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COPELCO CAPITAL FUNDING LLC 99-1,
Issuer
MANUFACTURERS AND TRADERS TRUST COMPANY,
Trustee
and
COPELCO CAPITAL, INC.,
Servicer
----------------------
INDENTURE
Dated as of March 1, 1999
----------------------
$____________ in aggregate principal amount of
Receivables Notes, and $____________ in aggregate
principal amount of Class R Notes, Series 1999-A,
consisting of:
$______________% Class A-1 Lease-Backed Notes
$______________% Class A-2 Lease-Backed Notes
$______________% Class A-3 Lease-Backed Notes
$______________% Class A-4 Lease-Backed Notes
$_________________% Class B Lease-Backed Notes
$_________________% Class C Lease-Backed Notes
$_________________% Class D Lease-Backed Notes
$_________________% Class E Lease-Backed Notes
$_______________% Class R-1 Lease Residual-Backed Notes
$_______________% Class R-2 Lease Residual-Backed Notes
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COPELCO CAPITAL FUNDING LLC 99-1
Reconciliation and Tie between the Indenture
dated as of March 1, 1999 and the
Trust Indenture Act of 1939, as amended
Trust Indenture Act Section Indenture Section
--------------------------- -----------------
Section 310 (a)(1).................... Section 7.08
(a)(2).................... 7.08
(a)(3).................... Not Applicable
(a)(4).................... Not Applicable
(b)....................... 7.08; 7.09; 6.07; 1.05; 1.06
(c)....................... Not Applicable
311 (a)....................... 7.14
(b)....................... 7.14
312 (a)....................... 2.11
(b)....................... 11.02
(c)....................... 11.02
313 (a)....................... 7.15
(b)(1).................... Not Applicable
(b)(2).................... 7.15
(c)....................... 7.15; 1.06
(d)....................... 7.15
314 (a)....................... 8.12; 8.09; 1.06
(b)....................... Not Applicable
(c)(1).................... 11.03
(c)(2).................... 11.03
(c)(3).................... 11.01
(d)....................... 11.01
(e)....................... 11.04
(f)....................... Not Applicable
315 (a)....................... 7.01(a)
(b)....................... 7.02; 1.06
(c)....................... 7.01(b)
(d)....................... 7.01(c)
(e)....................... 6.14
316 (a) (last sentence)....... 2.12
(a)(1)(A)................. 6.12
(a)(1)(B)................. 6.13
(a)(2).................... Not Applicable
317 (a)(1).................... 6.03(c)
(a)(2).................... 6.04
(b)....................... 8.03(c)
318 (a)....................... 11.01, 11.02
(c)....................... 11.01
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INDENTURE
This INDENTURE dated as of March 1, 1999, is among COPELCO CAPITAL
FUNDING LLC 99-1, a Delaware limited liability company (herein called the
"Issuer"), MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking
corporation, as trustee (herein called the "Trustee"), and COPELCO CAPITAL,
INC., as servicer (herein called the "Servicer").
RECITALS
The Issuer has duly authorized the issuance of $__________ in aggregate
principal amount of its Lease-Backed Notes, and $_________ in aggregate
principal amount of its Lease Residual-Backed-Notes, Series 1999-A, consisting
of $_________ aggregate principal amount of ___% Class A-1 Lease-Backed Notes
(the "Class A-1 Notes"), $__________ aggregate principal amount of ____% Class
A-2 Lease-Backed Notes (the "Class A-2 Notes"), $___________ aggregate principal
amount of ____% Class A-3 Lease-Backed Notes (the "Class A-3 Notes"),
$____________ aggregate principal amount of _____% Class A-4 Lease-Backed Notes
(the "Class A-4 Notes", together with the Class A-1 Notes, Class A-2 Notes, and
Class A-3 Notes, the "Class A Notes"), $____________ aggregate principal amount
of _____% Class B Lease-Backed Notes (the "Class B Notes"), $__________
aggregate principal amount of ____% Class C Lease-Backed Notes (the "Class C
Notes"), $____________ aggregate principal amount of _____% Class D Lease-Backed
Notes (the "Class D Notes"), $____________ aggregate principal amount of ____%
Class E Lease-Backed Notes (the "Class E Notes", together with the Class A
Notes, the Class B Notes, the Class C Notes and the Class D Notes are referred
to collectively as the "Receivable Notes"), $__________ aggregate principal
amount of _____%, Class R-1 Residual Notes (the "Class R-1 Notes"), and
$___________ aggregate principal amount of ____% Class R-2 Residual Notes (the
"Class R-2 Notes"; together with the Class R-1 Notes, the Class R Notes); the
Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the
Class E Notes and the Class R Notes are referred to collectively as the
"Notes"), of substantially the tenor hereinafter set forth, and to provide
therefor the Issuer has duly authorized the execution and delivery of this
Indenture. The Class A Notes, the Class B Notes, the Class C Notes, the Class D
Notes, the Class E Notes and the Class R Notes shall be entitled to payments of
interest and principal as set forth herein.
All things necessary to make the Notes, when executed by the Issuer and
authenticated and delivered hereunder, the valid obligations of the Issuer, and
to make this Indenture a valid agreement of the Issuer, in accordance with its
terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Notes
by the holders thereof, it is mutually covenanted and agreed, for the benefit of
all Noteholders, as follows:
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GRANTING CLAUSE
The Issuer hereby Grants to the Trustee on the Issuance Date, for the
benefit and security of the Noteholders, all of the Issuer's right, title and
interest in and to (a) the Leases and all Lease Payments, Casualty Payments,
Lease Repurchase Amounts, Termination Payments, Residual Realizations and other
amounts now due or becoming due with respect thereto since the Cut-Off Date
(other than any prepayments of rent required pursuant to the terms of any Lease
at or before the commencement of the Lease and any payments due before the
Cut-Off Date) and all Additional Leases and Substitute Leases and all Lease
Payments, Casualty Payments, Lease Repurchase Amounts, Termination Payments,
Residual Realizations and other amounts due or becoming due with respect thereto
since the effective date of their respective addition or substitution (other
than any prepayments of rent required by the terms of any Lease at or before the
commencement of the Lease and any payments due before the effective date of such
addition or substitution), (b) all rights of the Issuer to or under any
guarantees of collateral (including all rights of the Issuer in any security
deposits and the Issuer's right to repayment by Copelco Capital, Inc.
("Copelco") of any Inter-Company loans pursuant to Section 13.01 of the
Assignment and Servicing Agreement) for the Lessee's obligations under any
Lease, (c) all interests of the Issuer in the Equipment at any time subject to
any Lease, including any security interest of Copelco in the Equipment, (d) all
moneys from time to time held by the Trustee pursuant to Section 3.01(a) hereof
pending deposit in one of the accounts referred to therein, (e) all moneys from
time to time on deposit in any of the Trust Accounts, including all investments
and income from the investment of such moneys, (f) all rights of the Issuer
under the Assignment and Servicing Agreement, and (g) all proceeds of the
conversion, whether voluntary or involuntary, of any of the foregoing into cash
or other property (collectively, the "Granted Assets"). Such Grant is made in
trust to secure (i) the payment of all amounts due on the Notes, in accordance
with their terms, equally and ratably without prejudice, priority, or
distinction among any of the Notes, respectively, by reason of differences in
time of issuance or otherwise, (ii) the payment of all other sums payable under
this Indenture with respect to the Notes and (iii) compliance with the
provisions of this Indenture with respect to the Notes.
The Trustee acknowledges such ▇▇▇▇▇, accepts the trusts hereunder in
accordance with the provisions hereof, and agrees to perform the duties herein
required to the best of its ability and to the end that the interests of the
Noteholders may be adequately and effectively protected as hereinafter provided.
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 1.01. General Definitions.
Except as otherwise specified or as the context may otherwise require,
the following terms have the meanings set forth below for all purposes of this
Indenture, and
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the definitions of such terms are applicable to the singular as well as to the
plural forms of such terms and to the masculine as well as to the feminine and
neuter genders of such terms.
Accredited Investor: as defined in Section 2.03 of this Agreement.
Act: with respect to any Noteholder, as defined in Section 1.04.
Additional Lease: as defined in Section 12 of the Assignment and
Servicing Agreement.
Additional Principal: with respect to each Payment Date equals (a) zero
if each of the Class Target Investor Principal Amounts for Classes B, C, D, and
E exceed their respective Class Floors on such Payment Date and (b) in each
other case the excess, if any, of (i)(A) the Outstanding Principal Balance of
the Notes plus the Overcollateralization Balance as of the immediately preceding
Payment Date after giving effect to payments on such Payment Date minus (B) the
Discounted Present Value of the Performing Leases as of the related
Determination Date, over (ii) the sum of the Class A Principal Payment, the
Class B Principal Payment, the Class C Principal Payment, the Class D Principal
Payment and the Class E Principal Payment to be paid on such Payment Date.
Affiliate: with respect to any specified Person, any other Person which
directly or indirectly controls, or is controlled by, or is under common control
with, such specified Person. The term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by
contract, or otherwise.
Assignment and Servicing Agreement: the Assignment and Servicing
Agreement dated as of March 1, 1999 between the Issuer and Copelco, as the same
may be amended or modified from time to time in accordance with the provisions
hereof and thereof.
Authorized Officer: with respect to any matter, any officer of or other
Person representing the Issuer, Copelco or the Servicer, as the case may be, who
is authorized to act for the Issuer, Copelco or the Servicer, as the case may
be.
Available Funds: with respect to any Payment Date, the amount on
deposit in the Collection Account with respect to the immediately preceding Due
Period, including, without limitation, (a) Lease Payments due during the
immediately preceding Due Period (net of any Excess Copy Charges, Maintenance
Charges and Fee Per Scan Charges), (b) recoveries from Non-Performing Leases to
the extent Copelco has not substituted Substitute Leases for such Non-Performing
Leases (except to the extent required to reimburse unreimbursed Servicer
Advances pursuant to Section 5 of the Assignment and Servicing Agreement); (c)
proceeds from repurchases by Copelco of Leases as a result of breaches of
representations and warranties to the extent Copelco has not substituted
Substitute Leases for such Leases other than Residual Warranty Payments; (d)
proceeds from the investment of funds in the Collection Account and the
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Reserve Account, if any; (e) Casualty Payments other than Residual Casualty
Payments; (f) Servicer Advances; (g) Termination Payments other than Residual
Prepayments; (h) late charges on delinquent Lease Payments not advanced by the
Servicer and (i) to the extent there occurs an Available Funds Shortfall, funds,
if any, on deposit in the Reserve Account; provided that Available Funds shall
not include Residual Realizations.
Available Reserve Amount: the amount on deposit in the Reserve Account.
Available Funds Shortfall: as defined in Section 3.05(b).
