Trust Agency Agreement shall
specify the duties, powers, liabilities, obligations and compensation of
such Trust Agent(s) to carry out on behalf of such Trustee any or all of
its obligations as Trustee of the Trust arising under this Agreement or
otherwise and shall contain a non-petition covenant substantially
identical to that set forth in Section 6.9; provided, however, that
nothing contained in any Trust Agency Agreement shall excuse, limit or
otherwise affect any power, duty, obligation, liability or compensation
otherwise applicable to such Trustee hereunder. The Trust shall pay
such amount to the Trust Agent as reasonable compensation for its
services and shall provide such reimbursement of expenses as are
separately agreed by such Trustee, the Initial Beneficiary and the Trust
Agent. Notwithstanding anything to the contrary herein, in no event
shall any Nominee Agreement be deemed to be a Trust Agency Agreement, or
any Servicer or any Affiliate thereof or any Person referred to in the
penultimate sentence of Section 5.1(d) be deemed to be a Trust Agent.
Section 5.4. Trustees Not Liable for Certificates, Leases or Fleet
Receivables. A Trustee shall have no obligation to perform any of the duties
of the Initial Beneficiary or any Servicer unless explicitly set forth in
this Agreement or any Servicing Agreement. A Trustee shall at no time have
any responsibility or liability for or with respect to (a) the validity or
sufficiency of this Agreement (except as set forth in Section 6.7) or the due
execution hereof by the Initial Beneficiary or the legality, validity and
enforceability of any security interest in any Trust Asset; (b) the
perfection or priority of such a security interest or the maintenance of any
-14-
such perfection and priority; (c) the efficacy of the Trust or its ability to
generate the payments to be distributed to the Initial Beneficiary or its
permitted assignee(s) under this Agreement, including, without limitation,
the existence, condition, location and ownership of any Trust Asset; (d) the
existence and enforceability of any Insurance Policy; (e) the existence and
contents of any Lease, Trust Vehicle or Fleet Receivable or any computer or
other record of any thereof; (f) the validity of the assignment of any Trust
Asset to the Trust or of any intervening assignment; (g) the completeness of
any Lease; (h) the performance or enforcement of any Lease or Fleet
Receivable; (i) the compliance by the Initial Beneficiary or any Servicer
with any covenant or the breach by the Initial Beneficiary or any Servicer of
any warranty or representation in any document and the accuracy of any such
warranty or representation prior to such Trustee's receipt of notice or other
discovery of any noncompliance therewith or any breach thereof; (j) any
investment of monies by any Servicer or any loss resulting therefrom (it
being understood that such Trustee shall remain responsible for any Trust
Assets that it may hold); (k) the acts or omissions of the Initial
Beneficiary, any Servicer, any other Person or any obligor under, or in
connection with the origination of, any Lease; (l) any action of any Servicer
taken in the name of such Trustee or the acts or omissions of any Servicer
under any Servicing Agreement or any other agreement contemplated hereby or
thereby; (m) any action by such Trustee taken at the instruction of the
Initial Beneficiary, the holder or any pledgee of any Certificate or any
Servicer; or (n) the preparation, execution or filing of any document or
report with the Securities and Exchange Commission or any state securities
commission or agency; provided, however, that the foregoing shall not relieve
any Trustee of its obligation to perform its duties under this Agreement.
Except with respect to a claim based on the failure of a Trustee to perform
its duties (i) under this Agreement to authenticate and deliver Certificates
at the request of the Initial Beneficiary, or (ii) as set forth in Sections
5.1(d) and 6.9, or based on a Trustee's or any Trust Agent's willful
misconduct, bad faith or gross negligence (or, with respect to the handling
or disbursement of funds, negligence), no recourse shall be had against the
Person or institution serving as a Trustee in its individual capacity for any
claim based on any provision of this Agreement or any Servicing Agreement, or
any Trust Asset or assignment thereof. A Trustee shall not have any personal
obligation, liability or duty whatsoever to the Initial Beneficiary or any
permitted assignee(s) thereof or any other Person with respect to any such
claim, and any such claim shall be asserted solely against the Trust Assets
or any indemnitor who shall furnish indemnity as provided in this Agreement.
A Trustee shall not be accountable for the use or application by the Initial
Beneficiary or a Special Purpose Entity of any of the SUBI Certificates or of
the proceeds of such Certificates, or for the use or application of any funds
properly paid to any Servicer pursuant to any Servicing Agreement.
Section 5.5. Indemnity of Trustees and Trust Agents. Each Trustee
and any Trust Agent shall be indemnified and held harmless (but only, to the
-15-
extent, if any, provided in the applicable SUBI Supplement, out of and to the
extent of the Trust Assets allocated to the Portfolio for which such Trustee
acts as trustee) with respect to any loss, liability or expense, including
reasonable attorneys, and other professionals' fees and expenses
(collectively "Claims"), arising out of or incurred in connection with (a)
any of the Trust Assets (including, without limitation, any Claims relating
to Leases, Trust Vehicles, Fleet Receivables, misrepresentation, deceptive
and unfair trade practices, consumer fraud, consumer leasing act violations,
and any other claims arising in connection with any Lease, personal injury or
property damage claims arising with respect to any Unit or any claim with
respect to any tax arising with respect to any Trust Asset) or (b) such
Trustee's or Trust Agent's acceptance or performance of the trusts and duties
contained in this Agreement or any Trust Agency Agreement, with any
allocation of such indemnification among the Trust Assets to be made as
provided for in Section 7.1(b) hereof; provided, however, that neither a
Trustee nor any Trust Agent shall be indemnified or held harmless out of the
Trust Assets as to any Claim (i) for which the Initial Beneficiary, a
Servicer or any of their respective Affiliates shall be liable pursuant to
this Agreement or a Servicing Agreement, (ii) incurred by reason of such
Trustee's or such Trust Agent's willful misfeasance, bad faith or gross
negligence (or, with respect to the handling or disbursement of funds,
negligence), or (iii) incurred by reason of such Trustee Bank's breach of its
respective representations and warranties pursuant to any Servicing Agreement
or of Section 6.2 of this Agreement. The UTI Trustee shall in no event have
any recourse to any SUBI Assets, including such SUBI Assets which were UTI
Assets at the time a Claim against the UTI Trustee arose, and no SUBI Trustee
shall have any recourse to any UTI Assets, including such UTI Assets which
were SUBI Assets at the time a Claim against such SUBI Trustee arose.
