EXHIBIT 10.10
DEPOSIT AND SECURITY AGREEMENT
THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-_____
This Deposit and Security Agreement (the "AGREEMENT") is made and
entered into as of ______________, 20____, by and among THE EDUCATION RESOURCES
INSTITUTE, INC., a private non-profit corporation organized under Chapter 180 of
the Massachusetts General Laws with its principal place of business at ▇▇ ▇▇.
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ("▇▇▇▇"), FIRST MARBLEHEAD DATA
SERVICES, INC., a corporation organized under the General Corporation Law of the
State of Massachusetts with its principal place of business at ▇▇ ▇▇. ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (the "ADMINISTRATOR"), and THE NATIONAL
COLLEGIATE STUDENT LOAN TRUST 20____-____, in its capacity as owner (in such
capacity, the "OWNER").
WHEREAS, the Owner is willing to purchase education loans to borrowers
under the education loan programs listed on SCHEDULE A attached hereto and
others in accordance with the Indenture (collectively, the "STUDENT LOAN
PROGRAMS") upon certain terms and conditions, including but not limited to the
guaranty of the payment of principal and interest by ▇▇▇▇ pursuant to the terms
of the Guaranty Agreements (as hereafter defined) and the deposit of certain
monies with U.S. Bank National Association (the "TRUSTEE"), on behalf of the
Owner, as security for such payment as more fully described herein and in
accordance with the terms and conditions set forth in this Agreement, and the
agreements (the "ACCOUNT SECURITY AGREEMENTS") listed on SCHEDULE B attached
hereto and others in accordance with the Indenture;
WHEREAS, under the terms of the Guaranty Agreements listed on SCHEDULE
B attached hereto and others in accordance with the Indenture between ▇▇▇▇ and
each of the parties (the "LOAN ORIGINATORS") listed on SCHEDULE B attached
hereto and others in accordance with the Indenture, ▇▇▇▇ guaranties the payment
of principal and interest on the Loans in exchange for the payment of certain
Guaranty Fees (as hereinafter defined);
WHEREAS, pursuant to the Student Loan Purchase Agreements listed on
SCHEDULE B attached hereto and others in accordance with the Indenture, between
the Loan Originators and the Owner's predecessor in interest, The First
Marblehead Corporation (the "STUDENT LOAN PURCHASE AGREEMENTS"), the Owner has
agreed to acquire certain Loans;
WHEREAS, Administrator is authorized to act for the Owner in all
matters relating to this Agreement; and
WHEREAS, it is the intention of the Owner and ▇▇▇▇ that this Agreement
shall apply to each Loan that is (i) subject to the Guaranty Agreements and (ii)
purchased by the Owner with funds held under the Indenture (as hereafter
defined).
NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the parties agree as follows:
1. DEFINITIONS. Capitalized terms not otherwise defined in this
Section, in the recitals hereto or elsewhere in this Agreement shall have the
meanings ascribed to such terms
in the Guaranty Agreements, true and complete copies of which are attached as
EXHIBIT 6 to this Agreement. In addition:
(a) "CLOSING DATE" shall mean each of the dates on which the Owner
consummates a transaction to purchase the Loans pursuant to the Student Loan
Purchase Agreements.
(b) "COLLATERAL" shall have the meaning set forth in Section 5.
(c) "ELIGIBLE INVESTMENTS" means the following categories of
securities:
(i) For all purposes:
(A) Cash (insured at all times by the Federal Deposit
Insurance Corporation);
(B) Obligations of, or obligations guaranteed as to
principal and interest by, the U.S. or any agency or instrumentality thereof,
when such obligations are backed by the full faith and credit of the U.S.
government including:
o U.S. treasury obligations
o All direct or fully guaranteed obligations
o Farmers Home Administration
o General Services Administration
o Guaranteed Title XI financing
o Government National Mortgage Association
(GNMA)
o State and Local Government Series
(C) Obligations of government-sponsored agencies that
are not backed by the full faith and credit of the U.S. government including:
o Federal Home Loan Mortgage Corp. (FHLMC)
Debt obligations
o Farm Credit System (formerly: Federal Land
Banks, Federal Intermediate Credit Banks,
and Banks for Cooperatives) o Federal Home
Loan Banks (FHL Banks)
o Federal National Mortgage Association (FNMA)
debt obligations
o Financing Corp. (FICO) debt obligations
o Resolution Funding Corp. (REFCORP) debt
obligations
o U.S. Agency for International Development
(U.S. A.I.D) guaranteed notes
U.S.A.I.D. securities must mature at least four business days before
the appropriate payment date.
(ii) Investments in refunding escrow accounts:
(A) Obligations of any of the following federal
agencies which obligations represent the full faith and credit of the United
States of America, including:
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o Export-Import Bank
o Rural Economic Community Development
Administration
o U.S. Maritime Administration
o Small Business Administration
o U.S. Department of Housing & Urban
Development (PHAs)
o Federal Housing Administration
o Federal Financing Bank
(B) Direct obligations of any of the following
federal agencies which obligations are not fully guaranteed by the full faith
and credit of the U.S.:
o Senior debt obligations issued by the
Federal National Mortgage Association (FNMA)
or Federal Home Loan Mortgage Corporation
(FHLMC)
o Obligations of the Resolution Funding
Corporation (REFCORP)
o Senior debt obligations of the Federal Home
Loan Bank System
o Senior debt obligations of other government
sponsored agencies
(C) U.S. dollar denominated deposit accounts, federal
funds and bankers' acceptances with domestic commercial banks which have a
rating on their short term certificates of deposit on the date of purchase of:
(1) "A-1+" by S&P and (2) either "P-1" by ▇▇▇▇▇'▇ or "F1" by Fitch; and maturing
not more than 360 calendar days after the date of purchase. (Ratings on holding
companies are not considered as the rating of the bank);
(D) Commercial paper that meets the ratings of the
following listed rating agencies at the time of purchase: (1) "A-1+" by S&P and
(2) either "P-1" by ▇▇▇▇▇'▇ or "F1" by Fitch; which matures not more than 270
calendar days after the date of purchase;
(E) Investments in a money market fund rated "AAAm"
or "AAA-m" by S&P and "Aaa" by ▇▇▇▇▇'▇;
(F) Pre-refunded "municipal obligations" which are
defined as follows: any bonds or other obligations of any state of the U.S. or
of any agency, instrumentality or local governmental unit of any such state
which are not callable at the option of the obligor prior to maturity or as to
which irrevocable instructions have been given by the obligor to call on the
date specified in the notice; and
(1) Which are rated, based on an irrevocable
escrow account or fund (the "escrow"), in the highest rating category of (a) S&P
and (b) either ▇▇▇▇▇'▇ or Fitch or any successors thereto; or
(2) (a) Which are fully secured as to
principal and interest and redemption premium, if any, by an escrow consisting
only of cash or obligations described in paragraph (i)(B) above, which escrow
may be applied only to the payment of such principal of
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and interest and redemption premium, if any, on such bonds or other obligations
on the maturity date or dates thereof or the specified redemption date or dates
pursuant to such irrevocable instructions, as appropriate, and (b) which escrow
is sufficient, as verified by a nationally recognized independent certified
public accountant, to pay principal of and interest and redemption premium, if
any, on the bonds or other obligations described in this paragraph on the
maturity date or dates specified in the irrevocable instructions referred to
above, as appropriate;
(G) Any other investment that is generally approved
by ▇▇▇▇▇'▇, S&P and Fitch for the investment of funds held as collateral for
securities rated in the highest investment rating category and that is not:
(1) A financial asset that involves the
Issuer, the Administrator or the beneficial owners of the Issuer in making
decisions other than the decisions inherent in servicing the financial assets
including without limitation any financial asset that includes an option to be
exercised by the Issuer, the Administrator or the beneficial owners of the
Issuer; or
(2) A derivative financial instrument that
involves the Issuer, the Administrator or the beneficial owners of the Issuer in
making decisions including without limitation any derivative financial
instrument that includes an option allowing the Issuer, the Administrator or the
beneficial owners of the Issuer to choose to call or put other financial
instruments; provided that a derivative financial instrument shall be an
Eligible Investment only if it is acquired from proceeds of the issuance of
Notes by the Issuer at the time of such issuance.