Book-Entry Class A-1 Notes: beneficial interests in the Class A-1
Notes, the ownership and transfers of which shall be made through book entries
by a Clearing Agency as described in Section 2.05.
Book-Entry Class A-2 Notes: beneficial interests in the Class A-2
Notes, the ownership and transfers of which shall be made through book entries
by a Clearing Agency as described in Section 2.05.
Book-Entry Class A-3 Notes: beneficial interests in the Class A-3
Notes, the ownership and transfers of which shall be made through book entries
by a Clearing Agency as described in Section 2.05.
Book-Entry Class A-4 Notes: beneficial interests in the Class A-4
Notes, the ownership and transfers of which shall be made through book entries
by a Clearing Agency as described in Section 2.05.
Book-Entry Class B Notes: beneficial interests in the Class B Notes,
the ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.05.
Book-Entry Class C Notes: beneficial interests in the Class C Notes,
the ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.05.
Book-Entry Class D Notes: beneficial interests in the Class D Notes,
the ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.05.
Book-Entry Class R-1 Notes: beneficial interests in the Class R-1
Notes, the ownership and transfers by which shall be made through book entries
by a Clearing Agency as described in Section 2.05.
Book-Entry Class R-2 Notes: beneficial interests in the Class R-2
Notes, the ownership and transfers of which shall be made through book-entries
by a Clearing Agency as described in Section 2.05.
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Booked Residual Value - the estimated residual value of the Equipment
recorded on the books of the Transferor as of the Cut-Off Date in the case of
the initial Leases, and as of the date of substitution in the case of a
Substitute Lease.
Business Day: any day that is not a Saturday, Sunday or other day on
which commercial banking institutions in the city in which the Corporate Trust
Office and the Servicer is located are authorized or obligated by law or
executive order to remain closed.
Casualty Payment: any payment pursuant to a Lease on account of the
loss, theft, condemnation, governmental taking, destruction, or damage beyond
repair of any item of Equipment subject thereto which results, in accordance
with the terms of the Lease, in a reduction in the number or amount of any
future Lease Payments due thereunder or in the termination of the Lessee's
obligation to make future Lease Payments thereunder.
Cede & Co.: the initial registered holder of the Class A Notes, the
Class B Notes, the Class C Notes, the Class D Notes, the Class R-1 Notes and the
Class R-2 Notes, acting as nominee of The Depository Trust Company.
Class A Notes: as defined in the Recitals hereto.
Class A Percentage: _______% (approximately).
Class A Principal Payment: (a) while the Class A-1 Notes are
outstanding, (i) on all Payment Dates prior to the _____ 1999 Payment Date, the
lesser of (1) the amount necessary to reduce the Outstanding Principal Amount on
the Class A-1 Notes to zero and (2) the difference between (a) the Discounted
Present Value of the Performing Leases as of the previous Determination Date and
(b) the Discounted Present Value of the Performing Leases as of the related
Determination Date, and (ii) on and after the ______ 1999 Payment Date, the
entire Outstanding Principal Amount on the Class A-1 Notes, and (b) after the
Class A-1 Notes have been paid in full, the amount necessary to reduce the
aggregate Outstanding Principal Amount on the Class A Notes to the Class A
Target Investor Principal Amount.
Class A Target Investor Principal Amount: with respect to each Payment
Date, an amount equal to the product of (a) the Class A Percentage and (b) the
Discounted Present Value of the Performing Leases as of the related
Determination Date.
Class A-1 Initial Principal Amount: $_______________.
Class A-1 Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class A-1 Notes, which rate
shall be equal to ___% per annum.
Class A-1 Note Owner: with respect to a Book-Entry Class A-1 Note, the
Person who is the beneficial owner of such Book-Entry Class A-1 Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account
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with such Clearing Agency (directly or as an indirect participant, in accordance
with the rules of such Clearing Agency).
Class A-1 Noteholder: Cede & Co. or a holder of a Definitive Class A-1
Note.
Class A-1 Notes: as defined in the Recitals hereto.
Class A-2 Initial Principal Amount: $______________. Class A-2 Note
Interest Rate: with respect to any Interest Accrual Period, the rate at which
interest accrues on the Class A-2 Notes, which rate shall be equal to ________%
per annum.
Class A-2 Note Owner: with respect to a Book-Entry Class A-2 Note, the
Person who is the beneficial owner of such Book-Entry Class A-2 Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly or as an indirect
participant, in accordance with the rules of such Clearing Agency).
Class A-2 Noteholder: Cede & Co. or a holder of a Definitive Class A-2
Note.
Class A-2 Notes: as defined in the Recitals hereto.
Class A-3 Initial Principal Amount: $____________.
Class A-3 Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class A-3 Notes, which rate
shall be equal to _____% per annum.
Class A-3 Note Owner: with respect to a Book-Entry Class A-3 Note, the
Person who is the beneficial owner of such Book-Entry Class A-3 Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly or as an indirect
participant, in accordance with the rules of such Clearing Agency).
Class A-3 Noteholder: Cede & Co. or a holder of a Definitive Class A-3
Note.
Class A-3 Notes: as defined in the Recitals hereto.
Class A-4 Initial Principal Amount: $___________.
Class A-4 Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class A-4 Notes, which rate
shall be equal to _____% per annum.
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Class A-4 Note Owner: with respect to a Book-Entry Class A-4 Note, the
Person who is the beneficial owner of such Book-Entry Class A-4 Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly or as an indirect
participant, in accordance with the rules of such Clearing Agency).
Class A-4 Noteholder: Cede & Co. or a holder of a Definitive Class A-4
Note.
Class A-4 Notes: as defined in the Recitals hereto.
Class B Initial Principal Amount: $___________.
Class B Floor: with respect to each Payment Date, an amount equal to
the total of (a) ______% of the initial Discounted Present Value of the Leases
as of the Cut-Off Date, plus (b) the Cumulative Loss Amount with respect to such
Payment Date, minus (c) the sum of the Outstanding Principal Amount of the Class
C Notes, the Outstanding Principal Amount of the Class D Notes, the Outstanding
Principal Amount of the Class E Notes and the Overcollateralization Balance as
of the immediately preceding Payment Date after giving effect to all principal
payments made on that day, minus (d) the amount on deposit in the Reserve
Account after giving effect to withdrawals to be made on such Payment Date.
Class B Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class B Notes, which rate
shall be ______% per annum.
Class B Note Owner: with respect to a Book-Entry Class B Note, the
Person who is the beneficial owner of such Book-Entry Class B Note, as reflected
on the books of the Clearing Agency, or on the books of a Person maintaining an
account with such Clearing Agency (directly or as an indirect participant, in
accordance with the rules of such Clearing Agency).
Class B Noteholder: Cede & Co. or a holder of a Definitive Class B
Note.
Class B Notes: as defined in the Recitals hereto.
Class B Percentage: _______% (approximately).
Class B Principal Payment: (a) while the Class A-1 Notes are
outstanding, zero and (b) after the Outstanding Principal Amount on the Class
A-1 Notes has been reduced to zero, the amount necessary to reduce the
Outstanding Principal Amount of the Class B Notes to the greater of the Class B
Target Investor Principal Amount and the Class B Floor.
Class B Target Investor Principal Amount: with respect to each Payment
Date, an amount equal to the product of (a) the Class B Percentage and (b) the
Discounted Present Value of the Performing Leases as of the related
Determination Date.
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Class C Initial Principal Amount: $_________.
Class C Floor: With respect to each Payment Date, the amount equal to
the total of (a) ______% of the initial Discounted Present Value of the Leases
as of the Cut-Off Date, plus (b) the Cumulative Loss Amount with respect to such
Payment Date, minus (c) the sum of the Outstanding Principal Amount of the Class
D Notes, the Outstanding Principal Amount of the Class E Notes, and the
Overcollateralization Balance as of the immediately preceding Payment Date after
giving effect to all principal payments made on that day, minus (d) the amount
on deposit in the Reserve Account after giving effect to withdrawals to be made
on such Payment Date; provided, however, that if the Outstanding Principal
Amount of the Class B Notes is less than or equal to the Class B Floor on such
Payment Date, the Class C Floor will equal the Outstanding Principal Amount of
the Class C Notes utilized in the calculation of the Class B Floor for such
Payment Date.
Class C Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class C Notes, which rate
shall be ______% per annum.
Class C Note Owner: with respect to a Book-Entry Class C Note, the
Person who is the beneficial owner of such Book-Entry Class C Note, as reflected
on the books of the Clearing Agency, or on the books of a Person maintaining an
account with such Clearing Agency (directly or as an indirect participant, in
accordance with the rules of such Clearing Agency).
Class C Noteholder: Cede & Co. or a holder of a Definitive Class C
Note.
Class C Notes: as defined in the Recitals hereto.
Class C Percentage: ________% (approximately).
Class C Principal Payment: (a) while the Class A-1 Notes are
outstanding, zero and (b) after the Outstanding Principal Amount on the Class
A-1 Notes has been reduced to zero, the amount necessary to reduce the
Outstanding Principal Amount of the Class C Notes to the greater of the Class C
Target Investor Principal Amount and the Class C Floor.
Class C Target Investor Principal Amount: with respect to each Payment
Date, an amount equal to the product of (a) the Class C Percentage and (b) the
Discounted Present Value of the Performing Leases as of the related
Determination Date.
Class D Initial Principal Amount: $_________.
Class D Floor: with respect to each Payment Date, an amount equal to
the total of (a) _____% of the initial Discounted Present Value of the Leases as
of the Cut-Off Date, plus (b) the Cumulative Loss Amount with respect to such
Payment Date, minus (c) the sum of the Outstanding Principal Amount of the Class
E Notes, and the Overcollateralization Balance as of the immediately preceding
Payment Date after giving
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effect to all principal payments made on that day minus (d) the amount on
deposit in the Reserve Account after giving effect to withdrawals to be made on
such Payment Date; provided, however, that if the Outstanding Class C Principal
Amount is less than or equal to the Class C Floor on such Payment Date, the
Class D Floor will equal the Outstanding Class D Principal Amount utilized in
the calculation of the Class C Floor Amount for such Payment Date.
Class D Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class D Notes, which rate
shall be ______% per annum.
Class D Note Owner: with respect to a Book-Entry Class D Note, the
Person who is the beneficial owner of such Book-Entry Class D Note, as reflected
on the books of the Clearing Agency, or on the books of a Person maintaining an
account with such Clearing Agency (directly or as an indirect participant, in
accordance with the rules of such Clearing Agency).
Class D Noteholder: Cede & Co. or a holder of a Class D Note.
Class D Notes: as defined in the Recitals hereto.
Class D Percentage: _______% (approximately).
Class D Principal Payment: (a) while the Class A-1 Notes are
outstanding, zero and (b) after the Outstanding Principal Amount on the Class
A-1 Notes has been reduced to zero, the amount necessary to reduce the
Outstanding Principal Amount of the Class D Notes to the greater of the Class D
Target Investor Principal Amount and the Class D Floor.
