United Auto Credit Securitization Trust Automobile receivables-backed notes series

Transcription

1 Standard & Poor s Ratings Services 17g-7(N) Representations & Warranties Disclosure Report JAN. 14, 2016 SEC Rule 17g-7(N) SEC Rule 17g-7(N) requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms related to the assets available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. This is Standard & Poor s Ratings Services 17g-7(N) Representations & Warranties Disclosure Report for the transaction shown in the title above. United Auto Credit Securitization Trust Automobile receivables-backed notes series Primary Credit Analyst: Rahel Avigdor, New York, (1) ; rahel.avigdor@standardandpoors.com Secondary Contact: Elizabeth T Fitzpatrick, New York, (1) ; elizabeth.fitzpatrick@standardandpoors.com As required by SEC Rule 17g-7(N), this report includes only those representations, warranties and enforcement mechanisms related to the assets available to investors. This report does not include representations and warranties without a corresponding enforcement mechanism or remedy in the transaction documents that may be exercised by investors (or their representatives).

2 Table 1 No. Benchmark Transaction Representations And Warranties (Purchase Agreement And Sale And Servicing Agreement) 1 Seller Represents and Warrants The Seller Represents and Warrants [Originator] makes the following representations and warranties as to the Receivables on which the Purchaser [Intermediary] is deemed to have relied in acquiring the Receivables. Such representations and warranties speak as of the Cutoff Date and as of the Closing Date (unless, by its terms a representation or warranty speaks specifically as of such date only). The Seller [Intermediary] makes the following representations and warranties as to the Receivables on which the Issuer is deemed to have relied in acquiring the Receivables. Such representations and warranties speak as of the Cutoff Date and as of the Closing Date (unless, by its terms a representation or warranty speaks specifically as of such date only), but shall survive the sale, transfer and assignment of the Receivables to the Issuer, and pledge thereof to the Indenture Trustee pursuant to the Indenture. Representations and Warranties of the Seller. The Seller makes the following representations and warranties as of the date hereof, as of the Closing Date and as of each Subsequent Transfer Date, on which the Purchaser relies in purchasing the Receivables and the Other Conveyed Property hereunder and under any Subsequent Purchase Agreement and in transferring the Receivables and the Other Conveyed Property to the Issuer under the Sale and Servicing Agreement and any Subsequent Transfer Agreement. Such representations are made as of the execution and delivery of this Agreement and as of the execution and delivery of any Subsequent Purchase Agreement, but shall survive the sale, transfer and assignment of the Receivables and the Other Conveyed Property hereunder and under any Subsequent Purchase Agreement, and the sale, transfer and assignment thereof by the Purchaser to the Issuer under the Sale and Servicing Agreement and any Subsequent Transfer Agreement, and the pledge thereof to the Indenture Trustee under the Indenture. The Seller and the Purchaser agree that the Purchaser will assign to the Issuer all of the Purchaser's rights under this Agreement and under any Subsequent Purchase Agreement and that the Indenture Trustee will thereafter be entitled to enforce this Agreement and any Subsequent Purchase Agreement against the Seller in the Indenture Trustee's own name on behalf of the Noteholders. Schedule of Representations. The representations and warranties set forth on the Schedule of Representations with respect to the Initial Receivables as of the date hereof and as of the Closing Date, and with respect to the Subsequent Receivables as of the related Subsequent Transfer Date, are true and correct. "Schedule of Representations" means the Schedule of Representations and Warranties of Seller attached hereto as Schedule B. Representations and Warranties of United Auto. United Auto has made, under the Purchase Agreement, each of the representations and warranties set forth on the Schedule of Representations attached hereto as Schedule B and represents and warrants that the representations and warranties set forth on the Schedule of Representations are true and correct in all material respects. The Issuer is deemed to have relied on such representations and warranties in acquiring the Receivables. Such representations and warranties speak as of the execution and delivery of this Agreement and as of the Closing Date, in the case of the Initial Receivables, and as of the related Subsequent Transfer Date, in the case of the Subsequent Receivables, but shall survive the sale, transfer and assignment of the See Disclaimer on the last page. Page 2