(iii) The value of the above investments shall be determined
as follows:
(A) For the purpose of determining the amount in any
fund, all Investment Securities credited to such fund shall be valued at fair
market value. The Trustee shall determine the fair market value based on
accepted industry standards and from accepted industry providers. Accepted
industry providers shall include but are not limited to pricing services
provided by Financial Times Interactive Data Corporation, ▇▇▇▇▇▇▇ ▇▇▇▇▇ & Co.,
Citigroup Global Markets Inc., Bear ▇▇▇▇▇▇▇ & Co. Inc., Deutsche Bank AG, New
York Branch, or ▇▇▇▇▇▇ Brothers;
(B) As to certificates of deposit and bankers'
acceptances: the face amount thereof, plus accrued interest thereon; and
(C) As to any investment not specified above: the
value thereof established by prior agreement between the Issuer and the Trustee.
(d) "EXISTING PLEDGED ACCOUNT" means the Pledged Account, if any,
created pursuant to the Account Security Agreements and named therein the
"Pledged Account."
(e) "GUARANTY AGREEMENTS" shall mean each of the Guaranty Agreements
between each of the Loan Originators and ▇▇▇▇, and any amendments or
modifications thereto, as set forth on SCHEDULE B attached hereto and others in
accordance with the Indenture.
(f) "GUARANTY CLAIMS" shall mean a claim made by or on behalf of the
Owner for payment by ▇▇▇▇ following a Guaranty Event.
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(g) "GUARANTY FEES" shall mean, collectively, all of the fees payable
to ▇▇▇▇ for the guarantee of a Loan as described in each of the Guaranty
Agreements.
(h) "INDENTURE" means the Indenture dated as of ____________, 20____,
by and between the Owner and the Trustee, as may be amended or supplemented from
time to time.
(i) "INTANGIBLES" shall have the meaning set forth in Section 5(a)(ii).
(j) "QUARTERLY DISTRIBUTION DATE" shall have the meaning set forth in
the Indenture.
(k) "RECOVERIES" shall mean and include: (i) any and all cash, checks,
drafts, orders and all other instruments for the payment of money received by
▇▇▇▇ from or on behalf of Borrowers in payment of principal of, interest on,
late fees with respect to, and costs of collecting defaulted Loans with respect
to which ▇▇▇▇ has paid, in full, Guaranty Claims, from funds in the Pledged
Account, and the proceeds of all of the foregoing, (ii) any amount received by
▇▇▇▇ upon the sale or other transfer of defaulted Loans with respect to which
▇▇▇▇ has paid, in full, Guaranty Claims (including the sale of such Loans to the
Owner as provided in each of the Guaranty Agreements or the sale of the right to
collect such Loans or other similar rights with respect thereto), and (iii) in
connection with any pledge or assignment of defaulted Loans (or rights with
respect thereto) to secure a loan to ▇▇▇▇, the amount of such loan. In all
cases, "Recoveries" shall be computed net of TERI's Costs of Collection. TERI's
"COSTS OF COLLECTION" for purposes of this Agreement shall mean all fees and
expenses paid to third party collectors and attorneys, and, to cover TERI's
internal costs, an amount equal to __________ percent (_____%) of the amount
recovered (excluding amounts recovered upon the sale of loans to the Owner as
provided in each of the Guaranty Agreements).
(l) "SECURED OBLIGATIONS" shall have the meaning set forth in Section
6.
(m) "▇▇▇▇ GUARANTEE FEE ENTITLEMENT" means a portion of Guaranty Fees
equal to __________ percent (_____%) of the principal amount of a Loan, payable
in accordance with each of the Guaranty Agreements.
2. CREATION AND FUNDING OF THE PLEDGED ACCOUNT. Upon the execution of
this Agreement, the Owner shall establish with the Trustee pursuant to the
Indenture an account (the "PLEDGED ACCOUNT") for the purpose of depositing upon
receipt portions of the Guaranty Fees, Recoveries and earnings as provided in
this Section 2. The Pledged Account shall be funded (a) (i) by transfer of (A)
all amounts held on each Closing Date in the Existing Pledged Account that
relate to the Loans being purchased on such Closing Date, determined as set
forth in each of the Account Security Agreements, (b) by ▇▇▇▇ with all Guaranty
Fees payable on each Closing Date with respect to the Loans being purchased, and
(c) by ▇▇▇▇ with all Recoveries with respect to Loans on which ▇▇▇▇ has paid
Guaranty Claims, and earnings on the Pledged Account, all of which shall be
pledged by ▇▇▇▇ to the Owner under the terms of this Agreement. ▇▇▇▇ hereby
irrevocably directs the Owner to deposit the following amounts into the Pledged
Account:
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(a) Any and all Guaranty Fees previously paid by the Loan Originators
and currently held by the Trustee in the Existing Pledged Account created under
each of the Account Security Agreements with respect to Loans purchased on any
Closing Date as set forth in each of the Account Security Agreements;
(b) Any and all additional Guaranty Fees with respect to such Loans
purchased by the Owner, which fees will be deposited into the Pledged Account on
each Closing Date; and
(c) All Recoveries, which Recoveries shall be remitted by or on behalf
of ▇▇▇▇ to the Trustee on the 15th day of each month, for Recoveries received
during the preceding month.
Any amounts remitted to the Trustee for deposit into the Pledged Account shall
be accompanied by a notice in the form of EXHIBIT 2.
3. PLEDGED ACCOUNT INVESTMENT AND MAINTENANCE.
(a) The Owner shall withdraw from the Pledged Account and deposit into
the Reserve Fund of the Indenture any amounts owed by ▇▇▇▇ under each of the
Guaranty Agreements for Guaranty Claims as provided in Section 3(d)(i) hereof.