Class D Target Investor Principal Amount: with respect to each Payment
Date, an amount equal to the product of (a) the Class D Percentage and (b) the
Discounted Present Value of the Performing Leases as of the related
Determination Date.
Class E Initial Principal Amount: $_________.
Class E Floor: With respect to each Payment Date, an amount equal to
the total of (a) ____% of the initial Discounted Present Value of the Leases as
of the Cut-Off Date, plus (b) the Cumulative Loss Amount with respect to such
Payment Date, minus (c) the Overcollateralization Balance as of the immediately
preceding Payment Date after giving effect to all principal payments made on
that day, minus (d) the amount on deposit in the Reserve Account after giving
effect to withdrawals to be made on such Payment Date; provided, however, that
if the Outstanding Principal Amount of the Class D Notes is less than or equal
to the Class D Floor on such Payment Date, the Class E Floor will equal the
Outstanding Principal Amount of the Class E Notes utilized in the calculation of
the Class D Floor for such Payment Date.
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Class E Note Interest Rate: with respect to any Interest Accrual
Period, the rate at which interest accrues on the Class E Notes, which rate
shall be ____% per annum.
Class E Noteholder: a holder of a Class E Note.
Class E Notes: as defined in the Recitals hereto.
Class E Percentage: _____% (approximately).
Class E Principal Payment: (a) while the Class A-1 Notes are
outstanding, zero and (b) after the Outstanding Principal Amount on the Class
A-1 Notes has been reduced to zero, the amount necessary to reduce the
Outstanding Principal Amount of the Class E Notes to the greater of the Class E
Target Investor Principal Amount and the Class E Floor.
Class E Target Investor Principal Amount: with respect to each Payment
Date, an amount equal to the product of (a) the Class E Percentage and (b) the
Discounted Present Value of the Performing Leases as of the related
Determination Date.
Class R Notes: as defined in the Recitals hereto.
Class R-1 Initial Principal Amount: $___________.
Class R-1 Notes: as defined in the Recitals hereto.
Class R-1 Note Interest Rate: with respect to any Interest Accrual
Period, the rate of which interest accrues on the Class R-1 Notes, which rate
shall be _____% per annum.
Class R-1 Note Owner: with respect to a Book-Entry Class R-1 Note, the
Person who is the beneficial owner of such Book-Entry Class R-1 Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly or as an indirect
participant, in accordance with the rules of such Clearing Agency).
Class R-1 Noteholder: Cede & Co. or a holder of a Definitive Class R-1
Note.
Class R-2 Initial Principal Amount: $__________.
Class R-2 Notes: as defined in the Recitals hereto.
Class R-2 Note Interest Rate: with respect to any Interest Accrual
Period, the rate of which interest accrues on the Class R-2 Notes, which rate
shall be _____% per annum.
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Class R-2 Noteholder: Cede & Co. or a holder of a Definitive Class R-2
Note.
Class R-2 Note Owner: with respect to a Book-Entry Class R-2 Note, the
Person who is the beneficial owner of such Book-Entry Class R-2 Note, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly or as an indirect
participant, in accordance with the rules of such Clearing Agency).
Class Target Investor Principal Amounts: means the Class A Target
Investor Principal Amount or the Class B Target Investor Principal Amounts or
the Class C Target Investor Principal Amounts or the Class D Target Investor
Principal Amounts or the Class E Target Investor Principal Amounts,
respectively.
Clearing Agency: an organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.
Clearing Agency Participant: a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects
book-entry transfers and pledges of securities deposited with the Clearing
Agency.
Collection Account: the account or accounts by that name established
and maintained by the Trustee pursuant to Section 3.01.
Commission: the Securities and Exchange Commission.
Copelco: As defined in the Granting Clause.
Corporate Trust Office: the principal corporate trust office of the
Trustee located at ▇▇▇ ▇&▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, or at such
other address as the Trustee may designate from time to time by notice to the
Noteholders, the Issuer and Copelco.
Cumulative Loss Amount: with respect to each Payment Date, an amount
equal to the excess, if any, of (a) the total of (i) the Outstanding Principal
Amount of the Receivable Notes as of the immediately preceding Payment Date
after giving effect to all principal payments made on that day, plus (ii) the
Overcollateralization Balance as of the immediately preceding Payment Date,
minus (iii) the lesser of (A) the Discounted Present Value of the Performing
Leases as of the Determination Date relating to the immediately preceding
Payment Date minus the Discounted Present Value of the Performing Leases as of
the related Determination Date and (B) Available Funds for such Payment Date
remaining after the payment of amounts owing the Servicer and in respect of
interest on the Receivable Notes on such Payment Date over (b) the Discounted
Present Value of Performing Leases as of the related Determination Date.
Cut-Off Date: the close of business on January 31, 1999.
DCR: Duff & ▇▇▇▇▇▇ Credit Rating Co, and any such successor.
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Default: any occurrence that is, or with notice or the lapse of time or
both would become, an Event of Default.
Definitive Note: a definitive, fully registered Note issued pursuant to
Section 2.07.
Delinquent Lease: as of any Determination Date, any Lease (other than a
Lease which became a Non-Performing Lease prior to such Determination Date) with
respect to which the Lessee has not paid all Lease Payments then due.
Depository Agreement: the letter of representations, between the Issuer
and the Depository Trust Company, as Clearing Agency.
Determination Date: with respect to any Payment Date, the fifth
Business Day immediately preceding such Payment Date.
Discount Rate: with respect to any Determination Date, ______%, which
equals the sum of (a) the weighted-average interest rate of the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B
Notes, the Class C Notes, the Class D Notes and the Class E Notes on the
Issuance Date weighted by (i) the Class A-1 Initial Principal Amount, the Class
A-2 Initial Principal Amount, the Class A-3 Initial Principal Amount, the Class
A-4 Initial Principal Amount, the Class B Initial Principal Amount, the Class C
Initial Principal Amount, the Class D Initial Principal Amount or the Class E
Initial Principal Amount, as applicable, and (ii) the expected weighted average
life (under a zero prepayment and no loss scenario) of each Class of Notes and
(b) the Servicing Fee rate of 0.75% per annum.
Discounted Present Value of the Leases: with respect to any Lease as of
the Cut-Off Date or any date thereafter, an amount equal to the net present
value of all Lease Payments (not including delinquent amounts, Excess Copy
Charges, Maintenance Charges and Fee Per Scan Charges) to become due thereunder
following the Cut-Off Date or during the Due Period preceding the following
Payment Date, as the case may be (determined by discounting on a monthly basis
(assuming a calendar year consisting of twelve 30-day months)), at a rate equal
to the Discount Rate, each such Lease Payment from the Payment Date following
the date such Lease Payment was due). In determining the Discounted Present
Value of the Leases on any Determination Date or with respect to a Payment Date,
the future remaining Lease Payments will be calculated after giving effect to
any payments received prior to such date of calculation to the extent such
payments relate to Lease Payments due and payable by the Lessees with respect to
the related Due Period and any prior Due Period.
Discounted Present Value of the Delinquent Leases: with respect to any
Payment Date or Determination Date, the Discounted Present Value of the Leases
that are not Non-Performing Leases as to which a Lease Payment, or any portion
thereof, was 63 or more days overdue as of the last day of the Due Period
immediately preceding such Payment Date.
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Discounted Present Value of the Performing Leases: the Discounted
Present Value of the Leases, reduced by the present value of all future
remaining scheduled payments on the Non-Performing Leases (not including
delinquent amounts, Excess Copy Charges, Maintenance Charges or Fee Per Scan
Charges) discounted at the Discount Rate. In determining the Discounted Present
Value of the Performing Leases on any Determination Date or with respect to a
Payment Date, the future remaining Lease Payments will be calculated after
giving effect to any payments received prior to such date of calculation to the
extent such payments relate to Lease Payments due and payable by the Lessees
with respect to the related Due Period and any prior Due Period.
Due Period: with respect to any Payment Date and the Determination Date
with respect thereto, the period beginning on the first day and ending on the
last day of the calendar month prior to the month in which such Payment Date and
such Determination Date occurs.
Eligible Account: either (a) an account maintained with a depository
institution or trust company acceptable to each of the Rating Agencies or (b) a
trust account or similar account maintained in the corporate trust department
with a federal or state chartered depository institution, which may be an
account maintained with the Trustee.
Eligible Investments: any one or more of the following obligations or
securities:
(a) direct non-callable obligations of, and non-callable obligations
fully guaranteed by, the United States of America, or any agency or
instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America;
(b) demand and time deposits in, certificates of deposits of, and
bankers' acceptances issued by, any depository institution or company
(including the Trustee acting in its commercial capacity) incorporated under
the laws of the United States of America or any state thereof, having a
combined capital and surplus of at least $100,000,000, and subject to
supervision and examination by federal and/or state banking authorities, so
long as at the time of such investment or contractual commitment providing
for such investment the commercial paper or other short-term debt obligations
of such depository institution or company (or, in the case of a depository
institution that is the principal subsidiary of a holding company, the
commercial paper or other short-term debt obligations of such holding
company) have the highest short-term credit ratings available from ▇▇▇▇▇'▇
and, to the extent rated by DCR and Fitch, DCR and Fitch;
(c) repurchase obligations with respect to and collateralized by (i)
any security described in clause (a) above or (ii) any other security issued
or guaranteed by an agency or instrumentality of the United States of
America, in each case entered into with a depository institution or company
(acting as
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principal) of the type described in clause (b) above; provided that the
Trustee has taken delivery of such security;
(d) commercial paper (including both non-interest bearing discount
obligations and interest-bearing obligations) payable on demand or on a
specified date not more than one year after the date of issuance thereof
having the highest short-term credit ratings from ▇▇▇▇▇'▇ and, to the extent
rated by DCR and Fitch, DCR and Fitch at the time of such investment;
(e) money market funds that redeem their shares on demand, invest only
in other Eligible Investments, and are rated Aaa by ▇▇▇▇▇'▇;
(f) demand notes payable on demand issued by an institution rated "P-1"
by ▇▇▇▇▇'▇, and to the extent rated by DCR and Fitch, DCR and Fitch at the
time of such investment;
(g) funding agreements or guaranteed investment contracts provided by
issuers rated "P-1" by ▇▇▇▇▇'▇ (and to the extent rated by DCR and Fitch, DCR
and Fitch at the time of such investment) which provide, by their terms, for
receipt by the trustee on or prior to the next Payment Date of a
predetermined fixed dollar amount which cannot vary or change; and
(h) such other investments as may be approved by ▇▇▇▇▇'▇, DCR and
Fitch.
Equipment: each item of personal property, together with any
replacement parts, additions, and repairs thereto, any replacements thereof, and
any accessories incorporated therein and/or affixed thereto, subject to a Lease
or, following expiration or termination of the Lease to which the same was
previously subject, remaining subject to the lien of this Indenture in
accordance with the provisions hereof.