Section 5.6. Trustee's Right Not to Act. Notwithstanding anything
to the contrary contained herein, a Trustee shall have the right to decline
to act in any particular manner otherwise provided for herein if such
Trustee, being advised in writing by counsel, determines that such action may
not lawfully be taken, or if such Trustee in good faith shall determine that
such action would be illegal or subject such Trustee Bank to personal
liability or be unduly prejudicial to the rights of other beneficiaries of
the Trust.
Section 5.7. Doing Business in Other Jurisdictions.
Notwithstanding anything contained herein to the contrary, neither a Trustee
Bank nor the related Trustee shall be required to take any action in any
jurisdiction other than in the State of its incorporation or any State in
which it is qualified to do business (each, a "State of Qualification") if
the taking of such action may (i) require the consent, approval,
authorization or order of or the giving of notice to, or the registration
with or the taking of any other action in respect of, any state or other
governmental authority or agency of any jurisdiction other than a State of
-16-
Qualification; (ii) result in any fee, tax or other governmental charge under
the laws of any jurisdiction or any political subdivisions thereof in
existence on the date hereof other than a State of Qualification becoming
payable by the Trust Bank; or (iii) subject the Trustee Bank to personal
jurisdiction in any jurisdiction other than a State of Qualification for
causes of action arising from acts unrelated to the consummation of the
transactions by such Trustee Bank or the related Trustee, as the case may be,
contemplated hereby. In the event that a Trustee does not take any action
because such action may result in the consequences described in the preceding
sentence, such Trustee will appoint, at the expense of the Trust, a separate
trustee or co-trustee pursuant to Section 6.6 to proceed with such action.
Section 5.8. No Election to be a Corporation. Neither the Trust
nor any Trustee shall make or authorize any Person to make an election to
have the Trust classified or taxed as a corporation for federal income tax
purposes or any applicable state or local income or franchise tax purposes.
PART VI
APPOINTMENT, COMPENSATION AND REMOVAL OF TRUSTEES
Section 6.1. Appointment of Trustees. VMS is hereby designated as
UTI Trustee. Wilmington Trust Company is hereby designated as Delaware
Trustee.
Section 6.2. Qualification of Trustee. Except as otherwise
provided in this Agreement, each Trustee under this Agreement (with the
exception of VMS as the initial UTI Trustee) shall at all times be (a) a bank
or trust company organized under the laws of the United States or one of the
fifty states of the United States or the District of Columbia, with capital
and surplus of at least $100,000,000, and (b) in the case of the Delaware
Trustee only, have a principal place of business, or shall have appointed an
agent with a principal place of business, in the State of Delaware. Any
Trustee need not meet the qualifications set forth in clause (a) above if
such Trustee has appointed a Trust Agent that meets such qualifications.
Section 6.3. Resignation or Removal of Trustee. (a) A Trustee
may at any time resign by giving thirty days' prior written notice to the
Initial Beneficiary and each Certificateholder. Upon receiving the notice of
resignation the holder of the UTI (in the case of the UTI Trustee or the
Delaware Trustee) or the holder of the applicable SUBI (in the case of a SUBI
Trustee) shall promptly appoint a successor Trustee who meets the eligibility
requirements set forth in Section 6.2 by written instrument.
(b) If at any time a Trustee shall cease to be qualified in
accordance with Section 6.2, or if any representation or warranty made by a
-17-
Trustee Bank pursuant to Section 6.7 shall prove to have been untrue in any
material respect when made, but such Trustee shall fail to resign after
written request therefor by the holder of the applicable UTI Certificate or
SUBI Certificate or the assignee or pledgee of such UTI Certificate or SUBI
Certificate in connection with a Securitization, or if at any time a Trustee
shall be legally unable to act, or shall be adjudged bankrupt or insolvent,
or a receiver of a Trustee or of its property shall be appointed, or any
public officer shall take charge or control of a Trustee or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation,
then such Trustee may be removed upon written notice by the holder of the
applicable UTI Certificate or SUBI Certificate or the assignee or pledgee of
such UTI Certificate or SUBI Certificate in connection with a Securitization.
If a Trustee resigns or is removed under the authority of the immediately
preceding sentence, the holder of the applicable UTI Certificate or SUBI
Certificate shall promptly appoint a successor Trustee by written instrument,
in duplicate, one copy of which instrument shall be delivered to the Trustee
so removed and one copy to the successor Trustee, together with payment of
all amounts owed to the outgoing Trustee.
(c) Any resignation or removal of a Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this part shall not
become effective until acceptance of appointment by the successor Trustee.
Section 6.4. Successor Trustee. Any successor Trustee appointed
as provided in Section 6.3 shall execute, acknowledge and deliver to the
Servicer, the Initial Beneficiary, the holder and each assignee or pledgee of
the applicable UTI Certificate or SUBI Certificate and to its predecessor
Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor under this Agreement, with like effect as if
originally named as the applicable Trustee. The predecessor Trustee shall
deliver to the successor Trustee all documents and statements held by it
under this Agreement, and the Initial Beneficiary, the holder of the
applicable UTI Certificate or SUBI Certificate and the predecessor Trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in the
successor Trustee all such rights, powers, duties and obligations. No
successor Trustee shall accept appointment as provided in this Section unless
at the time of such acceptance such successor Trustee shall be eligible under
the provisions of Section 6.2.
Section 6.5. Merger or Consolidation of Trustees. (a) Any entity
(i) into which a Trustee may be merged or consolidated, (ii) which may result
from any merger, conversion, or consolidation to which a Trustee shall be a
party, or (iii) which may succeed to all or substantially all of the
-18-
corporate trust business of a Trustee, which entity, if requested by the
Initial Beneficiary or the holder, assignee or pledgee of the applicable
SUBI, executes an agreement of assumption to perform every obligation of such
Trustee under this Agreement, shall be the successor of such Trustee
hereunder, provided such entity shall be eligible pursuant to Section 6.2,
without the execution or filing of any instrument or any further act on the
part of any of the parties hereto (other than the written consent of the
Initial Beneficiary or the holder, assignee or pledgee of the applicable SUBI
Certificate).