The Owner understands and agrees that ▇▇▇▇ shall be required to pay any such
claim amounts out of TERI's general reserves and other assets only to the extent
that and for so long as the Pledged Account is without sufficient funds or is
otherwise unavailable to promptly pay whatever amounts are then due and payable
under each of the Guaranty Agreements. Notwithstanding the foregoing, while
there is a default by ▇▇▇▇ under Section 8 hereof continuing, the provisions of
Section 9 hereof shall apply.
(b) Prior to the occurrence of a default by ▇▇▇▇ under Section 8
hereof, ▇▇▇▇ may direct the Owner to invest amounts held in the Pledged Account
in one or more Eligible Investments. If a default under Section 8 occurs and is
continuing, the Administrator shall have the sole right to direct investment of
the Pledged Account, but such investments shall be limited to Eligible
Investments.
(c) No interest, dividends, distributions or other earnings of whatever
nature which are paid and derived from the Pledged Account (collectively,
"EARNINGS") shall be withdrawn or paid to the Owner or ▇▇▇▇ or any other person
or entity unless pursuant to the provisions of Section 3(d). All Earnings shall
be fully, immediately and completely reinvested in the Pledged Account. Any
other provisions of this Agreement to the contrary (either expressly or by
implication) notwithstanding, all Earnings net of losses shall be credited to
and deemed income of ▇▇▇▇ and not of the Owner, and shall be so treated by ▇▇▇▇.
(d) Withdrawals and disbursements from the Pledged Account shall be
made only in accordance with the following provisions:
(i) Upon receipt by the Owner of a Payment of Guaranty Claims
Direction Letter, substantially in the form of EXHIBIT 1 (and, after the
occurrence of a default
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under Section 8, whether or not such a Direction Letter is received), the Owner
shall withdraw from the Pledged Account and deposit in the Revenue Fund of the
Indenture the full amount of any valid Guaranty Claims made in accordance with
each of the Guaranty Agreements for defaulted Loans.
(ii) In the event TERI's income on the Pledged Account should
become subject to federal income taxation or the income from the Pledged Account
should become subject to excise tax under section 4940 of the Internal Revenue
Code of 1986, as amended, ▇▇▇▇ shall be entitled to the release of Earnings from
the Pledged Account equal to the taxes actually paid by ▇▇▇▇ with respect to the
income on the Pledged Account. ▇▇▇▇ shall provide the Administrator and the
Trustee with a written request substantially in form of EXHIBIT 5 attached
hereto, for any such withdrawal, which request shall be accompanied by
documentation as to the amounts to be withdrawn ("WITHDRAWAL REQUEST"). Not
later than (15) days following receipt by the Administrator of a Withdrawal
Request, the Administrator may either (A) notify ▇▇▇▇ of any objection to such
Withdrawal Request along with reasons for such objection or (B) request any
further information or documentation relating to such request. If the
Administrator does not object or request further information from ▇▇▇▇ within
such (15) day period, the Administrator shall be deemed to have consented to the
Withdrawal Request, and the Administrator shall thereafter promptly cause the
Trustee to withdraw the requested funds from the Pledged Account. If the
Administrator objects to any Withdrawal Request, the Administrator shall deny
the request and provide ▇▇▇▇ with a written statement of the Administrator's
reasons for denial, which denial must be reasonably based on the requirements
set forth in this Section 3(d).
4. EXCESS FUNDS IN THE PLEDGED ACCOUNT. If on any Quarterly
Distribution Date under the Indenture, the product of (a) the aggregate
outstanding principal balance of and earned interest on Loans held by or pledged
to the Trustee, multiplied by (b) a factor equal to __________ (_____) (the
"STRESS FACTOR") is less than the balance in the Pledged Account, and, if no
default exists hereunder or under each of the Guaranty Agreements, the
Administrator shall cause the Trustee to pay to ▇▇▇▇ the amount by which the
balance in the Pledged Account exceeds such product. The parties agree that the
approval of the Stress Factor by the rating agencies is dependent upon the types
of Loans purchased by the Owner at each closing under the Indenture.
5. SECURITY INTEREST. ▇▇▇▇ hereby pledges, assigns and sets over to the
Owner, as security for payment by ▇▇▇▇ of the Secured Obligations (as
hereinafter defined), all of TERI's right, title and interest in and to (a) the
Pledged Account and all amounts on deposit or to be deposited therein as
described in Section 2 of this Agreement, including without limitation (i) any
and all Guaranty Fees previously paid by Loan Originators and currently held by
the Trustee in the Existing Pledged Account created under each of the Account
Security Agreements with respect to Loans purchased on any Closing Date as set
forth in each of the Security Agreements; (ii) any and all additional Guaranty
Fees with respect to such Loans purchased by the Owner, which fees will be
deposited into the Pledged Account on each Closing Date; and (iii) all
Recoveries, which Recoveries shall be remitted by or on behalf of ▇▇▇▇ to the
Trustee on the 15th day of each month, for Recoveries received during the
preceding month, and (b) TERI's right to receive all Earnings. The foregoing
shall not be
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deemed to include a grant of security interest in defaulted Loans. In
furtherance thereof, ▇▇▇▇ hereby grants to the Owner (and its assigns) a first
priority security interest in all of TERI's right, title and interest in and to
the following, to the extent they relate to Loans purchased by the Owner:
(a) All personal property comprising and/or contained in the Pledged
Account, as provided in this Agreement, both tangible and intangible, whether
now owned or hereafter acquired by ▇▇▇▇ and wheresoever located, including
without limitation:
(i) All contract rights, claims, instruments, notes and
accounts, whether now existing or hereafter arising, including, without
limitation, all of the same evidencing or representing indebtedness due or to
become due to ▇▇▇▇ (all hereinafter called the "ACCOUNTS");
(ii) All funds and investments thereof, whether in the form of
certificates of deposit, repurchase agreements, U.S. Treasury Bills, U.S.
Treasury Notes, investment grade commercial paper, U.S. Treasury Bonds, Federal
agency notes or other investments, securities (whether certificated or
uncertificated and specifically including any securities which are purchased
through and for which records are maintained on a book entry system through any
financial intermediary (as defined in ss. 8-313 of the Uniform Commercial
Code)), payment intangibles and general intangibles, whether now existing or
hereafter arising and wheresoever located, or otherwise (all hereinafter called
the "INTANGIBLES");
(iii) All right, title and interest of ▇▇▇▇ in or to all
instruments and documents covering or relating to the above described property,
including but not limited to, all books, records, computer printouts, tapes,
disks, ledger sheets, files and other data (all such instruments and documents
being called the "RELATED DOCUMENTS");
(iv) All interest, dividends and/or other earnings of any kind
which are paid with respect to or derived from the Pledged Account, and all
proceeds of any of the foregoing, and the present and continuing right to make
claim for, collect, receive and receipt for, any and all such interest,
dividends and/or other earnings; and
(v) All the proceeds of all of the foregoing;
(b) All contract and other rights of ▇▇▇▇ to receive payment of
Guaranty Fees, other than the ▇▇▇▇ Guarantee Fee Entitlement, from the Owner
under each of the Guaranty Agreements; TERI's rights to receive Subsequent
Guarantee Fees from the Owner pursuant to such section, and any separate
undertaking or agreement by the Owner to pay such Subsequent Guarantee Fees;
(c) All Recoveries and all rights of ▇▇▇▇ to receive or collect
Recoveries; and
(d) All proceeds of the foregoing.