Event of Default: as defined in Section 6.01.
Exchange Act: the Securities Exchange Act of 1934, as amended.
Excess Copy Charge: with respect to any Lease, means the amount owing
by such Lessee under such Lease reflecting usage of the related Equipment in
excess of a specified copy amount per month.
Fee Per Scan Charge: with respect to any Lease, means the amount owing
by such Lessee under such Lease reflecting usage of the related Equipment in
excess of a specified scan amount per month.
Financing Statement: as defined in Section 12 of the Assignment and
Servicing Agreement.
Fitch: Fitch IBCA, Inc.
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Governmental Authority: Any court or federal or state regulatory body,
administrative agency or other tribunal or other governmental instrumentality.
▇▇▇▇▇: grant, bargain, ▇▇▇▇, convey, assign, transfer, mortgage,
pledge, create and grant a security interest in and right of set-off against,
deposit, set over and confirm. The Grant of the Trust Estate effected by this
Indenture shall include all rights, powers, and options (but none of the
obligations) of the Issuer with respect thereto, including, without limitation,
the immediate and continuing right to claim for, collect, receive, and give
receipts for Lease Payments in respect of the Leases and all other moneys
payable thereunder, to give and receive notices and other communications, to
make waivers or other agreements, to exercise all rights and options, to bring
judicial proceedings in the name of the Issuer or otherwise, and generally to do
and receive anything that the Issuer is or may be entitled to do or receive
thereunder or with respect thereto.
Granted Assets: as defined in the Granting Clause.
Holder: a holder of a Note.
Indenture: this instrument as originally executed and as from time to
time supplemented or amended pursuant to the applicable provisions hereof.
Initial ADRB: the Initial Aggregate Discounted Residual Balance of the
Leases is equal to $_____________. Initial ADRB means the sum of the discounted
present value of 145% of the Booked Residual Values of all Leases, as of the
Cut-Off Date, discounted monthly at one twelfth the Residual Discount Rate.
Initial Booked Residual Value: $___________.
Initial Payment Date: March 15, 1999.
Inter-Company Loans: as defined in Section 13.01 of the Assignment and
Servicing Agreement.
"Interest Accrual Period": With respect to any Payment Date for the
Class A-1 Notes, the period from and including the prior Payment Date (or, in
the case of the first Payment Date, from and including the Issuance Date) to,
but excluding, the current Payment Date, with interest being computed on the
basis of the actual number of days in such Interest Accrual Period and a 360-day
year. With respect to any Payment Date for the Class A-2 Notes, the Class A-3
Notes, the Class A-4 Notes, the Class B Notes, the Class C Notes, the Class D
Notes, the Class E Notes, the Class R-1 Notes and the Class R-2 Notes, the
period from and including the first day of the prior calendar month (or in the
case of the first Payment Date, from and including February 15, 1999) to but
excluding the first day of the calendar month in which such Payment Date occurs,
with interest being computed on the basis of a 30-day month and a 360-day year.
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Interest Payments: as defined in Section 2.01(c).
Issuance Date: __________, 1999.
Issuer: the Person named as the "Issuer" in the first paragraph of this
instrument.
Lease: at any time, each separate lease agreement and each lease
schedule or supplement (and each master lease agreement insofar as the same
relates to any such schedule or supplement) described in Schedule 1 hereto, as
the same may be amended or modified from time to time in accordance with the
provisions hereof and thereof unless and until released from the lien of this
Indenture.
Lease Delinquency Payment: any payment made with respect to a Lease in
an amount equal to all or part of any specific Lease Payment due with respect to
such Lease (a) by the Servicer pursuant to Section 4.01 of the Assignment and
Servicing Agreement, (b) by a transfer from the Reserve Account pursuant to
Section 3.05, or (c) by the Issuer in its sole discretion.
Lease Payment: each periodic installment of rent payable by a Lessee
under a Lease. Casualty Payments, Termination Payments, prepayments of rent
required pursuant to the terms of a Lease, at or before the commencement of the
Lease, payments becoming due on or before the Cut-Off Date and supplemental or
additional payments required by the terms of a Lease with respect to taxes,
insurance, maintenance (including, without limitation, any Maintenance Charges),
or other specific charges shall not be Lease Payments hereunder. For purposes of
calculating the Discounted Present Value of the Leases and the Discounted
Present Value of the Performing Leases, the amount of any Excess Copy Charges
and Fee Per Scan Charges that may be payable under such Lease shall not be
included in such calculation.
Lease Repurchase Amount: at any date of determination with respect to
any Lease, means an amount equal to the sum of (a) the sum of (i) the Discounted
Present Value of the Lease as of the Due Period relating to such date of
determination (plus any amounts previously due and unpaid) and (ii) the product
of (x) the amount described in the foregoing clause (i) and (y) one-twelfth of
the Discount Rate and (b) the product of (i) the Initial ADRB and (ii) the
ratio, as of the Cut-Off Date, that the Booked Residual Value of the Lease bears
to the aggregate Booked Residual Value of all Leases.
Lessee: with respect to any Lease, the lessee thereunder.
Lien: as defined in Section 12 of the Assignment and Servicing
Agreement.
Liquidity Reserve Account: the account by that name established and
maintained by the Trustee pursuant to Section 3.01.
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Maintenance Charges: with respect to any Lease, the amount owing by the
Lessee under the terms of the related Lease in respect of maintenance services
being provided in connection therewith.
Maturity: with respect to any installment of principal of or interest
on any Note, the date on which such installment is due and payable as therein or
herein provided, whether at the Stated Maturity, by declaration of acceleration,
or otherwise.
Moody's: ▇▇▇▇▇'▇ Investors Services, Inc. and any successors thereto.
Nominal Buy-Out Lease: as defined in Section 12 of the Assignment and
Servicing Agreement.
Non-Performing Lease: as of any Determination Date, any Lease with
respect to which at any time following the Cut-Off Date or related Transfer
Date, as the case may be, either (a) a Lease Payment, or any portion thereof,
was 123 or more days overdue as of the last day of the Due Period with respect
to such Determination Date, unless on or before such Determination Date such
Lease Payment (or portion thereof) has been paid or (b) the Servicer has
accelerated the remaining payments or has determined such Lease to be
uncollectible in accordance with the Servicer's customary practices prior to the
last day of the Due Period with respect to such Determination Date.
Noteholder: at any time, any Person in whose name a Note is registered
in the Note Register.
Note Interest Rate: the Class A-1 Note Interest Rate, the Class A-2
Note Interest Rate, the Class A-3 Note Interest Rate, the Class A-4 Interest
Rate, the Class B Note Interest Rate, the Class C Note Interest Rate, the Class
D Note Interest Rate, the Class E Note Interest Rate, the Class R-1 Note
Interest Rate or the Class R-2 Note Interest Rate, as the case may be.
Note Owner: the owner of a Note issued hereunder.
Note Register: as defined in Section 2.03.
Notes: any notes authorized by, and authenticated and delivered under,
this Indenture.
Officers' Certificate: a certificate delivered to the Trustee and
signed by the Chairman, the President, or a Vice President of the Issuer, and by
another Vice President, the Treasurer, and Assistant Treasurer, the Secretary,
or an Assistant Secretary of the Issuer who is not the same Person as the other
officer signing such certificate.
Opinion of Counsel: a written opinion, which shall be satisfactory in
form and substance to the Trustee, of counsel who may, except as otherwise
expressly provided in this Indenture, be inside or outside counsel for the
Issuer and who shall be satisfactory to the Trustee.
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Other Lease Payments: all payments on or in respect of leases which are
not Lease Payments, Lease Delinquency Payments, Casualty Payments, Termination
Payments, Similar Transaction Payments or Residual Realizations.
Outstanding: with respect to the Notes, as of any date of
determination, all Notes theretofore authenticated and delivered under this
Indenture except:
(a) Notes theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;
(b) Notes or portions thereof for whose payment money in the necessary
amount has been theretofore irrevocably deposited with the Trustee in trust
for the holders of such Notes; and
(c) Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture unless proof
satisfactory to the Trustee is presented that any such Notes are held by a
Person in whose hands the Note is a valid obligation;
provided, however, that in determining whether the holders of the requisite
percentage of the Outstanding Principal Amount of the Notes have given any
request, demand, authorization, direction, notice, consent, or waiver hereunder,
Notes owned by the Issuer or any Affiliate of the Issuer shall be disregarded
and deemed not to be Outstanding, except that, in determining whether the
Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent, or waiver, only Notes that a
Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded.
Outstanding Class A Principal Amount: The aggregate principal amount of
the Class A Notes Outstanding at any time.
Outstanding Class A-1 Principal Amount: the aggregate principal amount
of the Class A-1 Notes Outstanding at any time.
Outstanding Class A-2 Principal Amount: the aggregate principal amount
of the Class A-2 Notes Outstanding at any time.
Outstanding Class A-3 Principal Amount: the aggregate principal amount
of the Class A-3 Notes Outstanding at any time.
Outstanding Class A-4 Principal Amount: the aggregate principal amount
of the Class A-4 Notes Outstanding at any time.
Outstanding Class B Principal Amount: the aggregate principal amount of
the Class B Notes Outstanding at any time.
Outstanding Class C Principal Amount: the aggregate principal amount of
the Class C Notes Outstanding at any time.
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Outstanding Class D Principal ▇▇▇▇▇▇: the aggregate principal amount of
the Class D Notes Outstanding at any time.
Outstanding Class E Principal Amount: the aggregate principal amount of
the Class E Notes Outstanding at any time.
Outstanding Class R-1 Principal Amount: the aggregate principal amount
of the Class R-1 Notes Outstanding at any time.
Outstanding Class R-2 Principal Amount: the aggregate principal amount
of the Class R-2 Notes Outstanding at any time.
Outstanding Principal Amount: the aggregate unpaid principal amount of
the Notes Outstanding at any time.
Overcollateralization Balance: with respect to each Payment Date is an
amount equal to the excess, if any, of (a) the Discounted Present Value of
Performing Leases as of the related Determination Date over (b) the Outstanding
Principal Amount of the Receivable Notes as of such Payment Date after giving
effect to all principal payments made on that day.
Paying Agent: each agent of the Issuer appointed for the purpose of
making payments on the Notes, including the Trustee.
Payment Date: the 15th day of each month (or the next Business Day
thereafter if such day is not a Business Day), commencing on the Initial Payment
Date, and ending on the latest Stated Maturity.
Person: any individual, corporation, partnership, joint venture,
association, limited liability company, joint stock company, trust (including
any beneficiary thereof), unincorporated organization or government or any
agency or political subdivision thereof.
Placement Agent Agreement: the Placement Agent Agreement, among the
Issuer, Copelco, and Prudential.