(b) Upon the happening of any of the events described in Section
6.3, Section 6.4 or paragraph (a) of this Section 6.5, the successor trustee
shall, to the extent required by Delaware law, cause an amendment to the
certificate of trust to be filed with the Secretary of State, in accordance
with the provisions of Section 3810 of the Business Trust Statute, indicating
the change with respect to such Trustee's identity.
Section 6.6. Appointment of Co-Trustee, Separate Trustee, or
Nominee. (a) Notwithstanding any other provisions of this Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction
in which any Trust Asset may at the time be located, the Initial Beneficiary
or the holder of or the Servicer with respect to the applicable SUBI and a
Trustee, acting jointly, shall have the power to execute and deliver all
instruments to appoint one or more Persons approved by such Persons to act as
co-trustee, jointly with such Trustee, or as a separate trustee or nominee,
of all or any part of the Trust, and to vest in such Person, in such capacity
and for the benefit of the Initial Beneficiary and its permitted assignee(s),
such title to the Trust Assets, or any part thereof, and, subject to the
other provisions of this Section, such powers, duties, obligations, rights
and trusts as such Persons may consider necessary or desirable. No co-
trustee, separate trustee, or nominee under this Agreement shall be required
to meet the terms of eligibility as a successor trustee pursuant to Section
6.2, except that no co-trustee, separate trustee or nominee with respect to
any SUBI or any SUBI Assets under this Agreement may be the Initial
Beneficiary or any Affiliate thereof.
(b) Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions
and conditions:
(i) all rights, powers, duties and obligations conferred or
imposed upon the applicable Trustee shall be conferred upon and
exercised or performed by such Trustee and such separate trustee and co-
trustee jointly (it being understood that such separate trustee or co-
trustee is not authorized to act separately without such Trustee joining
in such act), except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed
-19-
(whether as a Trustee under this Agreement or as successor to any
Servicer under this Agreement or any Servicing Agreement), such Trustee
shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the
holding of title to the Trust or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate
trustee or co-trustee, but solely at the direction of such Trustee;
(ii) no Trustee under this Agreement shall be personally liable by
reason of any act or omission of any other Trustee under this Agreement;
and
(iii) the Initial Beneficiary (or the holder of a SUBI Certificate
for a separate trustee or co-trustee acting with respect to the related
SUBI Portfolio) and a Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee.
(c) Any notice, request or other writing given to a Trustee shall
be deemed to have been given to each of the then separate trustees and co-
trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement
and the conditions of this Section. Each separate trustee and co-trustee,
upon its acceptance of the trusts conferred, shall be vested with the estates
or property specified in its instrument of appointment, either jointly with a
Trustee or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or
affording protection to, such Trustee. Each such instrument shall be filed
with such Trustee and a copy thereof given to the Servicer.
Any separate trustee or co-trustee may at any time appoint the
applicable Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts relating
to this Agreement and the Trust Assets shall vest in and be exercised by the
applicable Trustee, to the extent permitted by law, without the appointment
of a new or successor trustee. Notwithstanding anything to the contrary in
this Agreement, the appointment of any separate trustee or co-trustee shall
not relieve the applicable Trustee of its obligations and duties under this
Agreement.
Section 6.7. Representations and Warranties of Trustees.
(a) Each Trustee Bank hereby makes the following representations and
warranties as of the date hereof, and the Trustee Banks shall be deemed to
remake the following representations and warranties upon each transfer by the
-20-
Initial Beneficiary of a SUBI in connection with a Securitization, on which
the Initial Beneficiary, each of its permitted assignees and pledgees, and
each pledgee or holder of a Certificate (and beneficial owner of any portion
thereof in connection with a Securitization) may rely:
(i) Organization and Good Standing. The Trustee Bank is a banking
corporation duly organized, validly existing and in good standing under
the law of its jurisdiction of organization;
(ii) Power and Authority. The Trustee Bank has full power,
authority and right to execute, deliver and perform its obligations
under this Agreement, and has taken all necessary action to authorize
the execution, delivery and performance by it of this Agreement;
(iii) Due Execution. This Agreement has been duly executed and
delivered by the Trustee Bank, and is a legal, valid and binding
instrument enforceable against the Trustee Bank in accordance with its
terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and by general principles of
equity, regardless of whether such enforceability is considered in a
proceeding in equity or at law;
(iv) No Conflict. Neither the execution and delivery of this
Agreement nor the consummation of the transactions herein contemplated,
nor compliance with the provisions hereof, will conflict with or result
in a breach of, or constitute a default (with notice or passage of time
or both) under any provision of any federal or Delaware state law,
governmental rule or regulation, or any judgment, decree or order
binding on the Trustee Bank or the articles of association or bylaws of
the Trustee Bank or any provision of any mortgage, indenture, contract,
agreement or other instrument to which the Trustee Bank is a party or by
which it is bound; and
(v) Location of Records. The office where the Trustee keeps its
records concerning the transactions contemplated hereby is located at:
(i) in the case of the SUBI Trustee, 0000 Xxxxx Xxxxxx Xxxxxx,
Xxxxxxxxxx, Xxxxxxxx 00000-0000, and (ii) in the case of the Delaware
Trustee, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000-0000.
(b) VMS, as the initial UTI Trustee, hereby makes the following
representations and warranties as of the date hereof, and VMS, so long as VMS
is the UTI Trustee, shall be deemed to remake the following representations
and warranties upon each transfer by the Initial Beneficiary of a SUBI in
connection with a Securitization, on which the Initial Beneficiary, each of
its permitted assignees and pledgees, and each pledgee or holder of a
-21-
Certificate (and beneficial owner of any portion thereof in connection with a
Securitization) may rely:
(i) Organization and Good Standing. VMS is a Delaware limited
liability company duly organized, validly existing and in good standing
under the law of its jurisdiction of organization;
(ii) Power and Authority. VMS has full power, authority and
right to execute, deliver and perform its obligations under this
Agreement, and has taken all necessary action to authorize the
execution, delivery and performance by it of this Agreement;
(iii) Due Execution. This Agreement has been duly executed and
delivered by VMS, and is a legal, valid and binding instrument
enforceable against VMS in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization
or other similar laws affecting the enforcement of creditors' rights
generally and by general principles of equity, regardless of whether
such enforceability is considered in a proceeding in equity or at law;
(iv) No Conflict. Neither the execution and delivery of this
Agreement nor the consummation of the transactions herein contemplated,
nor compliance with the provisions hereof, will conflict with or result
in a breach of, or constitute a default (with notice or passage of time
or both) under any provision of any federal or Delaware state law,
governmental rule or regulation, or any judgment, decree or order
binding on VMS or the limited liability company agreement of VMS or any
provision of any mortgage, indenture, contract, agreement or other
instrument to which VMS is a party or by which it is bound; and
(v) Location of Records. The office where VMS, as the UTI
Trustee, keeps its records concerning the transactions contemplated
hereby is located at 000 Xxx Xxxxxxx Xxxx, Xxxxxx Xxxx, Xxx Xxxx 00000.