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All of the foregoing property in which the Owner has been granted a
security interest is herein collectively referred to as "COLLATERAL." It is
expressly understood and agreed that this security interest and assignment shall
automatically attach to any and all future deposits to, earnings from, and
proceeds of the Pledged Account immediately upon deposit or accrual, and all
Guaranty Fees and Recoveries immediately upon the receipt thereof, without the
making or doing of any further act or thing whatsoever. ▇▇▇▇ shall promptly take
all further action, and execute and deliver to the Owner such other documents,
as may be requested from time to time by the Owner to create, evidence, maintain
and effect the Owner's security interest in the Pledged Account and the other
rights pledged hereunder.
6. SECURED OBLIGATIONS. The security interest of the Owner under this
Agreement secures (a) the payment and performance of all indebtedness,
obligations and liabilities of ▇▇▇▇ arising at any time, now or in the future,
to the Owner (or its assignees), pursuant to each of the Guaranty Agreements;
(b) performance by ▇▇▇▇ of the agreements set forth in this Agreement; (c) all
payments made or expenses incurred by the Owner (or its assignees), including,
without limitation, reasonable attorney's fees and legal expenses, in the
exercise, preservation or enforcement of any of the rights, powers or remedies
of the Owner (or its assignees), or in the enforcement of the obligations of
▇▇▇▇, under this Agreement or each of the Guaranty Agreements (whether or not
paid or incurred in the context of a state or federal bankruptcy, insolvency, or
reorganization proceeding); and (d) any renewals, continuations or extensions of
any of the foregoing (all of which are collectively referred to as the "SECURED
OBLIGATIONS").
7. RESTRICTIONS ON THE PLEDGED ACCOUNT. ▇▇▇▇ shall not (except as
provided in Sections 3(d)(ii) and (4)) be paid by the Owner any funds from or
further assign, pledge, or hypothecate the Pledged Account or any portion of the
Pledged Account to any individual, person, entity or other third party without
the express prior written consent of the Owner. Payments to ▇▇▇▇ will be by wire
transfer unless ▇▇▇▇ requests, in writing, another reasonable form of payment.
8. DEFAULT. ▇▇▇▇ shall be in default of this Agreement if ▇▇▇▇ fails to
remit to the Owner from the Pledged Account or otherwise, in accordance with the
terms and provisions of the Guaranty Agreements, the principal balance
(including capitalized fees and interest) and accrued interest and late fees on
any Loan as to which a Guaranty Event (as defined in each of the Guaranty
Agreements) has occurred and as to which the conditions set forth in each of the
Guaranty Agreements to payment of a Guaranty Claim have been satisfied, and if
such failure continues for a period of thirty (30) days. Either ▇▇▇▇ or the
Owner shall be in default of this Agreement if (a) any representation, warranty,
or statement made by such party in or pursuant to this Agreement or each of the
Guaranty Agreements is found to be false or erroneous in any material respect,
or (b) such party shall fail or omit to perform or observe any material covenant
or agreement made by it in this Agreement or each of the Guaranty Agreements,
and if such circumstance, failure or omission (if susceptible of cure) remains
uncured for thirty (30) days. Upon the occurrence of an event of default by
▇▇▇▇, and while such default is continuing, the Owner shall cease disbursing any
funds at the request of ▇▇▇▇ except to pay Guaranty Claims.
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9. REMEDIES UPON DEFAULT. The Owner shall have all of the rights and
remedies of a secured party under the Massachusetts Uniform Commercial Code (as
the same may be amended from time to time), as well as all rights and remedies
provided by any other applicable law, at law, or in equity. Without limiting the
generality of the foregoing, the Administrator shall also have the right, during
the term of this Agreement, to do any or all of the following upon a default and
until any such default is cured:
(a) ACCELERATION. Without any notice or demand, the Administrator may
declare any or all Secured Obligations then in default to be immediately due and
payable.
(b) POSSESSION. Without notice, demand, or hearing, any right to which
is hereby waived by ▇▇▇▇, the Administrator shall have full power and authority
to hold, sequester, set-off or withdraw any and all funds from the Pledged
Account and to (i) direct such funds for application to any Loan as to which a
Guarantee Event has occurred and ▇▇▇▇ has failed to remit the principal balance
(including capitalized fees and interest) and accrued interest and late fees
thereon in accordance with the terms and conditions of each of the Guaranty
Agreements or (ii) hold the funds in the Pledged Account without making any
disbursements of any kind to ▇▇▇▇ as otherwise provided in this Agreement, and
to apply the funds to any Loan if and when a Guarantee Event occurs and ▇▇▇▇
fails to promptly remit to the Owner the unpaid principal balance (including
capitalized fees and interest) and accrued interest and late fees thereon in
accordance with the conditions of each of the Guaranty Agreements.
(c) COLLECTION OF ACCOUNTS.
(i) ▇▇▇▇ hereby constitutes and appoints the Administrator
(and upon assignment hereof, the Trustee) its true and lawful attorney (which
appointment is coupled with an interest), with full power of substitution,
either in the Administrator's own name or in the name of ▇▇▇▇, to ask for,
demand, ▇▇▇ for, collect, receive, receipt and give acquittance for, any and all
moneys due or to become due to ▇▇▇▇ that are part of the Collateral; to endorse
checks, drafts, orders and other instruments for the payment of money payable to
▇▇▇▇ on account thereof, to settle, compromise, prosecute, or defend any action,
claim, or proceeding with respect thereto; and to sell, assign, pledge, transfer
and make any agreement respecting, or otherwise deal with, the same.
(ii) ▇▇▇▇ agrees that all Recoveries shall be held by the
Owner to whatever extent may be necessary to facilitate full and complete
payment of all amounts owed under each of the Guaranty Agreements. All such
Recoveries received by ▇▇▇▇ shall be remitted to the Trustee (properly endorsed
for collection where required), not later than the next Business Day, and
accompanied by EXHIBIT 2 and deposited in the Pledged Account, for the payment
of all of the Secured Obligations then in default. ▇▇▇▇ agrees not to commingle
any such collections or proceeds with any of its other funds or property and
agrees to hold the same upon an express trust for the Owner until deposited in
the Pledged Account, as aforesaid.
(iii) The Administrator agrees to provide notice to ▇▇▇▇ of
the Administrator's or Owner's exercise of any of its rights under this Section
9(c).