3 Receivables to the Issuer and the pledge thereof to the Indenture Trustee pursuant to the Indenture and shall not be waived. Representations and Warranties of Depositor. The Depositor hereby represents and warrants that each of the representations and warranties set forth on the Schedule of Representations attached hereto as Schedule B is true and correct. The Issuer is deemed to have relied on such representations and warranties in acquiring the Receivables. Such representations and warranties speak as of the execution and delivery of this Agreement and as of the Closing Date, in the case of the Initial Receivables, and as of the related Subsequent Transfer Date, in the case of the Subsequent Receivables, but shall survive the sale, transfer and assignment of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee pursuant to the Indenture and shall not be waived. Covenants, Representations, and Warranties of Servicer and United Auto. (b) United Auto represents, warrants and covenants as of the Closing Date and each Subsequent Transfer Date as to itself that the representations and warranties set forth on the Schedule of Representations attached hereto as Schedule B are true and correct. 2 Origination of Receivables. Each Receivable (i) was originated in the United States by a Dealer for the retail sale of a Financed Vehicle in the ordinary course of such Dealer s business and has been fully executed by the parties thereto, (ii) was purchased by the Sponsor from a Dealer and was validly assigned by such Dealer to the Sponsor. Origination. Each Receivable was originated in the United States. Characteristics of Receivables. Each Receivable (i) was originated (B) by United Auto, (C) by an Originating Affiliate and was validly assigned by such Originating Affiliate to United Auto or (D) by a Dealer and purchased by United Auto from such Dealer under an existing Dealer Agreement or pursuant to a Dealer Assignment with United Auto and was validly assigned by such Dealer to United Auto pursuant to a Dealer Assignment, (ii) was originated by United Auto, such Originating Affiliate or such Dealer for the retail sale of a Financed Vehicle in the ordinary course of United Auto's, such Originating Affiliate's or the Dealer's business, in each case was originated in accordance with United Auto's credit policies and was fully and properly executed by the parties thereto, and United Auto, each Originating Affiliate and each Dealer had all necessary licenses and permits to originate Receivables in the state where United Auto, each such Originating Affiliate or each such Dealer was located, Certain Characteristics of the Receivables. G. Each Obligor had a billing address in the United States as of the date of origination of the related See Disclaimer on the last page. Page 3

4 Receivable, is a natural person and is not an Affiliate of any party to the Basic Documents. 3 Simple Interest. Each Receivable (i) provides for equal monthly payments in U.S. dollars that fully amortize the Amount Financed by its stated maturity and yield interest at the Annual Percentage Rate and (ii) applies a simple interest method of allocating a fixed payment to principal and interest, so that the portion of such payment allocated to interest is equal to the APR multiplied by the principal balance multiplied by the number of days elapsed since the preceding payment of interest was made divided by 365. Characteristics of Receivables. Each Receivable (iv) is a Receivable which provides for level monthly payments (provided that the payment in the first monthly payment period and the payment in the final monthly payment period of the Receivable may be minimally different from the normal period and level payment) which, if made when due, shall fully amortize the Amount Financed over the original term and Certain Characteristics of the Receivables. H. Each Receivable is denominated in, and each Contract provides for payment in, United States dollars. Interest Calculation. Each Contract provides for the calculation of interest payable thereunder under either the "simple interest" method "Simple Interest Method" means the method of allocating a fixed level payment on an obligation between principal and interest, pursuant to which the portion of such payment that is allocated to interest is equal to the product of the fixed rate of interest on such obligation multiplied by the period of time (expressed as a fraction of a year, based on the actual number of days in the calendar month and 365/366 days in the calendar year) elapsed since the preceding payment under the obligation was made. 4 Prepayment. Each Receivable allows for prepayment and partial prepayments without penalty and requires that the Principal Balance be paid in full to prepay the contract in full. Prepayment. Each Receivable allows for prepayment and partial prepayments without penalty and requires that a prepayment by the related Obligor will fully pay the principal balance and accrued interest through the date of prepayment based on the Receivable's Annual Percentage Rate. "Annual Percentage Rate" or "APR" of a Receivable means the annual percentage rate of finance charges or service charges, as stated in the related Contract. 5 No Government Obligors. No Receivable is the obligation of the United States of America or any State or local government or from any agency, department, instrumentality or political subdivision of the United States or any State or local government. 6 Insurance. Each Receivable requires the Obligor to obtain physical No Government Obligor. No Obligor is the United States of America or any State or any agency, department, subdivision or instrumentality thereof. Insurance. At the time of an origination of a Receivable by United See Disclaimer on the last page. Page 4