Predecessor Notes: with respect to any particular Note, every previous
Note evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.04 in lieu of a lost, destroyed or stolen Note (or
a mutilated Note surrendered to the Trustee) shall be deemed to evidence the
same debt as the lost, destroyed or stolen Note (or a mutilated Note surrendered
to the Trustee).
Principal Payments: as defined in Section 2.01(b).
Rating Agency: DCR, Fitch and Moody's.
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Receivable Noteholder: at any time, any Person in whose name a
Receivable Note is registered in the Note Register.
Receivable Notes: as defined in the Recitals hereto.
Record Date: with respect to any Payment Date, the last day of the
calendar month immediately preceding such Payment Date. The Record Date will be
the Issuance Date with respect to the first Payment Date.
Required Deposit Date: as defined in Section 3.03(a).
Required Liquidity Reserve: during the first ____ months from the
Cut-Off Date, $_________ and thereafter, $________.
Required Payment: as defined in Section 3.05(b).
Required Reserve Amount: shall equal the lesser of (a) $__________ and
(b) the Outstanding Principal Amount of the Receivable Notes.
Reserve Account: the account or accounts by that name established and
maintained by the Trustee pursuant to Section 3.01.
Residual Account: the account or accounts by that name established and
maintained by the Trustee pursuant to Section 3.01.
Residual Casualty Payments: at any date of determination with respect
to a Lease, means the excess of (a) the Casualty Payment related to the Lease
over (b) the Discounted Present Value of the remaining Lease Payments related to
the Lease as of the Due Period relating to such date of determination (plus any
amounts previously due and unpaid).
Residual Discount Rate: Residual Discount Rate equals _______%. The
Residual Discount Rate is equal to the sum of (a) the weighted average Coupon
Rate of the Class R-1 and the Class R-2 Notes, each weighted by (i) the initial
principal balances of each Class of Class R Notes, and (ii) the weighted average
life of each Class of Class R Notes under a zero prepayment and no loss
scenario, as applicable, and (b) the Residual Servicing Fee expressed as
percentage.
Residual Event of Default: as defined in Section 6.13.
Residual Prepayments: at any date of determination with respect to a
Terminated Lease, means the excess of (a) the payment related to the Terminated
Lease over (b) the Discounted Present Value of the remaining Lease Payments
related to the Terminated Lease as of the Due Period relating to such date of
determination (plus any amounts previously due and unpaid).
Residual Realizations: the sum of (a) the aggregate cash flows realized
from the sale (including pursuant to a Lessee's purchase option) or re-lease of
any
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Equipment following the termination of the related Lease other than Equipment
subject to Non-Performing Leases; (b) Residual Warranty Payments; (c) Residual
Casualty Payments and (d) Residual Prepayments.
Residual Servicer Advances: as defined in Section 4.01(b) of the
Assignment and Servicing Agreement.
Residual Servicing Fee: with respect to any Payment Date, the Residual
Servicing Fee payable pursuant to the Assignment and Servicing Agreement.
Residual Warranty Payments: at any date with respect to a Warranty
Lease, means the excess of (a) the Lease Repurchase Amount related to the
Warranty Lease over (b) the Discounted Present Value of the remaining Lease
Payments related to the Warranty Lease as of the Due Period relating to such
date of determination (plus any amounts previously due and unpaid).
Responsible Officer: with respect to the Trustee, any person regularly
engaged in the administration or supervision of corporate trust accounts
(including, in the case of the original Trustee hereunder, any officer in its
Corporate Trust Administration) and also, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
S&P: Standard & Poor's Ratings Services, a division of the ▇▇▇▇▇▇-▇▇▇▇
Companies Inc. and any successor thereto.
Securities Act: the Securities Act of 1933, as amended.
Servicer: Copelco and any successor Servicer appointed pursuant to the
terms hereof and of the Assignment and Servicing Agreement and, to the extent
that it at any time is performing the functions of the Servicer, the Trustee,
subject to the terms of Section 5.01 hereof.
Servicer Advance: as defined in Section 4.01(a) of the Assignment and
Servicing Agreement.
Servicer Event of Default: as defined in Section 8.01 of the Assignment
and Servicing Agreement.
Servicer Order: a written order or request delivered to the Trustee and
signed in the name of the Servicer by an Authorized Officer.
Servicing Fee: with respect to any Payment Date, the Servicing Fee
payable pursuant to the Assignment and Servicing Agreement.
Servicing Report: as defined in Section 5.01(b) of the Assignment and
Servicing Agreement.
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Similar Transaction Agreement: an indenture between the Trustee and a
wholly-owned special purpose subsidiary of Copelco other than the Issuer,
substantially similar to this Indenture, pursuant to which notes, substantially
similar to the Notes, have been issued.
Similar Transaction Amount: for each Required Deposit Date, the amount
of all Similar Transaction Payments received by the Servicer and deposited in
the Collection Account pursuant to Section 3.02(a) and reported by the Servicer
for such Required Deposit Date pursuant to Section 5.01(a) of the Assignment and
Servicing Agreement.
Similar Transaction Payments: all payments on or in respect of leases
subject to the lien of any Similar Transaction Agreement.
Stated Maturity: The stated maturity date with respect to the Class A-1
Notes is the Payment Date in __________ (the "Class A-1 Stated Maturity Date"),
the stated maturity date with respect to the Class A-2 Notes is the Payment Date
in ____________ (the "Class A-2 Stated Maturity Date"), the stated maturity date
with respect to the Class A-3 Notes is the Payment Date in ___________ (the
"Class A-3 Stated Maturity Date"), the stated maturity date with respect to
Class the A-4 Notes is the Payment Date in _________ (the "Class A-4 Stated
Maturity Date"), the stated maturity date with respect to the Class B Notes is
the Payment Date in ___________ (the "Class B Stated Maturity Date"), the stated
maturity date with respect to the Class C Notes is the Payment Date in
__________ (the "Class C Stated Maturity Date"), the stated maturity date with
respect to the Class D Notes is the Payment Date in __________ (the "Class D
Stated Maturity Date"), the stated maturity date with respect to the Class E
Notes is the Payment Date in __________ (the "Class E Stated Maturity Date") and
the stated maturity date with respect to the Class R-1 and Class R-2 Notes is
____________ (the "Class R Stated Maturity Date", together with the Class A-1
Stated Maturity Date, the Class A-2 Stated Maturity Date, the Class A-3 Stated
Maturity Date, the Class A-4 Stated Maturity Date, the Class B Stated Maturity
Date, the Class C Stated Maturity Date, the Class D Stated Maturity Date and the
Class E Stated Maturity Date, the "Stated Maturity Dates").
Substitute Lease: as defined in Section 12 of the Assignment and
Servicing Agreement.
Terminated Lease: a lease that is terminated prior to its original
stated maturity (but not on account of casualty or a Lease default).
Termination Payment: a payment payable by a Lessee under a Lease upon
the early termination of such Lease (but not on account of a casualty or a Lease
default) which may be agreed upon by the Servicer, acting in the name of the
Issuer, and the Lessee in accordance with the provisions of Section 4.02 of the
Assignment and Servicing Agreement.
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Transaction Payment Amount: for each Required Deposit Date, the amount
of all Lease Payments, Lease Delinquency Payments, Non-Performing Lease
Payments, Casualty Payments, Termination Payments and other payments on or in
respect of a Lease received by the Servicer and deposited in the Collection
Account pursuant to Section 3.02(a) and reported by the Servicer for such
Required Deposit Date in accordance with Section 5.01(c) of the Assignment and
Servicing Agreement.
Trust Accounts: the Collection Account, the Reserve Account, the
Residual Account and the Liquidity Reserve Account.
Trust Estate: all money, instruments and other property subject to or
intended to be subject to the lien of this Indenture including all proceeds
thereof.
Trustee: the Person named as the "Trustee" in the first paragraph of
this instrument until a successor Person shall have become the Trustee pursuant
to the applicable provisions of this Indenture, and thereafter "Trustee" shall
mean such successor Person; provided, that the provisions of Section 7.07 and
Section 8.11, as applicable to any Person at any time serving as Trustee
hereunder, shall survive the termination of such Person's status as Trustee
hereunder and the succession of any other Person to such status.
Trust Indenture Act: the Trust Indenture Act of 1939 as in effect on
the date on which this Indenture is qualified under the Trust Indenture Act,
except as provided in Section 9.06 hereof.
Trust Order or Trust Request: a written order or request delivered to
the Trustee and signed in the name of the Issuer by an Authorized Officer.
Underwriting Agreement: the Underwriting Agreement, among the Issuer,
Copelco and Prudential Securities Incorporated ("Prudential").
Uniform Commercial Code: with respect to a particular jurisdiction, the
Uniform Commercial Code, as in effect from time to time in such jurisdiction, or
any successor statute thereto.
Warranty Lease: a Lease subject to repurchase by the Transferor as a
result of a breach of a representation or warranty in accordance with the
provisions of Section 4 of the Assignment and Servicing Agreement.
SECTION 1.02 Compliance Certificates and Opinions.
Upon any written application or request (or oral application with
prompt written or telecopied confirmation) by the Issuer to the Trustee to take
any action under any provision of this Indenture, other than any request that
(a) the Trustee authenticate the Notes specified in such request, (b) the
Trustee invest moneys in any of the Trust Accounts pursuant to the written
directions specified in such request, or (c) the Trustee pay moneys due and
payable to the Issuer hereunder to the Issuer's assignee specified in such
request, the Trustee shall require the Issuer to furnish to the Trustee an
Officers'
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Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and that the
request otherwise is in accordance with the terms of the Indenture, and an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that, in the case
of any such requested action as to which other evidence of satisfaction of the
conditions precedent thereto is specifically required by any provision of this
Indenture, no additional certificate or opinion need be furnished.
SECTION 1.03 Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Issuer delivered to the
Trustee may be based, insofar as it relates to legal matters, upon a certificate
or opinion of, or representations by, counsel, unless such officer knows, or in
the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such Officer's Certificate or opinion and
any Opinion of Counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or officers
of the Issuer as to such factual matters unless such officer or counsel knows,
or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to such matters are erroneous. Any
Opinion of Counsel may be based on the written opinion of other counsel, in
which event such Opinion of Counsel shall be accompanied by a copy of such other
counsel's opinion and shall include a statement to the effect that such counsel
believes that such counsel and the Trustee may reasonably rely upon the opinion
of such other counsel.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
Wherever in this Indenture, in connection with any application or
certificate or report to the Trustee, it is provided that the Issuer shall
deliver any document as a condition of the granting of such application, or as
evidence of compliance with any term hereof, it is intended that the truth and
accuracy, at the time of the granting of such application or at the effective
date of such certificate or report (as the case may be), of the facts and
opinions stated in such document shall in such case be conditions precedent to
the right of the Issuer to have such application granted or to the sufficiency
of such certificate or report. The foregoing shall not, however, be construed to
affect the Trustee's right to rely upon the truth and accuracy of any statement
or opinion contained in any such document as provided in Section 7.01(a)(ii).