10
(d) TRANSFER OF INTANGIBLES. The Administrator shall have the right to
take possession of any agreement or other document evidencing any of the
Intangibles, and may apply for or seek, on behalf of and as attorney-in-fact for
▇▇▇▇, any necessary consent to the assignment, transfer, conveyance, sale,
renewal, reissuance or other disposition of the same, and ▇▇▇▇ shall cooperate
fully with the Administrator in doing so and shall take all actions reasonably
requested by the Administrator in furtherance thereof. ▇▇▇▇ hereby constitutes
and appoints the Administrator its true and lawful attorney (which appointment
is coupled with an interest) with full power of substitution, either in the
Administrator's own name or in the name of ▇▇▇▇, to assign, transfer and convey,
subject to all requirements of law, any and all of TERI's rights in and to any
of the Intangibles.
(e) DISPOSITION. The Administrator may assign, transfer, convey, any or
all of the Collateral, by public or private sale subject to TERI's rights to
retain a copy of each Related Document now or in the future in TERI's
possession. The Administrator shall provide ▇▇▇▇ with reasonable written notice
of the time and place of any such sale.
(f) PROCEEDS. All proceeds from the sale or other disposition of
Collateral by the Administrator under this Section 9 of this Agreement, and all
other moneys received by the Administrator pursuant to the terms of this
Agreement shall be applied as follows:
(i) First, to the payment of all expenses incurred by the
Administrator in connection with this Agreement or the exercise of any right or
remedy hereunder, or any sale or disposition, including, but not limited to the
expenses of taking, advertising, processing, preparing and storing the
Collateral to be sold, all court costs and the Administrator's reasonable legal
fees in connection therewith;
(ii) Second, to the payment of valid Guaranty Claims in
accordance with the terms thereof in the order in which a complete claim
(including all required documentation) is received, treating all claims received
the same day as received at the same time (if there are not sufficient funds in
the Pledged Account to pay all claims payable therefrom received on a given day,
all such claims shall be paid in part, pro rata, from the Pledged Account as
directed by the Administrator); and
(iii) Third, any remainder to be held pursuant to the terms of
this Agreement as continuing security for TERI's payment of the remaining
Secured Obligations.
The Administrator shall apply any such proceeds, monies, or balances in
accordance with this Agreement promptly upon its receipt of the same. In respect
of any application pursuant to clause (ii) above, such proceeds, monies, or
balances shall be applied by the Administrator to discharge in whole or in part
any unpaid Secured Obligation, notwithstanding any manifestation of an intent to
the contrary expressed in writing or otherwise by ▇▇▇▇ at any time. Upon any
sale of Collateral by the Administrator (whether pursuant to a power of sale
granted by a statute or under a judicial proceeding), the receipt of the
Administrator or of the officer making the sale shall be a sufficient discharge
to the purchaser or purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the
purchase money paid over to the
11
Administrator or such officer, or be answerable in any way for the
misapplication thereof. Notwithstanding the sale or other disposition of any
Collateral by the Administrator hereunder, ▇▇▇▇ shall remain liable for any
deficiency. Any Loan with respect to which the Owner receives payment in full
hereunder will forthwith be transferred to ▇▇▇▇ on the terms and conditions set
forth in the Guaranty Agreements.
10. REMEDIES CUMULATIVE. All rights, remedies, or powers conferred upon
the Owner herein or by law shall be cumulative and concurrent at the option of
the Administrator, and the Administrator may, to whatever extent is reasonably
necessary to cure any default, foreclose or exercise the power of sale or any
other remedy available to it successively upon any default or upon successive
defaults hereunder without the necessity of declaring all sums secured hereby to
be due and payable. Upon any such occasion, the Administrator shall be
authorized to sell or dispose of all or any such part of the Collateral as
provided in this Agreement or pursuant to the Indenture and as permitted by law.
The remaining Collateral shall continue as security for any other sums remaining
due after such sale, lease, or disposition or thereafter to become due or
payable on any of the Secured Obligations.
11. PLEDGE BY THE OWNER; ROLE OF THE ADMINISTRATOR.
(a) ▇▇▇▇ acknowledges that the Owner has pledged all of its right,
title and interest under this Agreement and its interest in the Pledged Account
as collateral security to the Trustee pursuant to the Indenture. Pursuant to
such pledge, all rights of the Owner hereunder, subject to the limitations and
obligations of this Agreement, may be exercised by the Trustee, pursuant to the
terms of the Indenture. Subject to the terms and limitations of this Agreement,
the Administrator, on the Owner's behalf, in accordance with the Indenture,
shall request that the Trustee exercise the Owner's rights and obligations
hereunder, including, without limitation:
(i) The withdrawal of funds from the Pledged Account to pay
the Trustee, as assignee of the Loans, with respect to a Guaranty Claim pursuant
to Section 3(d)(i) hereof;
(ii) The withdrawal of funds pursuant to Section 3(d)(ii)
hereof;
(iii) The investment of funds in the Pledged Account in
Eligible Investments as directed by ▇▇▇▇ from time to time;
(iv) The exercise of the remedies of the Owner on default by
▇▇▇▇ under Section 9.
(b) The Owner hereby directs ▇▇▇▇ to pay all sums intended to be placed
in the Pledged Account, including, without limitation, all future Recoveries,
directly to the Trustee. The Pledged Account shall be maintained and funds held
therein shall be invested by the Trustee in Eligible Investments pursuant to and
in accordance with the Indenture. Funds held in the Pledged Account in the form
of bank deposits shall be deposited only with institutions that are federally
insured.
12
(c) The Trustee and the holders of the notes authenticated and
delivered pursuant to the Indenture, are intended third-party beneficiaries of
this Agreement, with rights to enforce the Owner's interests in the same. Such
third-party beneficiaries are not parties hereto and incur no liabilities
hereunder.
(d) The Administrator has been appointed to act for the Owner in
connection with the transactions contemplated by the Indenture. The
Administrator has the power and authority to take any action and give any notice
required or permitted by the Owner hereunder and ▇▇▇▇ may deal with
Administrator as if it were dealing with the Owner. Any notice required to be
given to the Owner by ▇▇▇▇ shall also be given to Administrator. The
Administrator will request instructions from the Indenture Trustee on behalf of
the Noteholders for any non-ministerial action that the Administrator is
required to take under this Agreement.
12. POSSESSION OF COLLATERAL. Throughout the term of this Agreement,
possession of the Collateral shall be maintained by the Trustee, or its agent or
nominee (if the Trustee so chooses from time to time), as necessary and
appropriate to perfect the Owner's, and, while the Indenture is in effect, the
Trustee's security interest therein as provided in, and subject to the terms of,
this Agreement. Upon termination of the Indenture and satisfaction in full of
all debt secured thereby and release of the Pledged Account to the Owner, the
Administrator may designate an alternative collateral agent to hold the Pledged
Account.