5 damage insurance covering the Financed Vehicle. 7 Valid Assignment. No Receivable has been originated in, or is subject to the laws of, any jurisdiction under which the sale of such Receivable under this Agreement would be unlawful, void or voidable. The terms of the Receivable do not limit the right of the owner of such Receivable to sell such Receivable. The Sponsor has not entered into any agreement with any Person that prohibits, restricts or conditions the sale of any Receivable by the Sponsor. Auto, an Originating Affiliate or a Dealer, each Financed Vehicle is required to be covered by a comprehensive and collision insurance policy (i) in an amount at least equal to the lesser of (a) its maximum insurable value or (b) the principal amount due from the Obligor under the related Receivable, (ii) naming United Auto (or an Originating Affiliate) as loss payee and (iii) insuring against loss and damage due to fire, theft, transportation, collision and other risks generally covered by comprehensive and collision coverage. Each Receivable requires the Obligor to maintain physical loss and damage insurance, naming United Auto or an Originating Affiliate and its successors and assigns as additional insured parties, and each Receivable permits the holder thereof to obtain physical loss and damage insurance at the expense of the Obligor if the Obligor fails to do so. No Financed Vehicle is insured under a policy of force-placed insurance on the Initial Cutoff Date or the Subsequent Cutoff Date, as applicable. Lawful Assignment. No Receivable was originated in, or is subject to the laws of, any jurisdiction the laws of which would make unlawful, void or voidable the sale, transfer and assignment of such Receivable under this Agreement or the applicable Subsequent Purchase Agreement or pursuant to transfers of the Notes. Transfer. Each Receivable prohibits the sale or transfer of the Financed Vehicle without the consent of the Depositor. 8 Compliance with Law. Each Receivable complied in all material respects at the time it was originated and as of the Closing Date will comply in all material respects with all requirements of federal, State, and local laws. Compliance with Law. All requirements of applicable federal, state and local laws, and regulations thereunder (including usury laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson- Moss Warranty Act, the Consumer Financial Protection Bureau's Regulation "B" and "Z" (including amendments to the Federal Reserve's Official Staff Commentary to Regulation Z, effective October 1, 1998, concerning negative equity loans), the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Servicemembers Civil Relief Act, each applicable state Motor Vehicle Retail Installment Sales Act, the Gramm- Leach-Bliley Act and state adaptations of the National Consumer Act and of the Uniform Consumer Credit Code and other consumer credit laws and equal credit opportunity and disclosure laws) in respect of the Receivables and the Financed Vehicles, have been complied with in all material respects, and each Receivable and the sale of the Financed Vehicle evidenced by each Receivable complied at the time it was originated or made and now complies in all material respects with all applicable legal requirements. 9 Binding Obligation. Binding Obligation. See Disclaimer on the last page. Page 5

6 Each Receivable is on a form contract that includes rights and remedies allowing the holder to enforce the obligation and realize on the Financed Vehicle and represents the legal, valid and binding payment obligation of the Obligor, enforceable in all material respects by the holder of the Receivable, except as may be limited by bankruptcy, insolvency, reorganization or other laws relating to the enforcement of creditors rights or by general equitable principles and consumer protection laws. Each Receivable represents the genuine, legal, valid and binding payment obligation of the Obligor thereon, enforceable by the holder thereof in accordance with its terms, except (i) as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors' rights generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law and (ii) as such Receivable may be modified by the application after the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, of the Servicemembers Civil Relief Act; and all parties to each Receivable had full legal capacity to execute and deliver such Receivable and all other documents related thereto and to grant the security interest purported to be granted thereby. Characteristics of Receivables. Each Receivable (iii) contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for realization against the collateral security, 10 Perfected Security Interest in Financed Vehicle. Each Receivable is secured by a security interest in the related Financed Vehicle, in favor of the Sponsor as secured party, which was validly created and is a perfected, first priority security interest, or the Sponsor has commenced procedures that will result in the perfection of a first priority security interest in the related Financed Vehicle, and said security interest is assignable by the Sponsor to the Depositor. Security Interest in Financed Vehicle. Each Receivable created or shall create a valid, binding and enforceable first priority security interest in favor of United Auto (or an Originating Affiliate which first priority security interest has been assigned to United Auto) in the Financed Vehicle. The Lien Certificate for each Financed Vehicle shows, or if a new or replacement Lien Certificate is being applied for with respect to such Financed Vehicle the Lien Certificate will be received within 180 days of the origination date of the related Receivable and will show, United Auto (or an Originating Affiliate) named as the original secured party under each Receivable as the holder of a first priority security interest in such Financed Vehicle. With respect to each Receivable for which the Lien Certificate has not yet been returned from the Registrar of Titles, United Auto or the related Originating Affiliate has applied for or received written evidence from the related Dealer that such Lien Certificate showing United Auto, an Originating Affiliate or the Issuer, as applicable, as first lienholder has been applied for and the Originating Affiliate's security interest has been validly assigned by the Originating Affiliate to United Auto and United Auto's security interest (assigned by United Auto to the Depositor pursuant to the Purchase Agreement or the applicable Subsequent Purchase Agreement) has been validly assigned by the Depositor to the Trust pursuant to the Sale and Servicing Agreement or the applicable Subsequent Transfer Agreement. The Sale and Servicing Agreement or the applicable Subsequent Transfer Agreement creates a valid and continuing security interest (as defined in the UCC) in the Receivables in favor of the Trust, which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers from the Depositor. Immediately after the sale, transfer and assignment by See Disclaimer on the last page. Page 6