Section 6.8. Trustee's Fees and Expenses. Each Trustee shall be
paid out of Trust Assets allocated to the Portfolio for which such Trustee
acts as trustee, to the extent, if any, provided in the applicable SUBI
Supplement or by the Servicer, to the extent provided in the Servicing
Agreement and any supplement thereto, reasonable compensation (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) and reimbursement of all reasonable expenses
(including without limitation reasonable attorneys' fees), as may be agreed
upon in writing between the Initial Beneficiary and such Trustee, for all
services rendered by it in the execution of the Trust and in the exercise and
performance of any of the powers and duties under this Agreement.
-22-
Section 6.9. No Petition. (a) Each of the Trustee Banks, each
Trustee and the Initial Beneficiary covenants and agrees that prior to the
date which is one year and one day after the date upon which all obligations
under each Securitization have been paid in full, it will not institute
against, or join any other Person in instituting against, the Trust, the
Initial Beneficiary, any other Special Purpose Entity, or any general partner
of any Special Purpose Entity that is a partnership, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law. This
Section shall survive the termination of this Agreement or the resignation or
removal of such Trustee under this Agreement.
(b) No bankruptcy, reorganization arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state
bankruptcy, insolvency or similar law shall be instituted by the Trust
without the unanimous consent of all Trustees and Certificateholders
hereunder. A SUBI Trustee shall not so consent unless directed to do so by
the holder of the applicable SUBI and each assignee or pledgee of such SUBI
Certificate, and the Delaware Trustee shall not so consent unless directed to
do so by all of the Certificateholders.
Section 6.10. Place of Business. At all times, either the
Delaware Trustee or a co-trustee hereunder shall be a resident of, or have a
principal place of business in, the State of Delaware.
PART VII
ACCOUNTS
Section 7.1. Accounts; Expenses. (a) The UTI Trustee will
establish and maintain with respect to the Undivided Trust Interest such bank
accounts as may be directed in writing by the Initial Beneficiary and each
SUBI Trustee will establish and maintain with respect to each SUBI such bank
accounts as may be set forth in the applicable SUBI Supplement (collectively,
the "Trustee Accounts," and each such Trustee Account with respect to any
particular SUBI, a "SUBI Account"). A Trustee may authorize any Servicer to
make deposits into and to make disbursements from its Trustee Accounts in
accordance with the terms and provisions of this Agreement and any Servicing
Agreement.
(b) All Trust expenses shall be paid by the Servicer in accordance
with Section 2.5 of the Servicing Agreement (other than losses with respect
to the Trust Assets). In the event of any failure of the Servicer to pay any
expense of the Trust in accordance with Section 2.5 of the Servicing
Agreement, Trust expenses relating to any particular UTI Portfolio or SUBI
Portfolio or any UTI Trustee or SUBI Trustee shall be paid from the assets of
-23-
that UTI Portfolio or SUBI Portfolio to the extent, if any, provided in the
applicable Supplement. To the extent any such expense or liability shall be
incurred or suffered with respect to the Trust Assets generally, all
beneficiaries of the Trust shall bear the burden of such Trust expense or
liability ratably in accordance with their respective share of such expense
or liability borne or allocable to their respective UTI Portfolio or SUBI
Portfolio, or, if such allocation is not practicable, on a pro rata basis in
the ratio of the aggregate value of Trust Assets held in each respective SUBI
Portfolio and the UTI Portfolio, as each is recorded on the books of the
Trust, to the total value of all Trust Assets, or on such other equitable
basis as shall be appropriate under the circumstances. Any pro rata
allocation of an expense or liability among one or more of the SUBI
Portfolios or the UTI Portfolio shall be made in good faith and so as not to
disproportionately affect any SUBI Portfolio or the UTI Portfolio.
(c) All or a portion of the funds deposited into each Trustee
Account shall be separately invested by the applicable Trustee from time to
time at the written direction of the Initial Beneficiary or a Special Purpose
Entity (as appropriate) or the applicable Servicer, as its designee, all as
specified in the applicable Servicing Agreement.
PART VIII
TERMINATION
Section 8.1. Termination of the Trust. (a) The Trust shall
dissolve upon the unanimous written agreement of all of the holders of
Certificates. Upon the dissolution of the Trust, its affairs shall be wound
up and its property liquidated. Thereafter, after paying its liabilities in
accordance with Section 3808 of the Business Trust Statute, the Delaware
Trustee shall cause the Trust's certificate of trust to be canceled by filing
a certificate of cancellation with the Secretary of State in accordance with
the provisions of Section 3810 of the Business Trust Statute and the Trust
shall terminate.
(b) Any SUBI shall be dissolved and its affairs shall be wound up
at the time or upon the happening of events specified in the applicable SUBI
Supplement. Any SUBI established in accordance with this Agreement may be
dissolved and its affairs wound up without causing the dissolution of the
Trust or any other SUBI thereof. The dissolution, winding up, liquidation or
termination of the Trust or any SUBI thereof shall not affect any limitation
of liability with respect to a SUBI established in accordance with this
Agreement, the Certificate of Trust or Section 3804(a) of the Business Trust
Statute. The death, incapacity, dissolution, termination or bankruptcy of a
beneficial owner of any SUBI shall not result in the termination or
dissolution of such SUBI and such SUBI may not be terminated or revoked by a
-24-
beneficial owner of such SUBI or other person except in accordance with the
terms of this Agreement or, in the case of any SUBI, the applicable SUBI
Supplement.