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Whenever in this Indenture it is provided that the absence of the
occurrence and continuation of a Default or Event of Default or Servicer Event
of Default is a condition precedent to the taking of any action by the Trustee
at the request or direction of the Issuer, then, notwithstanding that the
satisfaction of such condition is a condition precedent to the Issuer's right to
make such request or direction, the Trustee shall be protected in acting in
accordance with such request or direction if it does not have knowledge of the
occurrence and continuation of such Default or Event of Default or Servicer
Event of Default. For all purposes of this Indenture, the Trustee shall not be
deemed to have knowledge of any Default or Event of Default nor shall the
Trustee have any duty to monitor or investigate to determine whether a default
has occurred (other than an Event of Default of the kind described in Section
6.01(a)) or Servicer Event of Default unless a Responsible Officer of the
Trustee shall have actual knowledge thereof or shall have been notified in
writing thereof by the Issuer, the Servicer, or any Noteholder.
SECTION 1.04 Acts of Noteholders, etc.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the
Issuer. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 7.01) conclusive in
favor of the Trustee and the Issuer, if made in the manner provided in this
Section 1.04.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.
(c) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the holder of any Note shall bind every future holder of
the same Note and the holder of every Note issued upon the registration of
transfer thereof or in exchange therefore or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Issuer in
reliance thereon, whether or not notation of such action is made upon such Note.
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(d) By accepting the Notes issued pursuant to this Indenture, each
Noteholder irrevocably appoints the Trustee hereunder as the special
attorney-in-fact for such Noteholder vested with full power on behalf of such
Noteholder to effect and enforce the rights of such Noteholder and the revisions
pursuant hereto for the benefit of such Noteholder; provided that nothing
contained in this Section 1.04(d) shall be deemed to confer upon the Trustee any
duty or power to vote on behalf of the Noteholders with respect to any matter on
which the Noteholders have a right to vote pursuant to the terms of this
Indenture.
SECTION 1.05 Notices, etc., to Trustee, Servicer, Issuer and Rating
Agencies.
Any request, demand, authorization, direction, notice, consent, waiver,
Act of Noteholders, or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with, the Trustee, the Issuer or
the Servicer shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage prepaid
or certified mail return receipt requested, or sent by private courier or
confirmed telecopy. Unless otherwise specifically provided herein, no such
request, demand, authorization, direction, notice, consent, waiver, Act of
Noteholders or other document shall be effective until received and any
provision hereof requiring the making, giving, furnishing, or filing of the same
on any date shall be interpreted as requiring the same to be sent or delivered
in such fashion that it will be received on such date. Any such request, demand,
authorization, direction, notice, consent, waiver, Act of Noteholders, or other
document shall be sent or delivered to the following addresses:
a) if to the Trustee, at the Corporate Trust Office, Attention:
Corporate Trust Administration (Number for telecopy: (▇▇▇) ▇▇▇-▇▇▇▇), or at any
other address previously furnished in writing to the Issuer and the Servicer by
the Trustee; or
b) if to the Issuer, at East Gate Center, ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇-5400, Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (Number for
telecopy: 609-273-9288), or at any other address previously furnished in writing
to the Trustee and the Issuer by the Servicer; or
c) if to the Servicer, at East Gate Center, ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇-5400, Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (Number for
telecopy: 609-273-9288), or at any other address previously furnished in writing
to the Trustee and the Issuer by the Servicer.
d) if to the Rating Agencies: to Duff & ▇▇▇▇▇▇ Credit Rating Co., ▇▇
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: Structured Finance
Monitoring Group, to Fitch IBCA, Inc., ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇
▇▇▇▇▇, Attention: ABS Surveillance, and to ▇▇▇▇▇'▇ Investors Service, Inc., ▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention: ABS Monitoring Department.
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SECTION 1.06 Notice to Noteholders; Waiver.
(a) Where this Indenture provides for notice to Noteholders of any
event, or the mailing of any report to Noteholders, such notice or report shall
be sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid or certified mail return receipt
requested, or sent by private courier or confirmed telecopy to each Noteholder
affected by such event or to whom such report is required to be mailed, at its
address as it appears in the Note Register, not later than the latest date, and
not earlier than the earliest date, prescribed for the giving of such notice or
the mailing of such report. In any case where a notice or report to Noteholders
is mailed, neither the failure to mail such notice or report, nor any defect in
any notice or report so mailed, to any particular Noteholder shall affect the
sufficiency of such notice or report with respect to other Noteholders. Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Noteholders shall be filed with the Trustee, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon
such waiver.
(b) In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to mail or send notice to
Noteholders, in accordance with Section 1.06(a), of any event or any report to
Noteholders when such notice or report is required to be delivered pursuant to
any provision of this Indenture, then such notification or delivery as shall be
made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder.
SECTION 1.07 Effect of Headings and Table of Contents.
The Article and Section headings herein and in the Table of Contents
are for convenience only and shall not affect the construction hereof.
SECTION 1.08 Successors and Assigns.
All covenants and agreements in this Indenture by the Issuer or the
Trustee shall bind its respective successors and permitted assigns, whether so
expressed or not.
SECTION 1.09 GOVERNING LAW.
THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. THIS INDENTURE IS SUBJECT TO
THE TRUST INDENTURE ACT OF 1939 AND SHALL BE GOVERNED THEREBY AND CONSTRUED IN
ACCORDANCE THEREWITH.
SECTION 1.10 Legal Holidays.
In any case where any Payment Date or the Stated Maturity or any other
date on which principal of or interest on any Note is proposed to be paid shall
not be a
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Business Day, then (notwithstanding any other provision of this Indenture or of
the Notes) such payment need not be made on such date, but may be made on the
next succeeding Business Day with the same force and effect as if made on such
Payment Date, Stated Maturity, or other date on which principal of or interest
on any Note is proposed to be paid, provided that no interest shall accrue for
the period from and after such Payment Date, Stated Maturity, or any other date
on which principal of or interest on any Note is proposed to be paid, as the
case may be, until such next succeeding Business Day.
SECTION 1.11 Execution in Counterparts.
This Indenture may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
SECTION 1.12 Inspection.
The Issuer agrees that, on reasonable prior notice, it will permit the
representatives of the Trustee or any Noteholder holding Notes, or a beneficial
interest therein, evidencing at least 25% of the Outstanding Principal Amount of
the Receivable Notes or 25% of the Outstanding Principal Amount of the Class R
Notes, during the Issuer's normal business hours, to examine all of the books of
account, records, reports and other papers of the Issuer, to make copies thereof
and extracts therefrom, to cause such books to be audited by independent
accountants selected by the Issuer and reasonably acceptable to the Trustee or
such Noteholder, as the case may be, and to discuss its affairs, finances and
accounts with its officers, employees and independent accountants (and by this
provision the Issuer hereby authorizes its accountants to discuss with such
representatives such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested for the purpose of reviewing
or evaluating the financial condition or affairs of the Issuer or the
performance of and compliance with the covenants and undertakings of the Issuer
in this Indenture, the Assignment and Servicing Agreement or any of the other
documents referred to herein or therein. Any expense incident to the exercise by
the Trustee at any time or any Noteholder during the continuance of any Default
or Event of Default, of any right under this Section 1.12 shall be borne by the
Issuer.
SECTION 1.13 Survival of Representations and Warranties.
The representations, warranties and certifications of the Issuer made
in this Indenture or in any certificate or other writing delivered by the Issuer
pursuant hereto shall survive the authentication and delivery of the Notes
hereunder.
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ARTICLE II.
THE NOTES
SECTION 2.01 General Provisions.
(a) The Notes shall consist of $__________ principal amount of Class
A-1 Notes, $___________ principal amount of Class A-2 Notes, $___________
principal amount of Class A-3 Notes, $___________ principal amount of Class A-4
Notes, $___________ principal amount of Class B Notes, $___________ principal
amount of Class C Notes, $___________ principal amount of Class D Notes,
$__________ principal amount of Class E Notes, $__________ principal amount of
Class R-1 Notes, and $___________ principal amount of Class R-2 Notes and the
forms thereof and of the Trustee's certificate of authentication shall be in
substantially the forms set forth in Exhibit A hereto, with such appropriate
insertions, omissions, substitutions, and other variations as are required or
permitted by this Indenture.
The aggregate principal amount of Notes which may be authenticated and
delivered under this Indenture is limited to $___________ of Receivable Notes
and $___________ of Class R Notes, except for Notes authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Section 2.03, 2.04, or 9.05. The Notes shall be issuable only in
registered form and only in minimum denominations of at least $1,000,000 with
respect to the Class A Notes, the Class B Notes, the Class C Notes, the Class D
Notes, the Class E Notes and the Class R Notes; provided that the foregoing
shall not restrict or prevent the transfer in accordance with Section 2.03 of
any Note having a remaining Outstanding Principal Amount of other than an
integral multiple of $1,000,000, or the issuance of a single Note of each Class,
with a denomination less than $1,000,000.
(b) For each Payment Date, payments of principal (the "Principal
Payments") on the Notes will be made in accordance with Sections 3.03(b),
3.04(b) or 6.06, as applicable. Except as otherwise provided in Section 6.02, no
part of the principal of any Note shall be paid prior to the Payment Date on
which such principal is due in accordance with the preceding provisions of this
Section 2.01(b), except that the Issuer may redeem the Notes in their entirety
(including any unpaid interest due), without premium, as of any Payment Date on
which the Discounted Present Value of the Performing Leases is less than or
equal to five percent (5%) of the aggregate Discounted Present Value of the
Leases as of the Cut-Off Date (after giving effect to all Principal Payments on
such Payment Date). The Issuer will give notice of any such redemption to each
Noteholder and the Trustee at least 30 days before the Payment Date fixed for
such prepayment by certified mail return receipt requested, hand delivery or
overnight courier. Notice of such prepayment having been so given, the remaining
unpaid principal as of the Payment Date fixed for prepayment together with all
interest accrued and unpaid to such Payment Date, shall become due and payable
on such Payment Date.