7 the Depositor to the Trust, each Receivable will be secured by an enforceable and perfected first priority security interest in the Financed Vehicle in favor of the Indenture Trustee as secured party, which security interest is prior to all other Liens upon and security interests in such Financed Vehicle which now exist or may hereafter arise or be created (except, as to priority, for any lien for taxes, labor or materials affecting a Financed Vehicle). As of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, there were no Liens or claims for taxes, work, labor or materials affecting a Financed Vehicle which are or may be Liens prior or equal to the Liens of the related Receivable. 11 Good Title. Immediately before the sale under this Agreement, the Sponsor had good title to each Receivable free and clear of any Lien other than Permitted Liens and, immediately upon the sale under this Agreement, the Depositor will have good title to each Receivable, free and clear of any Lien other than Permitted Liens. 12 All Filings Made. As of the Closing Date, all filings (including UCC filings) necessary in any jurisdiction to provide third parties with notice of transfer and assignment herein contemplated, to perfect the sale of the Receivables from the Seller to the Purchaser and from the Purchaser to the Issuer and to give the Indenture Trustee a first priority perfected security interest in the Receivables shall have been made. Good Title. Immediately prior to the conveyance of the Receivables to the Trust pursuant to this Agreement or a Subsequent Transfer Agreement, as applicable, the Depositor was the sole owner thereof and had good and indefeasible title thereto, free of any Lien and, upon execution and delivery of this Agreement by the Depositor, the Trust shall have good and indefeasible title to and will be the sole owner of such Receivables, free of any Lien. No Dealer has a participation in, or other right to receive, proceeds of any Receivable. The Depositor has not taken any action to convey any right to any Person that would result in such Person having a right to payments received under the related Insurance Policies or the related Dealer Agreements or Dealer Assignments or to payments due under such Receivables. All Filings Made. All filings (including UCC filings (including the filing by the Depositor of all appropriate financing statements in the proper filing office in the State of Delaware under applicable law in order to perfect the security interest in the Receivables granted to the Trust hereunder)) required to be made by any Person and actions required to be taken or performed by any Person in any jurisdiction to give the Trust and the Indenture Trustee a first priority perfected lien on, or ownership interest in, the Receivables and the proceeds thereof and the Other Conveyed Property have been made, taken or performed. Perfection. The Depositor has taken all steps necessary to perfect United Auto's security interest against the related Obligors in the property securing the Receivables and will take all necessary steps on behalf of the Trust to maintain the Trust's perfection of the security interest created by each Receivable in the related Financed Vehicle. 13 Chattel Paper. Each Receivable constitutes chattel paper that is in the form of either tangible chattel paper or electronic chattel paper as such term is defined in the UCC. Chattel Paper. The Receivables constitute "tangible chattel paper" within the meaning of the UCC as in effect in the States of California, New York and Delaware. See Disclaimer on the last page. Page 7

8 14 No Default; No Repossession. Except for payment delinquencies that, as of the Cutoff Date, have been continuing for a period of not more than 29 days, no default, breach, violation, or event permitting acceleration under the terms of any Receivable shall have occurred as of the Cutoff Date; no continuing condition that with notice or the lapse of time would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable shall have arisen; the Seller shall not have waived any of the foregoing; and no Financed Vehicle has been repossessed without reinstatement as of the Cutoff Date. No Default. There has been no default, breach, violation or event permitting acceleration under the terms of any Receivable (other than payment delinquencies of not more than 30 days), and no condition exists or event has occurred and is continuing that with notice, the lapse of time or both would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable, and there has been no waiver of any of the foregoing. As of the Initial Cutoff Date or the Subsequent Cutoff Date, as applicable, no Financed Vehicle had been repossessed. Certain Characteristics of the Receivables. L. No automobile related to a Receivable was held in repossession inventory as of the Initial Cutoff Date or the Subsequent Cutoff Date, as applicable. 15 Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been released from the Lien granted by the related Receivable in whole or in part. 16 No Material Amendments or Modifications. No material provision of a Receivable has been affirmatively amended, except amendments and modifications that are contained in the Receivables Files. No Receivable has been amended or rewritten to extend the due date for any payment date other than in connection with a change of the monthly due date in accordance with the Credit and Collection Policy. 17 No Defenses. To the Sponsor s knowledge, no right of rescission, setoff, counterclaim or defense has been asserted or threatened with respect to any Receivable. 18 One Original. There is only one original executed copy of each Receivable. 19 No Payment Default. Except for payments that are not more than 30 days Delinquent as of the Cutoff Date, no payment defaults exist. Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, and the Financed Vehicle securing each such Receivable has not been released from the lien of the related Receivable in whole or in part. No terms of any Receivable have been waived, altered or modified in any respect since its origination, except by instruments or documents identified in the Receivable File or the Servicer's electronic records. Characteristics of Receivables. Each Receivable (v) has not been amended or collections with respect to which waived, other than as evidenced in the Receivable File or the Servicer's electronic records relating thereto. No Defenses. No Receivable is subject to any right of rescission, setoff, counterclaim or defense and no such right has been asserted or threatened with respect to any Receivable. One Original. There is only one original executed copy of each Contract. No Default. There has been no default, breach, violation or event permitting acceleration under the terms of any Receivable (other than payment delinquencies of not more than 30 days), Certain Characteristics of the Receivables. See Disclaimer on the last page. Page 8