(c) The Servicer and any other persons under this Agreement or a
SUBI Supplement which are responsible for winding up the affairs of any SUBI
may in the name of the Trust and for and on behalf of the Trust and such
SUBI, take all actions with respect to the SUBI as are permitted under
Section 3808 of the Business Trust Statute and shall provide for the claims
and obligations of the SUBI and distribute the assets of the SUBI as provided
under Section 3808 of the Business Trust Statute. Any Person, including any
Trustee, who under this Agreement or any SUBI Supplement is responsible for
winding up such SUBI' affairs who has complied with Section 3808(e) of the
Business Trust Statute shall not be personally liable to the claimants of the
dissolved SUBI by reason of such Person's actions in winding up the SUBI.
PART IX
MISCELLANEOUS PROVISIONS
Section 9.1. Amendment. This Agreement may be amended by written
agreement between the Initial Beneficiary and the UTI Trustee (entered into
by the UTI Trustee at the written direction of the Initial Beneficiary);
provided, however, that any such amendment shall also require the approvals
of the Certificateholders and any pledgee or assignee of a SUBI Certificate
to the extent required pursuant to the terms of the related SUBI Supplement;
provided further, however, that amendments shall not require any approval of
Certificateholders, or pledgees or assignees of any SUBI Certificate, if such
Certificateholders, pledgees or assignees would not be adversely affected by
such amendment. Prior to the execution of any amendment to this Agreement,
any Servicing Agreement or any other agreement contemplated hereby or
thereby, each Trustee and each Certificateholder shall receive and shall be
entitled to 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, if any, to such execution and delivery have been
satisfied. A Trustee may, but shall not be obligated to, enter into any such
amendment which adversely affects such Trustee's own rights, duties or
immunities under this Agreement or otherwise.
Section 9.2. GOVERNING LAW. THIS AGREEMENT SHALL BE CREATED UNDER
AND GOVERNED BY AND CONSTRUED UNDER THE INTERNAL LAWS OF THE STATE OF
DELAWARE, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS
OF LAWS.
Section 9.3. Notices. All demands, notices and communications
under this Agreement shall be in writing and shall be delivered or mailed by
-25-
registered or certified first class United States mail, postage prepaid,
return receipt requested; hand delivery; prepaid courier service; or
telecopier, and addressed in each case as follows: (a) if to the Initial
Beneficiary, c/o Global Securitization Services, LLC, 00 Xxxx 00xx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: Vice President (at Telecopier No. (212)
302-5151); (b) if to the UTI Trustee, 000 Xxx Xxxxxxx Xxxx, Xxxxxx Xxxx, Xxx
Xxxx 00000, Attention: General Counsel (at Telecopier No. 516-222-3751) and
(c) if to the Delaware Trustee Bank or the Delaware Trustee, 0000 Xxxxx
Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000-0000, Attention: Corporate Trust
Administration (at Telecopier No. 302-651-8882) or at such other address as
shall be designated by VMS, the Initial Beneficiary, the UTI Trustee, the
Delaware Trustee Bank or the Delaware Trustee in a written notice to the
other parties hereto.
Section 9.4. Severability of Provisions. If one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement or of any
Certificates or the rights of the holders thereof.
Section 9.5. Construction. For all purposes of this Agreement,
unless the context otherwise requires or as otherwise expressly provided, (a)
all defined terms shall include both the singular and the plural form
thereof; (b) reference to any gender shall include all other genders; (c) all
references to words such as "herein", "hereof" and the like shall refer to
this Agreement as a whole and not to any particular Part or Section within
this Agreement; (d) the term "include" means "include without limitation";
and (e) the term "or" is intended to include the term "and/or".
Section 9.6. Separate Entity. The Trustees and the Initial
Beneficiary shall in all transactions with third parties hold the Trust out
as a separate entity from the Initial Beneficiary and any Affiliate of the
Initial Beneficiary (the "Initial Beneficiary Group") and the Initial
Beneficiary Group shall do all things necessary to make the Trust continue to
be readily distinguishable from the Initial Beneficiary and other members of
the Initial Beneficiary Group. In furtherance and not in limitation of the
foregoing, the Trust shall:
(i) practice and adhere to organizational formalities, such as
maintaining appropriate books and records;
(ii) observe all organizational formalities in connection with all
dealings with the Initial Beneficiary Group;
-26-
(iii) observe all procedures required by this Agreement and the laws
of the State of Delaware;
(iv) act solely in its name;
(v) ensure the receipt of proper authorization, when necessary,
from the holders of the Certificates for its actions;
(vi) not (i) have or incur any indebtedness to the Initial
Beneficiary Group; (ii) guarantee or otherwise become liable for any
obligations of the Initial Beneficiary Group; (iii) have obligations
guaranteed by the Initial Beneficiary Group; (iv) hold itself out as
responsible for debts of the Initial Beneficiary Group or for decisions
or actions with respect to the affairs of the Initial Beneficiary Group;
(v) operate or purport to operate as an integrated, single economic unit
with respect to the Initial Beneficiary Group or any other unaffiliated
entity; (vi) seek to obtain credit or incur any obligation to any third
party based upon the assets of the Initial Beneficiary Group or any
other unaffiliated entity; (vii) induce any such third party to
reasonably rely on the creditworthiness of the Initial Beneficiary Group
or any other unaffiliated entity; and (viii) be directly or indirectly
named as a direct or contingent beneficiary or loss payee on any
insurance policy of the Initial Beneficiary Group other than as required
by the Transaction Documents;
(vii) other than as provided in the Transaction Documents, maintain
its deposit and other bank accounts and all of its assets separate from
those of any other Person;
(viii) maintain its financial records separate and apart from those
of any other Person;
(ix) compensate all its agents for services provided to it by such
Persons out of its own funds or reimbursing any of its Affiliates in
respect of amounts paid by such Affiliates for such services;
(x) account for and manage all of its liabilities separately from
those of the Initial Beneficiary Group;
(xi) refrain from filing or otherwise initiating or supporting the
filing of a motion in any bankruptcy or other insolvency proceeding
involving the Initial Beneficiary Group to substantively consolidate the
Trust or any Affiliate of the Trust with the Initial Beneficiary; and
(xii) remain solvent.