(c) For each Payment Date, the interest due and payable (the "Interest
Payments") with respect to the Class A-1 Notes, Class A-2 Notes, Class A-3
Notes, Class
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A-4 Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E
Notes, the Class R-1, and the Class R-2 Notes will be the interest that has
accrued on the respective Notes since the last Payment Date or, in the case of
the first Payment Date, since the Issuance Date for the Class A-1 Notes and
February 15, 1999 for all other Notes, at the Class A-1 Interest Rate, Class A-2
Interest Rate, Class A-3 Interest Rate, Class A-4 Interest Rate, Class B
Interest Rate, Class C Interest Rate, Class D Interest Rate, Class E Interest
Rate, Class R-1 Interest Rate and Class R-2 Interest Rate respectively, applied
to the then Outstanding Principal Amounts of the Class A-1 Notes, Class A-2
Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, the Class C Notes, Class
D Notes, Class E Notes, Class R-1 Notes, and Class R-2 Notes respectively, on
the preceding Payment Date. With respect to the Class A-1 Notes, the interest
will be calculated on the basis of a year of 360 days and the actual number of
days in the related interest accrual period. With respect to all other Notes,
the interest will be calculated on the basis of a year of 360 days comprised of
twelve 30-day months. Interest Payments will be made in accordance with Sections
3.03(b), 3.04(b) and 6.06, as applicable.
(d) All payments made with respect to any Note shall be made in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts and shall be applied first
to the interest then due and payable on such Notes, then to the principal
thereof, and finally to premium, if any.
(e) All Class A-1 Notes issued under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of authentication
and delivery, all in accordance with the terms and provisions of this Indenture.
Payments of principal and interest on the Class A-1 Notes shall be made pro rata
among all Outstanding Class A-1 Notes, without preference or priority of any
kind.
(f) All Class A-2 Notes issued under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of authentication
and delivery, all in accordance with the terms and provisions of this Indenture.
Payments of principal and interest on the Class A-2 Notes shall be made pro rata
among all Outstanding Class A-2 Notes, without preference or priority of any
kind.
(g) All Class A-3 Notes issued under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of authentication
and delivery, all in accordance with the terms and provisions of this Indenture.
Payments of principal and interest on the Class A-3 Notes shall be made pro rata
among all Outstanding Class A-3 Notes, without preference or priority of any
kind.
(h) All Class A-4 Notes issued under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of authentication
and delivery, all in accordance with the terms and provisions of this Indenture.
Payments of principal and
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interest on the Class A-4 Notes shall be made pro rata among all Outstanding
Class A-4 Notes, without preference or priority of any kind.
(i) The Class B Notes shall be subordinated to the Class A Notes to the
extent set forth herein. All Class B Notes issued under this Indenture shall be
in all respects equally and ratably entitled to the benefits hereof without
preference, priority or distinction on account of the actual time or times of
authentication and delivery, all in accordance with the terms and provisions of
this Indenture. Payments of principal and interest on the Class B Notes shall be
made pro rata among all Outstanding Class B Notes, without preference or
priority of any kind.
(j) The Class C Notes shall be subordinated to the Class A Notes and
the Class B Notes to the extent set forth herein. All Class C Notes issued under
this Indenture shall be in all respects equally and ratably entitled to the
benefits hereof without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the
terms and provisions of this Indenture. Payments of principal and interest on
the Class C Notes shall be made pro rata among all Outstanding Class C Notes,
without preference or priority of any kind.
(k) The Class D Notes shall be subordinated to the Class A Notes, the
Class B Notes and Class C Notes to the extent set forth herein. All Class D
Notes issued under this Indenture shall be in all respects equally and ratably
entitled to the benefits hereof without preference, priority or distinction on
account of the actual time or times of authentication and delivery, all in
accordance with the terms and provisions of this Indenture. Payments of
principal and interest on the Class D Notes shall be made pro rata among all
Outstanding Class D Notes, without preference or priority of any kind.
(l) The Class E Notes shall be subordinated to the Class A Notes, the
Class B Notes, the Class C Notes and the Class D Notes to the extent set forth
herein. All Class E Notes issued under this Indenture shall be in all respects
equally and ratably entitled to the benefits hereof without preference, priority
or distinction on account of the actual time or times of authentication and
delivery, all in accordance with the terms and provisions of this Indenture.
Payments of principal and interest on the Class E Notes shall be made pro rata
among all Outstanding Class E Notes, without preference or priority of any kind.
(m) Except as provided in Section 6.06, the Class R Notes shall not be
subordinated to the Class A Notes, Class B Notes, Class C Notes, Class D Notes
or Class E Notes, but shall have priority with respect to any Residual
Realizations received hereunder. The Class R-2 Notes shall be subordinated to
the Class R-1 Notes to the extent set forth herein.
(n) All Class R-1 Notes issued under this Indenture shall be in all
respects equally and ratably entitled to the benefits hereof without preference,
priority or distinction on account of the actual time or times of authentication
and delivery, all in accordance with the terms and provisions of this Indenture.
Payments of principal and
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interest on the Class R-1 Notes shall be made pro rata among all Outstanding
Class R-1 Notes, without preference or priority of any kind.
(o) The Class R-2 Notes shall be subordinated to the Class R-1 Notes to
the extent set forth herein. All Class R-2 Notes issued under this Indenture
shall be in all respects equally and ratably entitled to the benefits hereof
without preference, priority or distinction on account of the actual time or
times of authentication and delivery, all in accordance with the terms and
provisions of this Indenture. Payments of principal and interest on the Class
R-2 Notes shall be made pro rata among all Outstanding Class R-2 Notes, without
preference or priority of any kind.
SECTION 2.02 Execution, Authentication, Delivery, and Dating.
(a) The Notes shall be manually executed by the Issuer.
(b) Any Note bearing the signature of an individual who was at the time
of execution thereof a proper officer of the Issuer shall bind the Issuer,
notwithstanding that such individual ceases to hold such office prior to the
authentication and delivery of such Note or did not hold such office at the date
of such Note.
(c) No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication substantially in the form provided for herein,
executed by the Trustee by manual signature, and such certificate upon any Note
shall be conclusive evidence, and the only evidence, that such Note has been
duly authenticated and delivered hereunder. Each Note shall be dated the date of
its authentication.
(d) The Notes may from time to time be executed by the Issuer and
delivered to the Trustee for authentication together with a Trust Request to the
Trustee directing the authentication and delivery of such Notes and thereupon
the same shall be authenticated and delivered by the Trustee in accordance with
such Trust Request.
SECTION 2.03 Transfer and Exchange.
(a) The Issuer shall cause to be kept at the Corporate Trust Office a
register (the "Note Register") in which, subject to such reasonable regulations
as the Trustee may prescribe, the Issuer shall provide for the registration of
Notes and of transfers of Notes. The Trustee is hereby appointed "Note
Registrar" for the purpose of registering Notes and transfers of Notes as herein
provided.
No transfer of any Class E Note may be made unless that transfer is
made pursuant to an effective registration statement under the Securities Act
and an effective registration or a qualification under applicable state
securities laws, or is made in a transaction that does not require such
registration or qualification because the transfer satisfies one of the
following: (i) such transfer is in compliance with Rule 144A under the
Securities Act, to a person who the transferor reasonably believes is a
Qualified Institutional Buyer (as defined in Rule 144A) that is purchasing for
its own account or for the account of a Qualified Institutional Buyer and to
whom notice is given that such
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transfer is being made in reliance upon Rule 144A under the Securities Act as
certified by such transferee in a letter in the form of Exhibit B hereto; (ii)
after the appropriate holding period, such transfer is pursuant to an exemption
from registration under the Securities Act provided by Rule 144 under the
Securities Act; (iii) such transfer is to a transferee who is an "Accredited
Investor" (as defined in Rule 501 of the Securities Act) in a transaction exempt
from the registration requirements of the Securities Act, in each case in
accordance with any applicable securities laws of any State of the United States
or (iv) such transfer is otherwise exempt from the registration requirements of
the Securities Act. If any resale or other transfer of (a) the Class R Notes is
proposed to be made to an Accredited Investor pursuant to clause (iii) above or
(b) the Class E Notes is proposed, the Trustee will require, in order to assure
compliance with such laws, that the Class E Noteholder's or Class R Noteholder's
prospective transferee referred to in the preceding clauses (iii) or (iv)
deliver an investment letter certifying to the Issuer and the Trustee as to the
facts surrounding such transfer in the form of Exhibit B hereto. Except in the
case of a transfer of Class E Notes or Class R Notes to a transferee referred to
in the preceding clause (i) or, in general, a transfer that is to be made after
three years from the Issuance Date, the Trustee shall require an opinion of
counsel satisfactory to it to the effect that such transfer may be made pursuant
to an exemption from the Securities Act without such registration (which opinion
of counsel shall not be an expense of the Trustee or the Servicer or the
Issuer). None of the Issuer, the Servicer or the Trustee is obligated to
register or qualify the Class E Notes or the Class R Notes under the Securities
Act or any other securities law or to take any action not otherwise required
under this Indenture to permit the transfer of any Class E Note or Class R Note
without registration.
The Trustee shall not register the transfer of any Note (other than the
transfer of a Note to the nominee of the Clearing Agency) unless the transferee
has executed and delivered to the Trustee a certification to the effect that
either (i) the transferee is not (A) an employee benefit plan (as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")) that is subject to the provisions of Title I of ERISA or (B) a plan
(as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as
amended (the "Code")) that is subject to Section 4975 of the Code (each of the
foregoing, a "Benefit Plan"), and is not acting on behalf of or investing the
assets of a Benefit Plan, or (ii) the transferee's acquisition and continued
holding of the Note will be covered by a U.S. Department of Labor Prohibited
Transaction Class Exemption. Each transferee of a book-entry Note shall be
deemed to make one of the foregoing representations.
(b) Each transferee of Class R Notes represented by an interest in a
Rule 144A Global Note will be deemed to have represented and agreed as follows
(terms used in this paragraph that are defined in Rule 144A under the Securities
Act are used herein as defined therein):
(1) The transferee (A) is a "qualified institutional buyer", (B) is
aware that the sale of the Class R Notes to it is being made in reliance on
the exemption from registration provided by Rule 144A under the Securities
Act and (C) is acquiring the Class R Notes for its own account or for one or
more accounts, each of which is a QIB, and as to each of which the transferee
exercises
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sole investment discretion, and in a principal amount of not less than
$1,000,000, for the transferee and for each such account. The transferee has
such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of its investment in the Class R
Notes, and the transferee and any accounts for which it is acting are each
able to bear the economic risk of the transferee's or its investment.
(2) The transferee understands that the Class R Notes are being
offered only in a transaction not involving any public offering in the United
States within the meaning of the Securities Act, the Class R Notes have not
been and will not be registered under the Securities Act, and, if in the
future the transferee decides to offer, resell, pledge or otherwise transfer
the Class R Notes, such Class R Notes may be offered, resold, pledged or
otherwise transferred only in accordance with the legend on such Class R
Notes described above. The transferee acknowledges that no representation is
made by the Issuer as to the availability of any exemption under the
Securities Act or any state securities laws for resale of the Class R Notes.