9 E. No Receivable was more than 30 days past due as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable. 20 Maturity of Receivables. Each receivable has an original maturity date of not greater than # months. 21 Scheduled Payments. Certain Characteristics of the Receivables. B. Each Receivable had an original maturity as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, of not more than 66 months. Not included in the Transaction. Each Receivable has a first scheduled due date not later than 30 days after the Cutoff Date. 22 Schedule of Receivables. Selection Procedures. the information in the Schedule of Receivables is true and correct in all material respects as of the Cutoff Date, and no selection procedures believed to be adverse to the Note holders have been utilized in selecting the Receivables from other receivables of the Sponsor that meet the criteria specified. Schedule of Receivables. The information set forth in the Schedule of Receivables has been produced from the Electronic Ledger and was true and correct in all material respects as of the close of business on the Initial Cutoff Date or Subsequent Cutoff Date, as applicable. Computer Tape. The Computer Tape made available by the Depositor to the Trust on the Closing Date or any Subsequent Transfer Date, as applicable, was complete and accurate as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, and includes a description of the same Receivables that are described in the Schedule of Receivables. Adverse Selection. No selection procedures adverse to the Noteholders were utilized in selecting the Receivables from those receivables owned by the Depositor which met the selection criteria set forth in clauses (A) through (M) of number 26 of this Schedule B. 23 Not included in the Benchmark. No Fraud or Misrepresentation. 24 Not included in the Benchmark. Obligor Bankruptcy. 25 Not included in the Benchmark. Marking Records. Each Receivable was originated (i) by United Auto, (ii) by an Originating Affiliate and was assigned by the Originating Affiliate to United Auto or (iii) by a Dealer and was sold by the Dealer to United Auto, and was sold by United Auto to the Depositor, in each case, without any fraud or misrepresentation on the part of such Originating Affiliate, Dealer or United Auto. At the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, no Obligor had been identified on the records of United Auto as being the subject of a current bankruptcy proceeding. Each of United Auto and the Depositor has indicated in its files that the Receivables have been sold to the Trust See Disclaimer on the last page. Page 9

10 pursuant to the Sale and Servicing Agreement and Granted to the Indenture Trustee pursuant to the Indenture. Further, United Auto has indicated in its computer files that the Receivables are owned by the Trust. 26 Not included in the Benchmark. Receivable Files Complete. 27 Not included in the Benchmark. No Impairment. There exists a Receivable File pertaining to each Receivable and such Receivable File contains the original Lien Certificate or a copy of the application therefor. Related documentation concerning the Receivable, including any documentation regarding modifications of the Contract, will be maintained electronically by the Servicer in accordance with customary policies and procedures. Each of such documents which is required to be signed by the Obligor has been signed by the Obligor in the appropriate spaces. All blanks on any form have been properly filled in and each form has otherwise been correctly prepared. With respect to any Receivables that are tangible chattel paper, the complete Receivable File, including a fully executed original of the Contract, for each Receivable currently is in the possession of the Custodian. The Depositor has not done anything to convey any right to any Person that would result in such Person having a right to payments due under the Receivables or otherwise to impair the rights of the Trust, the Indenture Trustee and the Noteholders in any Receivable or the proceeds thereof. Other than the security interest granted to the Trust pursuant to this Agreement and except any other security interests that have been fully released and discharged as of the Closing Date (or the related Subsequent Transfer Date in the case of any Subsequent Receivables), the Depositor has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables. The Depositor has not authorized the filing of and is not aware of any financing statements against the Depositor that include a description of collateral covering the Receivables other than any financing statement relating to the security interest granted to the Trust hereunder or that has been terminated. The Depositor is not aware of any judgment or tax lien filings against it. 28 Not included in the Benchmark. Receivable Not Assumable. No Receivable is assumable by another Person in a manner which would release the Obligor thereof from such Obligor's obligations to the owner thereof with respect to such Receivable. 29 Not included in the Benchmark. Certain Characteristics of the Receivables. A. Each Receivable had a remaining maturity as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, of not more than 66 months. C. Each Receivable had a remaining Principal See Disclaimer on the last page. Page 10

11 30 Not included in the Benchmark. Lockbox Account. 31 Not included in the Benchmark. Lien Enforcement. Balance as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, of at least $500 and not more than $25,000. D. Each Receivable had an Annual Percentage Rate as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable, of at least 15.00% and not more than 36.00%. F. No funds had been advanced by United Auto, any Originating Affiliate, any Dealer or anyone acting on behalf of any of them in order to cause any Receivable to qualify under clause (E) above. I. Each Receivable is identified on the Servicer's master servicing records as a retail installment sales contract. J. Each Receivable arose under a Contract that is assignable without the consent of, or notice to, the Obligor thereunder, and does not contain a confidentiality provision that purports to restrict the ability of the Servicer to exercise its rights under the Sale and Servicing Agreement, including its right to review the Contract. K. Each Receivable arose under a Contract with respect to which United Auto has performed all obligations required to be performed by it thereunder, and, in the event such Contract is an installment sales contract, delivery of the Financed Vehicle to the related Obligor has occurred. M. No Obligor was in bankruptcy as of the Initial Cutoff Date or Subsequent Cutoff Date, as applicable. Each Obligor has been, or will be, directed to make all payments on their related Receivable to the Lockbox Account. Each Receivable provides for enforcement of the lien or the clear legal right of repossession, as applicable, on the Financed Vehicle securing such Receivable. 32 Not included in the Benchmark. Offering Memorandum Description. 33 Not included in the Benchmark. Risk of Loss. Each Receivable conforms (or, in the case of Subsequent Receivables will conform), and all Receivables in the aggregate conform, in all material respects to the description thereof set forth in the Offering Memorandum. Each Contract contains provisions requiring the Obligor to assume all risk of loss or malfunction on the related Financed Vehicle, requiring the Obligor to pay all sales, use, property, excise and other similar taxes imposed on See Disclaimer on the last page. Page 11