-27-
Section 9.7. No Market in Beneficial Interests. Each of the
Initial Beneficiary and each Trustee covenants and agrees that it will not
transfer, assign, participate, pledge or otherwise dispose of its interest in
the Trust, or cause its interest to be marketed, on or through an
established securities market. No transfer of a beneficial interest in the
Trust may be made unless the transferee makes representations substantially
similar to those set forth in Exhibit D hereto.
[SIGNATURES ON NEXT PAGE]
-28-
IN WITNESS WHEREOF, each of the undersigned have caused this
Amended and Restated Origination Trust Agreement to be duly executed by their
respective officers as of the day and year first above written.
RAVEN FUNDING LLC,
as Settlor and Initial Beneficiary
By: /s/ Xxxxx X. Xxxxxxx
_______________________________________
Name: Xxxxx X. Xxxxxxx
Title: Manager
PHH VEHICLE MANAGEMENT SERVICES LLC,
as existing settlor and UTI Trustee
By: /s/ Xxxxxx Xxxxxxx
_________________________________________
Name: Xxxxxx Xxxxxxx
Title: Senior Vice President
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as
Delaware Trustee
By: /s/ Xxxxx X. Xxxxxx
______________________________________
Name: Xxxxx X. Xxxxxx
Title: Vice President
-29-
EXHIBIT A
---------
X.X. XXXXXXXX TRUST
DEFINITIONS
"Affiliate" of any specified Person means any other Person that
directly or indirectly controls, is controlled by or is under common control
with such specified Person.
"Agreement" shall have the meaning set forth in the Preamble.
"Asset Sale Agreement" shall mean the Asset Sale Agreement dated as
of June 30, 1999 between VMS and PHH Personal Lease Corporation as Sellers,
and the Initial Beneficiary, as Purchaser.
"Business Day" shall have the meaning set forth in Section 5.3(e).
"Business Trust Statute" shall have the meaning set forth in
Section 1.1.
"Certificate" means a SUBI Certificate or a UTI Certificate.
"Certificate of Title" shall have the meaning set forth in Section
2.1.
"Certificateholder" means a Person who holds right, title and
interest in a Certificate.
"Certificate Register" shall have the meaning set forth in Section
4.4(b).
"Claims" shall have the meaning set forth in Section 5.5.
"Contribution Agreement" means the Contribution Agreement dated as
of June 30, 1999 between the Initial Beneficiary and the Trust.
"Delaware Trustee" shall have the meaning set forth in the
Preamble.
"Fleet Receivables" shall have the meaning set forth in Section
2.1.
"Fleet Service Contracts" shall have the meaning set forth in
Section 2.1.
"FNBM" shall have the meaning set forth in the Recitals.
"Initial Beneficiary" shall have the meaning set forth in the
Preamble.
"Initial Beneficiary Group" shall have the meaning set forth in
Section 9.6.
"Insurance Policies" shall have the meaning set forth in Section
2.1.
"Leased Vehicles" shall have the meaning set forth in Section 2.1.
"Leases" shall have the meaning set forth in Section 2.1.
"Nominee Agreement" shall have the meaning set forth in Section
5.1(d).
"Obligor" means each Person that is obligated to make payment in
respect of a Lease or a Fleet Receivable.
"Opinion of Counsel" means a written opinion reasonably
satisfactory to the recipient thereof of legal counsel who is reasonably
satisfactory to the recipient and who may be an employee of the Servicer. An
Opinion of Counsel shall be prepared at the expense of the Servicer.
"Original Trust" shall have the meaning set forth in the Recitals.
"Paid-In-Advance Vehicles" shall have the meaning set forth in
Section 2.1.
"Person" means any individual, corporation, partnership, joint
venture, association, joint stock company, trust, bank, limited liability
company, trust company, estate (including any beneficiaries thereof),
unincorporated organizations or government or any agency or political
subdivision thereof.
"PHH" PHH Vehicle Management Services LLC.
"Portfolio" means the UTI Portfolio or any SUBI Portfolio.
"Preamble" means the first paragraph of the Agreement.
"Receivables Purchase Agreement" shall have the meaning set forth
in Section 2.1.
"Registrar of Titles" shall have the meaning set forth in Section
2.1.
-2-
"Secretary of State" means the Secretary of State of the State of
Delaware.
"Securitizations" shall have the meaning set forth in Section
5.1(a).
"Servicer" shall have the meaning set forth in Section 5.1(d).
"Servicing Agreement" shall have the meaning set forth in Section
5.1(d).
"Settlor" shall have the meaning set forth in the Preamble.
"Special Purpose Entity" shall mean a special purpose corporation,
partnership, limited partnership, trust, business trust, limited liability
company or any other entity created for one or more Securitizations.
"State of Qualification" shall have the meaning set forth in
Section 5.7.
"SUBI" shall have the meaning set forth in Section 4.2(a).
"SUBI Account" shall have the meaning set forth in Section 7.1(a).
"SUBI Assets" shall have the meaning set forth in Section 4.1(a).
"SUBI Certificate" shall have the meaning set forth in Section
4.2(b).
"SUBI Certificate Register" shall have the meaning set forth in
Section 4.4(b).
"SUBI Portfolio" shall have the meaning set forth in Section
4.2(a).
"SUBI Supplement" shall have the meaning set forth in Section
4.2(b).
"SUBI Trustee" shall have the meaning set forth in Section 4.2(d).
"Supplement" means a UTI Supplement or a SUBI Supplement.
"Trust" shall have the meaning set forth in Section 1.1.
"Trust Agency Agreement" shall have the meaning set forth in
Section 5.3(e).
-3-
"Trust Agent" shall have the meaning set forth in Section 5.3(e).
"Trust Assets" shall have the meaning set forth in Section 2.1.
"Trust Vehicles" shall have the meaning set forth in Section 2.1.
"Trustee Accounts" shall have the meaning set forth in Section
7.1(a).
"Trustee Bank" means a Person, in its individual capacity, that
acts as a Trustee hereunder (other than VMS in its capacity as UTI Trustee).
"Trustees" shall mean the Delaware Trustee, any UTI Trustee and any
SUBI Trustee.
"Undivided Trust Interest" or "UTI" shall have the meaning set
forth in Section 4.1(a).