13. TERMINATION OF SECURITY INTERESTS. This Agreement and the security
interests under this Agreement shall terminate when all amounts due and owing on
account of, and all obligations and liabilities of ▇▇▇▇ in respect of, the
Secured Obligations shall have been fully performed, satisfied and paid as
provided in this Agreement and the Guaranty Agreements. At such time, the
Administrator shall promptly reassign and deliver to ▇▇▇▇, without recourse or
representation, against TERI's receipt, all Collateral then held by the Owner or
anyone claiming by, through or under the Owner. ▇▇▇▇ shall execute and if
necessary deliver to the Administrator for execution, and the Administrator
shall promptly cause to be filed at the Owner's expense, termination statements
in respect of any financing statements filed under this Agreement. The
Administrator agrees to fulfill the Owner's obligations to file such termination
statements at its own cost and expense. The security interests hereunder shall
terminate as to all Collateral lawfully withdrawn by or paid to ▇▇▇▇ hereunder,
upon the occurrence of such withdrawal or payment.
14. REPRESENTATIONS AND WARRANTIES.
(a) Each party, with respect to itself, represents and warrants that:
(i) The making and performance of this Agreement and the
activities contemplated hereby have been duly authorized by all necessary action
and do not and will not:
13
(A) Violate any provision of law, or any regulation,
order, decree, writ or injunction, or any provision of such party's charter,
bylaws, or any other organizing document; or
(B) Violate or result in the breach of, or constitute
a default or require any consent under, any agreement or instrument by which it
or any of its property may be bound or affected.
(ii) This Agreement is the legal, valid and binding obligation
of such party, enforceable in accordance with the terms hereof.
(iii) There is no pending or threatened litigation that would,
if resolved adversely to such party, adversely impact such party's ability to
perform any of its obligations under this Agreement or each of the Guaranty
Agreements.
(b) ▇▇▇▇ represents and warrants that:
(i) Except for the security interests of the Owner created
under this Agreement, ▇▇▇▇ is and will be the owner of the Collateral, whenever
acquired or arising, free and clear of all liens, security interests, claims,
encumbrances, charges, set-offs, defenses and counterclaims;
(ii) This Agreement creates a valid and continuing security
interest (as defined in the applicable Uniform Commercial Code ("UCC") in effect
in the State of Massachusetts) in the Collateral in favor of the Owner, which
security interest is prior to all other liens, charges, security interests,
mortgages or other encumbrances, and is enforceable as such as against creditors
of and purchasers from ▇▇▇▇;
(iii) The Collateral constitutes a "deposit account" or
"investment property" within the meaning of the applicable UCC, except to the
extent that the Collateral constitutes Recoveries, in which case, the Collateral
is "payment intangibles" and cash.
(iv) ▇▇▇▇ has caused or will have caused, within ten 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 Collateral granted to the Owner hereunder.
(v) Other than the security interest granted to the Owner
pursuant to this Agreement, ▇▇▇▇ has not pledged, assigned, sold, granted a
security interest in, or otherwise conveyed any of the Collateral. ▇▇▇▇ has not
authorized the filing of and is not aware of any financing statements against
▇▇▇▇ that include a description of collateral covering the Collateral other than
any financing statement relating to the security interest granted to the Owner
hereunder or that has been terminated. ▇▇▇▇ is not aware of any judgment or tax
lien filings against ▇▇▇▇.
14
The foregoing representations and warranties in this Section 14(b) shall
continue in full force and effect until termination of this Agreement.
(c) The foregoing representations and warranties are subject to (i) the
exercise of judicial discretion in accordance with the general principles of
equity; (ii) the valid exercise of the police powers of the several states of
the United States of America and of the constitutional powers of the United
States of America and (iii) bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditor's rights generally.
15. COVENANTS OF ▇▇▇▇. ▇▇▇▇ agrees and covenants with the Owner as
follows:
(a) MAINTENANCE AND USE OF COLLATERAL. ▇▇▇▇ shall not permit the
Collateral to be used in violation of any of the Guaranty Agreements or this
Agreement.
(b) TAXES. ▇▇▇▇ shall, if so obligated, pay and discharge when due all
taxes, assessments, license or permit fees, levies and other charges upon the
Collateral, and ▇▇▇▇ shall, if so obligated, also pay and discharge when due all
other taxes, levies, or assessments relating to its business which, if unpaid,
might give rise to any penalty, security interest, lien, charge, levy,
assessment, or encumbrance in, on or against the Collateral. The Collateral and
all income and/or proceeds of the Collateral shall be, and be treated by ▇▇▇▇ as
being, the property of ▇▇▇▇, subject to the pledge and security interest created
hereunder, and ▇▇▇▇ shall report the Collateral and all such proceeds as its
sole property until, unless and except to the extent any of the Collateral is
paid and transferred pursuant to each of the Guaranty Agreements and this
Agreement.
(c) NO ENCUMBRANCE. Except as otherwise expressly permitted in this
Agreement, ▇▇▇▇ shall not sell, assign, transfer, pledge, hypothecate, or
otherwise dispose of or encumber any of the Collateral or any interest therein
until all of the Secured Obligations are fully satisfied. ▇▇▇▇ shall protect and
defend the Collateral from and against any and all claims, demands, or legal
proceedings brought or asserted by any party other than the Trustee.
(d) MAINTENANCE OF SECURITY INTEREST. ▇▇▇▇ agrees that it shall do all
things necessary to preserve and maintain the security interests of the Owner
under this Agreement and Indenture as a first priority lien in the Collateral
and shall not permit the creation of any other lien, charge, security interest,
or encumbrance in the Collateral. ▇▇▇▇ agrees that it shall execute and if
necessary deliver to the Trustee for execution, and the Administrator agrees to
file or record (at its own cost and expense), such notices, financing
statements, continuation statements, certificates of title and other documents,
and ▇▇▇▇ shall deliver to the Trustee upon request therefor such securities,
agreements, writings, documents, certificates, instruments, or other
intangibles, as the Trustee reasonably deems necessary from time to time to
perfect and maintain the perfection of the security interests of the Trustee
under this Agreement. The Trustee or the Administrator shall have the right to
file this Agreement and any financing statement reflecting the content of this
Agreement for record in any governmental office.
15
(e) RECORDS, STATEMENTS AND RELATED DOCUMENTS. ▇▇▇▇ agrees:
(i) When reasonably requested to do so by the Administrator,
to prepare and deliver to the Administrator a schedule in form satisfactory to
the Administrator, certified by an authorized officer of ▇▇▇▇, listing all
Collateral and the location thereof; and
(ii) To keep accurate and complete records at all times in
respect of the Collateral and to deliver to the Administrator copies of such
records and such other information regarding the Collateral which the
Administrator may reasonably request.
(f) LOCATION. The principal office of ▇▇▇▇ is located at ▇▇ ▇▇. ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, and all books of account and records
relating to the collateral and TERI's business are located at TERI's principal
office. ▇▇▇▇ shall not, without giving the Administrator at least ten (10) days
prior written notice, change the location of any of the Collateral or the
location at which it does business, including, without limitation, the location
at which any books of account or records relating to the Collateral and TERI's
business are kept.