12 34 Not included in the Benchmark. Leasing Business. 35 Not included in the Benchmark. Consumer Leases. Enforcement Mechanism(s) or with respect to the Financed Vehicle and making the Obligor liable for all payments required to be made thereunder, without any setoff, counterclaim or defense for any reason whatsoever, subject only to the Obligor's right of quiet enjoyment. To the best of the Depositor's and the Servicer's knowledge, as appropriate, no Obligor is a Person involved in the business of leasing or selling equipment of a type similar to the Obligor's related Financed Vehicle. No Receivable constitutes a "consumer lease" under either (a) the UCC as in effect in the jurisdiction the law of which governs the Receivable or (b) the Consumer Leasing Act, 15 USC Repurchase of Receivables. In the event of a breach of any representation or warranty set forth in Section # which materially and adversely affects the interest of the Purchaser [Intermediary] (or any assignee thereof ) in any Receivable, unless such breach shall have been cured in all material respects, the Seller [Originator] shall repurchase such Receivable by the last day of the second Collection Period following the Collection Period in which the discovery of the breach is made or notice is received, as the case may be. This repurchase obligation shall obtain for all representations and warranties of the Seller [Originator] contained in Section # of this Agreement whether or not the Seller [Originator] has knowledge of the breach at the time of the breach or at the time the representations and warranties were made. In consideration of the purchase of any such Receivable, the Seller [Originator] shall remit an amount equal to the Warranty Purchase Payment in respect of such Receivable to the Purchaser [Intermediary]. Repurchase of Receivables Upon Breach of Warranty. Upon the occurrence of a Repurchase Event, the Seller shall, unless the breach which is the subject of such Repurchase Event shall have been cured in all material respects, repurchase the Receivable and the Other Conveyed Property relating thereto from the Issuer if the interest of the Noteholders in such Receivable and the Other Conveyed Property is materially and adversely affected by any such breach and, simultaneously with the repurchase of such Receivable and the related Other Conveyed Property, the Seller shall deposit the Purchase Amount in full, without deduction or offset, to the Collection Account, pursuant to Section 5.6 of the Sale and Servicing Agreement. It is understood and agreed that, except as set forth in the final paragraph of this Section 5.1, the obligation of the Seller to repurchase any Receivable and the related Other Conveyed Property, as to which a breach occurred and is continuing, shall, if such obligation is fulfilled, constitute the sole remedy against the Seller for such breach available to the Purchaser, the Issuer, the Backup Servicer, the Noteholders, the Certificateholder, the Indenture Trustee on behalf of the Noteholders or the Owner Trustee on behalf of the Certificateholder. The provisions of this Section 5.1 are intended to grant the Issuer and the Indenture Trustee a direct right against the Seller to demand performance hereunder, and in connection therewith, the Seller waives any requirement of prior demand against the Purchaser with respect to such repurchase obligation. Any such repurchase shall take place in the manner specified in Section 3.3 of the Sale and Servicing Agreement and Section 5.2. Notwithstanding any other provision of this Agreement or the Sale and Servicing Agreement to the contrary, the obligation of the Seller under this Section shall not terminate upon a termination of the Seller as Servicer under the Sale and Servicing Agreement and shall be performed in accordance with the terms hereof See Disclaimer on the last page. Page 12