"Undivided Trust Interest Certificate" or "UTI Certificate" shall
have the meaning set forth in Section 4.1(b).
"UTI Assets" shall have the meaning set forth in Section 4.1(a).
"UTI Pledge" means any pledge of, or the granting of a security
interest in, the UTI Certificate, or a portion thereof, by the holder
thereof.
"UTI Portfolio" means Trust Assets not allocated to a SUBI
Portfolio and remaining as part of the Undivided Trust Interest.
"UTI Supplement" shall have the meaning set forth in Section
4.1(b).
"UTI Trustee" shall have the meaning set forth in Section 4.1(c).
"Vehicle" means an automobile, truck, truck chassis, truck body,
truck tractor, truck trailer or another type of motorized vehicle or
equipment, in each case together with all accessories, additions and parts
constituting a part thereof and all accessions thereto.
"VMS" shall have the meaning set forth in the Preamble.
-4-
EXHIBIT B
---------
X.X. XXXXXXXX TRUST
FORM OF UNDIVIDED TRUST INTEREST CERTIFICATE
evidencing an exclusive undivided interest in all UTI Assets
(as defined below).
(This Certificate does not represent an obligation of, or an interest
in, PHH Vehicle Management Services LLC or any of its affiliates.)
Number UTI-1
THIS CERTIFIES THAT RAVEN FUNDING LLC is the registered owner of a
nonassessable, fully-paid, exclusive undivided interest in the Trust Assets,
other than SUBI Assets (the "UTI Assets") (such interest, an "Undivided Trust
Interest"), of X.X. Xxxxxxxx Trust, a Delaware business trust (the "Trust"),
formed pursuant to an Amended and Restated Origination Trust Agreement dated
and effective as of June 30, 1999 (as amended, supplemented or otherwise
modified from time to time, the "Agreement"), among RAVEN FUNDING LLC, as
settlor and sole initial beneficiary (the "Initial Beneficiary"), PHH Vehicle
Management Services LLC ("VMS", as trustee of the UTI, together with any
successor or permitted assign, the "UTI Trustee", respectively), THE FIRST
NATIONAL BANK OF MARYLAND, as existing trustee, and WILMINGTON TRUST COMPANY,
a Delaware banking association (the "Delaware Trustee"). A summary of
certain of the pertinent portions of the Agreement is set forth below. To
the extent not otherwise defined herein, the capitalized terms herein have
the meanings set forth in the Agreement.
This Certificate is one of the duly authorized certificates issued
under the Agreement and designated as "X.X. Xxxxxxxx Trust Undivided Trust
Interest Certificates" (the "Undivided Trust Interest Certificates"). This
Undivided Trust Interest Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the
holder of this Undivided Trust Interest Certificate by virtue of the
acceptance hereof assents and by which such holder is bound. Also to be
issued under the Agreement are various series of Certificates, each
designated as "X.X. Xxxxxxxx Trust Special Unit of Beneficial Interest
Certificates (the "SUBI Certificates" and, together with the Undivided Trust
Interest Certificate(s), the "Certificates"). Each series of SUBI
Certificates, taken together, will evidence exclusive undivided interest in
the applicable SUBI Portfolio.
The rights of the holder of this Certificate to the Trust Assets
and the proceeds thereof are and will be as set forth in the Agreement. This
Certificate constitutes a "Security" as such term is defined in the New York
Uniform Commercial Code and the Delaware Uniform Commercial Code.
The Certificates do not represent an obligation of, or an interest
in, the Initial Beneficiary, VMS, the Wilmington Trust Company or any of
their respective Affiliates. The Certificates are limited in right of
payment to certain collections and recoveries respecting the Trust Assets not
allocated to any SUBI Portfolio, all to the extent and as more specifically
set forth in the Agreement. A copy of the Agreement may be examined during
normal business hours at the principal office of the UTI Trustee or the
Delaware Trustee, and at such other places, if any, designated by the
Delaware Trustee, by the holder hereof upon request.
By accepting this Certificate, the holder hereof waives any claim
to any proceeds or assets of the Trustees and to all of the Trust Assets from
time to time included within each SUBI Portfolio as SUBI Assets and those
proceeds or assets derived from or earned by such SUBI Assets.
The Agreement permits the amendment thereof and the modification of
the rights and obligations of the parties thereto and the rights of holders
of Undivided Trust Interest Certificates at any time by the Initial
Beneficiary and the UTI Trustee, prior to the first Securitization.
Thereafter, any such amendment shall require such additional approvals as may
be required by each Securitization.
As provided in the Agreement, any transfer or assignment of this
Certificate and the underlying interests represented hereby is registrable
upon surrender of this Certificate for registration of transfer with the
Delaware Trustee (or the Trust Agent, if applicable) or by any successor
Delaware Trustee, accompanied by a written instrument of transfer in form
satisfactory to the Delaware Trustee duly executed by the holder hereof or
such holder's attorney duly authorized in writing, and thereupon one or more
new Undivided Trust Interest Certificates of a like aggregate fractional
undivided interest will be issued to the designated permitted transferee.
Prior to due presentation of this Certificate for registration of a
transfer, the Trustees and each Trust Agent may treat the Person or entity in
whose name this Certificate is registered as the owner hereof for all
purposes, and, except as provided for in the Agreement, neither the Trustees
nor any such Trust Agent shall be affected by any notice to the contrary.
The obligations and responsibilities created by the Agreement and
the Trust created thereby shall terminate upon the unanimous written
agreement of all of the holders of Certificates.
The holder of this Undivided Trust Interest Certificate covenants
and agrees that prior to the date which is one year and one day after the
-2-
date upon which all obligations under each Securitization have been paid in
full, it will not institute against, or join any other Person in instituting
against, the Trust, the Initial Beneficiary, or any other Special Purpose
Entity, or any general partner or any Special Purpose Entity that is a
partnership, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state
bankruptcy or similar law.
No bankruptcy, reorganization arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state
bankruptcy, insolvency or similar law shall be instituted by the Trust
without the unanimous consent of all Trustees and Certificateholders under
the Agreement. A SUBI Trustee shall not so consent unless directed to do so
by the holder of the applicable SUBI and any assignee or pledgee of such
SUBI, and the Delaware Trustee shall not so consent unless directed to do so
by all of the Certificateholders.