(g) NOTICE. ▇▇▇▇ shall promptly notify the Owner of any change in
TERI's name or its jurisdiction of organization or any physical loss,
destruction, or damage to any material portion of the Collateral. ▇▇▇▇ shall
also promptly notify the Owner of any default hereunder. In the event of a name
change or change in its jurisdiction of organization, ▇▇▇▇ shall take such
actions, if any, as shall be necessary to maintain the security interests of the
Owner hereunder.
(h) FURTHER INFORMATION. ▇▇▇▇ shall execute and deliver, or cause to be
executed and delivered, to the Trustee (and to any other financial institution
holding the Pledged Account), in a form satisfactory to the Trustee (or such
other institution), TERI's certification of its tax identification number and
such other documents as the Trustee shall reasonably request to perform its
obligations hereunder.
(i) NON-PETITION. ▇▇▇▇ shall not at any time prior to one year and one
day after all outstanding obligations of the Trust are paid under the Indenture
institute against the Owner any bankruptcy proceeding under the Bankruptcy Code
or any state bankruptcy or similar law in connection with any obligations of the
Owner under this Agreement. The Administrator shall not at any time prior to one
year and one day after all outstanding obligations of the Trust are paid under
the Indenture institute against the Owner any bankruptcy proceeding under the
Bankruptcy Code or any state bankruptcy or similar law in connection with any
obligations of the Owner under this Agreement.
16. WAIVER. No delays or omissions by any party hereto in exercising or
enforcing any of its respective rights, remedies, powers, privileges and
discretions ("RIGHTS AND REMEDIES") shall operate as or constitute a waiver of
any such Rights and Remedies. No waiver by a party of any default under this
Agreement or each of the Guaranty Agreements shall operate as a waiver of any
other default under this Agreement. No single or partial exercise by a party of
any of its Rights and Remedies shall preclude the other of further
16
exercise of such Rights and Remedies. No waiver or modification of a party's
Rights and Remedies on any one occasion shall be deemed a waiver on any
subsequent occasion, nor shall it be deemed a continuing waiver. All Rights and
Remedies shall be cumulative and not alternative or exclusive, and a party may
exercise any such Rights and Remedies at such time or times and in such order of
preference as that party in its sole discretion may determine.
17. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which shall
together be deemed a single agreement.
18. CONFIDENTIALITY. The parties acknowledge that this Agreement
contains confidential information and agree not to disclose any of the terms and
conditions relating to this Agreement and the Pledged Account without the prior
express written consent of the others. The provisions of the foregoing sentence
to the contrary notwithstanding, any such information may be disclosed (a) to
any employees, officers, directors or representatives of the parties to effect
the purpose of the Student Loan Program; (b) by ▇▇▇▇ and the Administrator to
the affiliates and agents of either of them, and other third parties, to
effectuate this Agreement, provided that such parties are under a corresponding
written obligation to maintain the confidentiality of the Owner's information;
and (c) to the attorneys and accountants of the parties on a confidential basis.
This provision shall, further, not be construed to prohibit the disclosure of
any information relating to this Agreement (i) that is now or in the future
becomes public information, (ii) as may be required by applicable law or this
Agreement, each of the Guaranty Agreements or the Indenture, (iii) to the
underwriters and rating agencies, their employees, trustees and attorneys and to
such others as the Administrator may determine necessary (including regulators
and potential investors in a private or public offering) in connection with the
sale, securitization or other financing of any of the Loans, (iv) in any private
placement memorandum in connection with the sale, securitization or other
financing of any of the Loans, and (v) as necessary to perfect or enforce the
security interest in the Collateral granted hereunder. Nothing in this Agreement
shall limit or restrict ▇▇▇▇, the Administrator, or any affiliate of the
Administrator (A) in their exchange and use of information as among them, to the
extent such exchange or use is governed by other agreements; or (B) from using,
manipulating, sharing and disclosing Loan information that has been
de-identified so that the identity of the borrower, the lender, or the holder of
a Loan (including but not limited to the Owner and Trustee) cannot be
determined.
19. CHOICE OF LAW. This Agreement shall be governed and construed in
accordance with Massachusetts law, without regard to principles of conflict of
laws.
20. SEVERABILITY. If at any time one or more provisions of this
Agreement is or becomes invalid, illegal or unenforceable in whole or in part,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.
21. ASSIGNMENT. This Agreement may not be assigned by any party without
the others' prior express written consent. Pursuant to Section 11, this
Agreement and the
17
Owner's rights hereunder may be assigned by the Owner as collateral security to
the Trustee, and the Trustee and certain other persons are intended
beneficiaries of this Agreement.
22. HEADINGS. The section headings used in this Agreement are for
convenience of reference only and are not to affect the construction or to be
taken into consideration in interpreting this Agreement.
23. AMENDMENT. This Agreement may be amended or modified only by the
written agreement of ▇▇▇▇, the Owner, the Administrator and while the Indenture
remains in effect, the prior written consent of the Trustee.
24. NOTICES. All notices under this Agreement shall be sent by any
means requiring receipt signature, or if by facsimile confirmed by first-class
mail, postage or other delivery charge prepaid to
▇▇▇▇:
-----
The Education Resources Institute, Inc.
▇▇ ▇▇. ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: President
THE TRUSTEE:
-----------
U.S. Bank National Association
Corporate Trust Services-SFS
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
THE ADMINISTRATOR OR THE OWNER:
------------------------------
First Marblehead Data Services, Inc.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: _____________________
with a copy to:
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq.
▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Any party may, by notice to the other parties in accordance with this
section, designate a different address for notices thereafter under this
Agreement.
18
25. NON-BUSINESS DAYS. Any action required or permitted to be taken or
done hereunder on a day which is not a business day in Boston, Massachusetts may
be taken or done on the next business day with the same effect as if taken or
done on such non-business day.
26. ROLE OF THE OWNER TRUSTEE. It is expressly understood and agreed by
the parties hereto that (a) this Agreement is executed and delivered by
_______________ ("[OWNER TRUSTEE]"), not individually or personally but solely
as trustee of the Owner in the exercise of the powers and authority conferred
and vested in it, (b) each of the representations, undertakings and agreements
herein made on the part of the Owner is made and intended not as personal
representations, undertakings and agreements by [OWNER TRUSTEE] but is made and
intended for the purpose for binding only the Owner, (c) nothing herein
contained shall be construed as creating any liability on [OWNER TRUSTEE],
individually or personally, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereto and by any Person claiming by, through or under the parties
hereto and (d) under no circumstances shall [OWNER TRUSTEE] be personally liable
for the payment of any indebtedness or expenses of the Owner or be liable for
the breach or failure of any obligation, representation, warranty or covenant
made or undertaken by the Owner under this Agreement or any other document.