13 notwithstanding the failure of the Servicer or the Purchaser to perform any of their respective obligations with respect to such Receivable under the Sale and Servicing Agreement. "Repurchase Event" means the occurrence of a breach of any of the Seller's representations and warranties hereunder or in any Subsequent Purchase Agreement or any other event which requires the repurchase of a Receivable by the Seller under the Sale and Servicing Agreement. 37 Remedies. The Seller [Intermediary], the Servicer or the Owner Trustee, as the case may be, shall inform the other parties to this Agreement and the Indenture Trustee promptly, in writing, upon the discovery of any breach of the Seller s [Intermediary] representations and warranties made pursuant to Section # that materially and adversely affects the interests of the Issuer in any Receivable. By the last day of the second Collection Period following the Collection Period in which it discovers or receives notice of such breach, the Seller [Intermediary] shall, unless such breach shall have been cured in all material respects, repurchase such Receivable and, if necessary, the Seller [Intermediary] shall enforce the obligation of [Originator] under the Receivables Purchase Agreement to repurchase such Receivable from the Seller [Intermediary]. Repurchase upon Breach. (a) The Depositor, the Servicer, the Backup Servicer, the Indenture Trustee or the Owner Trustee, as the case may be, shall inform the other parties to this Agreement promptly, by notice in writing, upon the discovery of any breach of the Servicer's or the Depositor's representations and warranties made pursuant to Section 3.1 or 3.2, respectively. As of the last day of the second (or, if the Depositor so elects, the first) month following the discovery by the Depositor or receipt by the Depositor of notice of such breach, unless such breach is cured by such date, the Depositor shall have an obligation to repurchase any Receivable in which the interests of the Noteholders are materially and adversely affected by any such breach as of such date. The "second month" shall mean the calendar month following the calendar month in which discovery occurs or notice is given, and the "first month" shall mean the calendar month in which discovery occurs or notice is given. In consideration of and simultaneously with the repurchase of the Receivable, the Depositor shall remit, or cause United Auto to remit, to the Collection Account the Purchase Amount in the manner specified in Section 5.6 and the Issuer shall execute, at the Depositor's sole expense, such assignments and other documents reasonably requested by such person in order to effect such repurchase. Except as set forth in the last paragraph of this Section 3.3(a), the sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee, the Backup Servicer and the Noteholders with respect to a breach of representations and warranties pursuant to Section 3.1 or 3.2 and the agreement contained in this Section shall be the repurchase of Receivables pursuant to this Section, subject to the conditions contained herein, or to enforce the obligation of United Auto to the Depositor to repurchase such Receivables pursuant to the Purchase Agreement. The Issuer agrees that it will take the steps set forth in Section 5.2 of the Purchase Agreement with respect to Receivables and Other Conveyed Property that are repurchased by Depositor hereunder or repurchased by United Auto as Seller pursuant to Section 5.1 of the Purchase Agreement. Neither the Owner Trustee nor the Indenture Trustee shall have a duty to conduct any affirmative investigation as to the occurrence of any conditions requiring the repurchase of any Receivable pursuant to this Section. 38 Not included in the Benchmark. Servicer Termination Event. For purposes of this Agreement, each of the following See Disclaimer on the last page. Page 13

14 shall constitute a "Servicer Termination Event": Any representation, warranty or statement of the Servicer made in this Agreement or any certificate, report or other writing delivered pursuant hereto shall prove to be incorrect in any material respect as of the time when the same shall have been made, and the incorrectness of such representation, warranty or statement has a material adverse effect on the Trust or the Noteholders and, within 30 days after knowledge thereof by the Servicer or after written notice thereof, requiring the same to be redmedied, shall have been given to the Servicer by the Indenture Trustee or by holders of Notes representing at least 25% of the aggregate outstanding Note Balance of the Controlling Class thereof, the circumstances or condition in respect of which such representation, warranty or statement was incorrect shall not have been eliminated or otherwise cured. 39 Not included in the Benchmark. Consequences of a Servicer Termination Event. If a Servicer Termination Event shall occur and be continuing, the Indenture Trustee may, or at the direction of the Majority Noteholders, shall, by notice given in writing to the Servicer (and to the Indenture Trustee if given by the Noteholders) terminate all of the rights and obligations of the Servicer under this Agreement. On or after the receipt by the Servicer of such written notice or upon termination of the term of the Servicer, all authority, power, obligations and responsibilities of the Servicer under this Agreement, whether with respect to the Notes, the Certificates, the Receivables or the Other Conveyed Property or otherwise, automatically shall pass to, be vested in and become obligations and responsibilities of the Backup Servicer (or such other successor Servicer appointed by the Majority Noteholders); provided, however, that the successor Servicer shall have no liability with respect to any obligation which was required to be performed by the terminated Servicer prior to the date that the successor Servicer becomes the Servicer or any claim of a third party based on any alleged action or inaction of the terminated Servicer. The successor Servicer is authorized and empowered by this Agreement to execute and deliver, on behalf of the terminated Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement of the Receivables and the Other Conveyed Property and related documents to show the Trust as lienholder or secured party on the related Lien Certificates, or otherwise. The terminated Servicer agrees to cooperate with the successor Servicer in effecting the termination of the responsibilities and rights of the terminated Servicer under this Agreement, including the transfer to the successor Servicer for administration by it of all cash amounts that shall at the time be held by the terminated Servicer for deposit, or have been deposited by the terminated Servicer, in the Collection Account or thereafter received with respect to the Receivables and the delivery to the successor See Disclaimer on the last page. Page 14