-3-
Unless this Certificate shall have a certificate of authentication
attached, executed by the Delaware Trustee or an agent thereof by manual
signature, this Certificate shall not entitle the holder hereof to any
benefit under the Agreement or be valid for any purpose.
IN WITNESS WHEREOF, the Delaware Trustee on behalf of the Trust and
not in its individual capacity has caused this Undivided Trust Interest
Certificates to be duly executed.
Dated: June 30, 1999
X.X. XXXXXXXX TRUST
By: WILMINGTON TRUST COMPANY,
not in its individual capacity but
solely as Delaware Trustee
By _____________________________________
Authorized Officer
-4-
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is the UTI Certificate referred to in the within-mentioned
Trust Agreement.
Dated: June 30, 1999 WILMINGTON TRUST COMPANY,
not in its individual capacity but
solely as Delaware Trustee
By___________________________________
Authorized Officer
EXHIBIT C
---------
CERTIFICATE OF TRUST
OF
X.X. XXXXXXXX TRUST
This Certificate of Trust of X.X. Xxxxxxxx Trust (the "Trust") is
being duly executed and filed on behalf of the Trust by the undersigned, as
Trustees, to form a business trust under the Delaware Business Trust Act (12
Del. C. Section 3801 et seq.) (the "Act").
1. Name. The name of the trust formed hereby is X.X. Xxxxxxxx
Trust.
2. Delaware Trustee. The name and the business address of the
trustee of the Trust in the State of Delaware is Wilmington Trust Company,
Xxxxxx Square North, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000-
0001, Attention: Corporate Trust Administration.
3. Series. Pursuant to Section 3806(b)(2) of the Act, the Trust
shall issue one or more series of beneficial interests having the rights and
preferences set forth in the governing instrument of the Trust, as the same
may be amended from time to time (each a "Series").
4. Notice of Limitation of Liabilities of each Series. Pursuant
to Section 3804(a) of the Act, there shall be a limitation on liabilities of
each Series such that (a) the debts, liabilities, obligations and expenses
incurred, contracted for or otherwise existing with respect to a particular
Series shall be enforceable against the assets of such Series only, and not
against the assets of the Trust generally or the assets of any other Series
thereof and (b) none of the debts, liabilities, obligations and expenses
incurred, contracted for or otherwise existing with respect to the Trust
generally or any other Series thereof shall be enforceable against the assets
of such Series.
5. Effective Date. This Certificate of Trust shall be effective
as of June 30, 1999.
6. Power of Attorney. PHH Vehicle Management Services LLC (the
"Servicer") has been designated by the Trustees and the Trust as the true and
lawful attorney-in-fact for and on behalf of the Trustees and the Trust, with
full power and authority to perform any and all acts related to managing,
servicing, administering and collecting any part of the corpus of the Trust
and is authorized and empowered to execute other documents relating thereto.
The Servicer also has the right, power and authority to designate in writing
other persons and entities ("Servicer Designees") as true and lawful
attorney's-in-fact for and on behalf of the Trustees and the Trust to do
anything that PHH Vehicle Management Services LLC has the power to do under
this paragraph. Without limiting the generality of the foregoing, PHH
Vehicle Management Services LLC or any Servicer Designee is hereby authorized
and empowered by the Trustees and the Trust to execute and deliver, on behalf
of the Trustees and the Trust, any and all applications for certificates of
title or duplicates of such certificates in the name of the Trust, any and
all applications for registrations of vehicles and/or license plates, any and
all applications for transfers of certificates of title or registrations for
vehicles and/or license plates, any and all other instruments, certificates
or other documents which PHH Vehicle Management Services LLC or a Servicer
Designee deems necessary or advisable to record, hold or release title to
and/or registration of motor vehicles in the name of the Trust. A photocopy
or original of this Certificate of Trust shall have the same effect as an
original, manually signed and acknowledged Power of Attorney.
WILMINGTON TRUST COMPANY, not in its
individual capacity but solely as
Delaware Trustee
By:_______________________________________
Name:
Title:
PHH VEHICLE MANAGEMENT SERVICES LLC,
as UTI Trustee
By:______________________________________
Name:
Title:
-2-
Acknowledgment
STATE OF DELAWARE )
) ss.:
COUNTY OF DELAWARE )
On this ____ day of June __, 1999, before me personally appeared
____________ _______, who acknowledged himself to be an officer of the above
Delaware Trustee and that he, as such officer, being authorized to do so,
executed and delivered the foregoing instrument for the purposes therein
contained as the free act and deed of said Delaware Trustee, and as his free
act and deed as an officer of said Delaware Trustee.
IN WITNESS WHEREOF, I hereto set my hand and official seal.
__________________________________________
Notary Public
My commission expires:____________________
-3-
Acknowledgment
STATE OF [MARYLAND] )
) ss.:
COUNTY OF __________ )
On this ____ day of June ___, 1999, before me personally appeared
_____________ _______, who acknowledged himself to be an officer of the above
UTI Trustee and that he, as such officer, being authorized to do so, executed
and delivered the foregoing instrument for the purposes therein contained as
the free act and deed of said UTI Trustee, and as his free act and deed as an
officer of said UTI Trustee.
IN WITNESS WHEREOF, I hereto set my hand and official seal.
______________________________________
Notary Public
My commission expires:________________
-4-
EXHIBIT D
---------
REQUIRED REPRESENTATIONS OF A TRANSFEREE
OF ANY BENEFICIAL INTEREST IN THE TRUST
The [transferee] is not and will not become for U.S. federal income
tax purposes a partnership, grantor trust, or S corporation unless (i) none
of the direct or indirect beneficial owners of any interest in the
[transferee] have or ever will have all or substantially all the value of its
interest in such [transferee] attributable to the interest of such
[transferee] in the Trust and (ii) it is not and will not be a principal
purpose of the arrangement involving the transferee to permit any partnership
to satisfy the 100 partner limitation of Treasury Regulation Section 1.7704-
1(h)(1)(ii) necessary for such partnership not to be classified as a publicly
traded partnership under the Code.
The [transferee] may not acquire nor sell, transfer, assign,
participate, pledge, or otherwise dispose of its interest in the Trust, or
cause its interest to be marketed, on or through an established securities
market.