19
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers, being first duly authorized, as of the
day and year first above written.
THE EDUCATION RESOURCES
INSTITUTE, INC.
By:__________________________
Name:
Title:
FIRST MARBLEHEAD DATA
SERVICES, INC.
By:__________________________
Name:
Title:
THE NATIONAL COLLEGIATE
STUDENT LOAN TRUST 20____-___
By: ___________________,
acting solely as Owner Trustee
and not in its individual
capacity
By:__________________________
Name:
Title:
SCHEDULES TO DEPOSIT AND SECURITY AGREEMENT
Schedule A - Student Loan Programs
Schedule B - Loan Originators, Guaranty Agreements, Student Loan Purchase
Agreements and Account Security Agreements
EXHIBITS TO DEPOSIT AND SECURITY AGREEMENT
Exhibit 1 - Payment of Guaranty Claims Direction Letter
Exhibit 2 - Remittance of Guaranty Fees and/or Recoveries Letter
Exhibit 3 - [intentionally omitted]
Exhibit 4 - [intentionally omitted]
Exhibit 5 - Withdrawal Request
Exhibit 6 - Guaranty Agreements
SCHEDULE A
STUDENT LOAN PROGRAMS
SCHEDULE B
LOAN ORIGINATORS, GUARANTY AGREEMENTS, STUDENT LOAN PURCHASE AGREEMENTS AND
ACCOUNT SECURITY AGREEMENTS
II. GUARANTY AGREEMENTS. Each of the following Guaranty Agreements, as amended
or supplemented, was entered into by and between ▇▇▇▇ and:
III. STUDENT LOAN PURCHASE AGREEMENTS. Each of the Student Loan Purchase
Agreements, as amended or supplemented, was entered into by and among The First
Marblehead Corporation, the Owner and:
V. ACCOUNT SECURITY AGREEMENTS. Each of the following Deposit and Security
Agreements, as amended or supplemented, was entered into by and among ▇▇▇▇, The
First Marblehead Corporation, the Trustee and:
EXHIBIT 1
PAYMENT OF GUARANTY CLAIMS DIRECTION LETTER
[▇▇▇▇ LETTERHEAD]
FIRST MARBLEHEAD DATA SERVICES, INC.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
WITH A COPY TO:
U.S. BANK NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES-SFS
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: ▇▇▇▇/NCT Pledged Account #
Ladies and Gentlemen:
Reference is made to (i) the Deposit and Security Agreement (the
"AGREEMENT"), dated as of ___________, 20____, by and among THE EDUCATION
RESOURCES INSTITUTE, INC. ("▇▇▇▇"), FIRST MARBLEHEAD DATA SERVICES, INC. and THE
NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-____. Capitalized terms used and
not otherwise defined herein have the respective meanings ascribed to such terms
in the Agreement.
In accordance with the Agreement, please remit $___________________ in
Guarantee Claims to
U.S. Bank National Association
ABA # [_______________]
Corporate Trust Department
DDA A/C# [____________]
Attention: [__________________________]Collateral Proceeds Acct.
SEI#: [________________]
In addition, please fax this direction letter along with the attached
breakdown, which lists the Loan(s), associated with the above-referenced claim
funds to:
[OWNER] Attention: [Name]; and [SERVICER] Attention: [Name]:
Fax Number: ____________ Fax Number:___________________
Please contact me at [▇▇▇▇ CONTACT TELEPHONE NUMBER] should you have any
questions regarding this request.
Authorized Signature
▇▇▇▇
Enc
EXHIBIT 2
RECOVERIES LETTER
[▇▇▇▇ LETTERHEAD]
FIRST MARBLEHEAD DATA SERVICES, INC.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
WITH A COPY TO:
U.S. BANK NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES-SFS
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: ▇▇▇▇/NCT Pledged Account #
Ladies and Gentlemen:
Reference is made to the Deposit and Security Agreement (the
"AGREEMENT"), dated as of ____________, 20____, by and among THE EDUCATION
RESOURCES INSTITUTE, INC., ("▇▇▇▇"), FIRST MARBLEHEAD DATA SERVICES, INC. and
THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-____. Capitalized terms used
and not otherwise defined herein have the respective meanings ascribed to such
terms in the Agreement.
In accordance with the Agreement, the following amounts will be wired
to the Pledged Account:
1. $____________________ Total Guaranty Fees*
*ATTACHED IS A LIST OF EACH LOAN NAME, LOAN NUMBER AND AMOUNT
ASSOCIATED WITH THIS GUARANTY FEE REMITTANCE.
2. $____________________ Total Recovery**
** ATTACHED IS A LIST OF EACH LOAN NAME, LOAN NUMBER AND
AMOUNT ASSOCIATED WITH THIS RECOVERY REMITTANCE.
$_____________________ Total Amount wired to the Trustee
The above-referenced funds will be wired to the Trustee using the following wire
instruction:
U.S. BANK NATIONAL ASSOCIATION
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
ABA # [_______________]
A/C# [_______________]
PLEDGED ACCOUNT
SEI ###### - 000
Please contact me at [▇▇▇▇ CONTACT TELEPHONE NUMBER] should you have any
questions regarding this request.
Authorized Signature
[▇▇▇▇]
EXHIBIT 5
REQUEST FOR REIMBURSEMENT OF INCOME TAX OR OTHER TAX AMOUNTS
[▇▇▇▇ LETTERHEAD]
U.S. BANK NATIONAL ASSOCIATION
CORPORATE TRUST SERVICES-SFS
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
FIRST MARBLEHEAD DATA SERVICES, INC.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Re: ▇▇▇▇/NCT Pledged Account #
Ladies and Gentlemen:
Reference is made to (i) the Deposit and Security Agreement (the
"AGREEMENT"), dated as of ____________, 20____, by and among THE EDUCATION
RESOURCES INSTITUTE, INC., ("▇▇▇▇"), FIRST MARBLEHEAD DATA SERVICES, INC. and
THE NATIONAL COLLEGIATE STUDENT LOAN TRUST 20____-____. Capitalized terms used
and not otherwise defined herein have the respective meanings ascribed to such
terms in the Agreement.
In accordance with Section 3(d)(ii) of the Agreement, this is to inform
you that ▇▇▇▇ has been assessed and has paid the sum of
$______________________________ in income or excise taxes with respect to income
earned on the Pledged Account. We hereby request reimbursement of such amount to
be sent as follows:
PLEASE USE THE FOLLOWING WIRE INSTRUCTIONS:
[Bank Name]
[Bank Location]
ABA #
A/C#
ATTENTION: ▇▇▇▇
Comments:
In accordance with the Agreement, we are forwarding a copy of this
request to the Owner and the Trustee. We have also enclosed documentation to
support this request.
Please contact me at [▇▇▇▇ CONTACT TELEPHONE NUMBER] should you have
any questions regarding this request.
Authorized Signature
▇▇▇▇
Enc
Exhibit 6
[Copies of Guaranty Agreements]