15 Servicer of all Receivable Files, Monthly Records and Collection Records and a computer tape in readable form as of the most recent Business Day containing all information necessary to enable the successor Servicer to service the Receivables and the Other Conveyed Property. If requested by the Indenture Trustee (acting at the written direction of the Majority Noteholders) or if the successor Servicer so elects, the successor Servicer shall terminate the Lockbox Agreement and direct the Obligors to make all payments under the Receivables directly to the successor Servicer (in which event the successor Servicer shall process such payments in accordance with the first sentence of Section 4.2(e)), or to a lockbox established by the successor Servicer at the direction of the Indenture Trustee (acting at the written direction of the Majority Noteholders), at the successor Servicer's expense. The terminated Servicer shall grant the Indenture Trustee and the successor Servicer reasonable access to the terminated Servicer's premises at the terminated Servicer's expense. All reasonable costs and expenses (including attorneys' fees and disbursements) incurred by the Backup Servicer in connection with the transfer and assumption of servicing obligations hereunder from the Servicer to the Backup Servicer, as the successor Servicer, converting the Servicer's data to such party's computer system and amending this Agreement and the other Basic Documents to reflect such succession as Servicer pursuant to this Section shall be paid by the terminated Servicer promptly upon presentation of a written invoice setting forth reasonable transition expenses. In no event shall the Backup Servicer, if it becomes the successor Servicer, be responsible for any such transition expenses. If the terminated Servicer fails to pay the transition expenses, the transition expenses shall be payable pursuant to Section 5.7. Table 2 No. Benchmark Transaction Representations And Warranties (Indenture) 40 Issuer Represents and Warrants. [Issuing Entity] hereby represents and warrants to the Indenture Trustee as follows 41 Valid Security Interest. This Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables in favor of the Indenture Trustee which security interest is prior to all other Liens, and is enforceable as such against creditors of and purchasers Representations and Warranties. The Issuer hereby represents and warrants that each of the representations and warranties set forth on the Schedule of Representations attached hereto as Schedule A is true and correct. Such representations and warranties speak as of the execution and delivery of this Indenture, as of the Closing Date, and, with respect to any Subsequent Receivables, as of the related Subsequent Transfer Date, but shall survive the pledge of the Receivables to the Indenture Trustee and shall not be waived. Security Interest in Financed Vehicle. This Indenture creates a valid and continuing Security Interest (as defined in the applicable UCC) in the Receivables in favor of the Indenture Trustee, which Security Interest is prior to all other Liens, and is enforceable as such as against creditors of and See Disclaimer on the last page. Page 15

16 from the Issuing Entity. 42 Perfected Security Interest. All steps necessary to perfect the Issuing Entity s security interest against each Obligor in the property securing the Receivables have been taken. 43 Chattel Paper. The Receivables constitute chattel paper (including tangible chattel paper and electronic chattel paper ) accounts, instruments or general intangibles within the meaning of applicable UCC. 44 Good Title. The Issuing Entity owns and has good and marketable title to the Receivables free and clear of any Lien, claim or encumbrance of any Person. 45 All Filings Made. The Issuing Entity has caused or will have caused, within ten (10) days, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables granted to the Indenture Trustee under this Indenture. 46 Security Interest. Only Interest Granted. Other than the security interest granted to the Indenture Trustee under the Indenture, the Issuing Entity has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables. The Issuing Entity has not authorized the filing of, nor is the Issuing Entity aware of, any financing statements against the Seller, the Depositor or the Issuing Entity that include a description of collateral covering the Receivables other than the financing statements relating to the security interests granted to the Depositor, the Issuing Entity and the Indenture Trustee under the Basic Documents or any financing statement that has been purchasers from the Depositor. The Issuer owns and has good and marketable title to the Receivables free and clear of any Lien (other than the Lien in favor of the Indenture Trustee), claim or encumbrance of any Person. All Filings Made. The Issuer has taken all steps necessary to perfect the Indenture Trustee's security interest in the property securing the Receivables. Chattel Paper. The Receivables constitute "tangible chattel paper" within the meaning of the UCC as in effect in the States of California, New York and Delaware. Good Title. Immediately prior to the pledge of the Receivables to the Indenture Trustee pursuant to this Indenture, the Issuer was the sole owner thereof and had good and indefeasible title thereto, free of any Lien and, upon execution and delivery of this Indenture, the Trust shall have good and indefeasible title to and will be the sole owner of such Receivables, free of any Lien. No Dealer has a participation in, or other right to receive, proceeds of any Receivable. The Issuer has not taken any action to convey any right to any Person that would result in such Person having a right to payments received under the related Insurance Policies or the related Dealer Agreements, Dealer Assignments or to payments due under such Receivables. All Filings Made. The Issuer has taken all steps necessary to perfect the Indenture Trustee's security interest in the property securing the Receivables. All financing statements filed or to be filed against the Issuer in favor of the Indenture Trustee in connection herewith describing the Receivables contain a statement to the following effect: "A purchase of or a security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee." No Impairment. Other than the security interest granted to the Indenture Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Receivables. The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering the Receivables other than any financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been terminated. The Issuer is not aware of any judgment or tax lien filings against it. See Disclaimer on the last page. Page 16