(3) The transferee has carefully read and understands the Class R
Private Placement Memorandum, including, without limitation, the "Risk
Factor" section therein, and has based its decision to purchase the Class R
Notes upon the information contained therein and not upon any information, if
any, provided to it by any of the Issuer, the Placement Agent or any other
Person. The transferee is not purchasing the Class R Notes with a view to the
resale, distribution or other disposition thereof in violation of the
Securities Act. The transferee understands that an investment in the Class R
Notes involves certain risks, including the risk of loss of a substantial
part of its investment under certain circumstances. The transferee has had
access to such financial and other information concerning the Issuer and the
Class R Notes as it deemed necessary or appropriate in order to make an
informed investment decision with respect to its purchase of the Class R
Notes, including an opportunity to ask questions of and request information
from the Placement Agent.
(4) In connection with the transfer of the Class R Notes: (i) none
of the Issuer, the Placement Agent or the Servicer is acting as a fiduciary
or financial or investment adviser for the transferee; (ii) the transferee is
not relying (for purposes of making any investment decision or otherwise)
upon any advice, counsel or representations (whether written or oral) of the
Issuer, the Placement Agent or the Servicer other than any in a current
private placement memorandum for such Class R Notes and any representations
expressly set forth in a written agreement with such party; (iii) none of the
Issuer, the Placement Agent or the Servicer has given to the transferee
(directly or indirectly through any other person) any assurance, guarantee,
or representation whatsoever as to the expected or projected success,
profitability, return, performance, result, effect, consequence, or benefit
(including legal, regulatory, tax, financial, accounting, or otherwise) of
the Indenture or documentation for the Class R Notes; (iv) the transferee has
consulted with its own legal, regulatory, tax, business, investment,
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financial, and accounting advisers to the extent it has deemed necessary, and
it has made its own investment decisions (including decisions regarding the
suitability of any transaction pursuant to the Indenture) based upon its own
judgment and upon any advice from such advisers as it has deemed necessary
and not upon any view expressed by the Issuer; (v) the transferee has
determined that the rates, prices or amounts and other terms of the purchase
and sale of the Class R Notes reflect those in the relevant market for
similar transactions; (vi) the transferee is acquiring the Class R Notes with
a full understanding of all of the terms, conditions and risks thereof
(economic and otherwise), and it is capable of assuming and willing to assume
(financially and otherwise) those risks; and (vii) the transferee is a
sophisticated investor.
(5) The transferee understands that the Class R Notes offered in
reliance on Rule 144A will bear the legend set forth in the form of Class R
Notes attached hereto as Exhibit A, and will be represented by one or more
Rule 144A Global Notes. The Class R Notes may not at any time be held by or
on behalf of U.S. persons that are not QIBs or institutional accredited
investors. Before any interest in a Rule 144A Global Note may be offered,
resold, pledged or otherwise transferred to a person who takes delivery in
the form of an interest in a Definitive Note, the transferor will be required
to provide the Trustee with a written certification (in the form provided as
Exhibit B hereto) as to compliance with the transfer restrictions.
(6) The transferee will not, at any time, offer to buy or offer to
sell the Class R Notes by any form of general solicitation or advertising,
including, but not limited to, any advertisement, article, notice or other
communication published in any newspaper, magazine or similar medium or
broadcast over television or radio or seminar or meeting whose attendees have
been invited by general solicitations or advertisings.
(7) The transferee by its purchase of the Class R Notes, represents
that either (i) it is not a Benefit Plan and is not acting on behalf of or
investing the assets of a Benefit Plan or (ii) the transferee's acquisition
and continued holding of such Class R Notes will be covered by a U.S.
Department of Labor Prohibited Transaction Class Exemption.
(8) The transferee acknowledges that the Issuer, the Placement
Agent and others will rely upon the truth and accuracy of the foregoing
acknowledgments, representations and agreements and agrees that, if any of
the acknowledgments, representations or warranties deemed to have been made
by it by or in connection with its purchase of Class R Notes is no longer
accurate, it shall promptly notify the Issuer and the Placement Agent. If the
transferee is acquiring any Class R Notes as a fiduciary or agent for one or
more investor accounts, it shall be deemed to have represented that it has
sole investment discretion with respect to each such account and that it has
full power to make the foregoing acknowledgments, representations and
agreements on behalf of each such account.
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(c) Subject to Section 2.03(a), upon surrender for
registration of transfer of any Note at the office of the Issuer designated
pursuant to Section 8.02 for such purpose, the Issuer shall execute and the
Trustee upon request shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like aggregate original principal amount. The Trustee
shall make a notation on any such new Note of the amount of principal, if any,
that has been paid on such Note.
(d) All Notes issued upon any registration of transfer or
exchange of Notes shall be the valid obligations of the Issuer, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the Notes
surrendered upon such registration of transfer or exchange.
(e) Every Note presented or surrendered for registration of
transfer or for exchange shall (if so required by the Issuer or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Trustee duly executed, by the holder thereof
or his attorney duly authorized in writing.
(f) No service charge shall be made for any registration of
transfer or exchange of Notes, but the Issuer or the Trustee may require payment
by the transferor of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 9.05 not involving
any transfer.
SECTION 2.04. Mutilated, Destroyed, Lost and Stolen Notes.
(a) If any mutilated Note is surrendered to the Trustee, the
Issuer shall execute and the Trustee shall authenticate and deliver in exchange
therefore a replacement Note of like tenor and principal amount and bearing a
number not contemporaneously outstanding.
(b) If there shall be delivered to the Issuer and the Trustee
(i) evidence to their satisfaction of the destruction, loss or theft of any Note
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of actual
notice to the Issuer or the Trustee that such Note has been acquired by a bona
fide purchaser, the Issuer shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Note, a
replacement Note of like tenor and principal amount and bearing a number not
contemporaneously outstanding.
(c) In case the final installment of principal on any such
mutilated, destroyed, lost or stolen Note has become or will at the next Payment
Date become due and payable, the Issuer in its discretion may, instead of
issuing a replacement Note, pay such Note.
(d) Upon the issuance of any replacement Note under this
Section, the Issuer or the Trustee may require the payment by the Noteholder of
a sum sufficient to
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cover any tax or other governmental charge that may be imposed as a result of
the issuance of such replacement Note.
(e) Every replacement Note issued pursuant to this Section
2.04 in lieu of any destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the destroyed,
lost or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Notes duly issued hereunder.
(f) The provisions of this Section 2.04 are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Notes.
SECTION 2.05. Book-Entry Registration of Class A Notes, Class
B Notes, Class C Notes, Class D Notes and Class R Notes.
Each of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class A-4 Notes, the Class B Notes, the Class C Notes, the Class D Notes, the
Class R-1 Notes, and the Class R-2 Notes, upon original issuance, shall be
issued in the form attached as Exhibit A and delivered to The Depository Trust
Company, the initial Clearing Agency, by, or on behalf of, the Issuer. Each of
the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B
Notes, Class C Notes, Class D Notes, the Class R-1 Notes and the Class R-2 Notes
shall initially be registered on the Note Register in the name of Cede & Co.,
the nominee of The Depository Trust Company, as the initial Clearing Agency, and
no Class A-1 Note Owner, Class A-2 Note Owner, Class A-3 Note Owner, Class A-4
Note Owner, Class B Note Owner, Class C Note Owner, Class D Note Owner, Class
R-1 Note Owner, or Class R-2 Note Owner will receive a definitive note
representing such Note Owner's interest, except as provided in Section 2.07.
Unless and until Definitive Class A-1 Notes, Definitive Class A-2 Notes,
Definitive Class A-3 Notes, Definitive Class A-4 Notes, Definitive Class B
Notes, Definitive Class C Notes, Definitive Class D Notes, Definitive Class R-1
Notes and/or Definitive Class R-2 Notes ("Definitive Notes") have been issued to
the applicable Note Owners pursuant to Section 2.07:
(a) the provisions of this Section 2.05 shall be in full force
and effect with respect to the Class A-1 Notes, Class A-2 Notes, Class A-3
Notes, Class A-4 Notes or the Class B Notes, Class C Notes, Class D Notes or
Class R Notes, as the case may be;
(b) the Issuer, the Servicer and the Trustee may deal with the
Clearing Agency and the Clearing Agency Participants for all purposes with
respect to the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4
Notes, Class B Notes, Class C Notes, Class D Notes or Class R Notes, as the case
may be (including the making of distributions on the Class A-1 Notes, Class A-2
Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes, Class D
Notes and Class R Notes, as the case may be), as the authorized representatives
of the respective Note Owners;
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(c) to the extent that the provisions of this Section 2.05
conflict with any other provisions of this Indenture, the provisions of this
Section 2.05 shall control; and
(d) the rights of the respective Note Owners shall be
exercised only through the Clearing Agency and the Clearing Agency Participants
and shall be limited to those established by law and agreements between such
respective Note Owners and the Clearing Agency and/or the Clearing Agency
Participants. Pursuant to the Depository Agreement, unless and until Definitive
Notes, are issued pursuant to Section 2.07, the initial Clearing Agency will
make book-entry transfers among the Clearing Agency Participants and receive and
transmit distributions of principal and interest on the related Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes,
Class D Notes, Class R-1 Notes and Class R-2 Notes, as the case may be, to such
Clearing Agency Participants.
For purposes of any provision of this Indenture requiring or
permitting actions with the consent of, or at the direction of, holders of Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes,
Class C Notes, Class D Notes, Class R-1 Notes or Class R-2 Notes, as the case
may be, evidencing a specified percentage of the Outstanding Principal Amount of
the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, the
Class B Notes, Class C Notes, Class D Notes, Class R-1 Notes or Class R-2 Notes,
respectively, such direction or consent may be given by Note Owners (acting
through the Clearing Agency and the Clearing Agency Participants) owning Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes,
Class C Notes, Class D Notes, Class R-1 Notes or Class R-2 Notes evidencing the
requisite percentage of the Outstanding Principal Amount of such Notes,
respectively.
SECTION 2.06. Notice to Clearing Agency.
Whenever notice or other communication to the Class A-1
Noteholders, Class A-2 Noteholders, Class A-3 Noteholders, Class A-4
Noteholders, Class B Noteholders, Class C Noteholders, Class D Noteholders,
Class R-1 Noteholders or Class R-2 Noteholders is required under this Agreement,
unless and until Definitive Notes shall have been issued to the related Note
Owners pursuant to Section 2.07, the Trustee shall give all such notices and
communications specified herein to be given to such Noteholders to the
applicable Clearing Agency which shall give such notices and communications to
the related Class A-1 Note Owners, Class A-2 Note Owners, Class A-3 Note Owners,
Class A-4 Note Owners, Class B Note Owners, Class C Note Owners, Class D
Noteholders, Class R-1 Noteholders or Class R-2 Noteholders in accordance with
its applicable rules, regulations and procedures.
SECTION 2.07. Definitive Class A Notes, Class B Notes, Class C
Notes, Class D Notes and Class R Notes.
(a) If (a) (i) the Issuer advises the Trustee in writing that
the Clearing Agency is no longer willing or able to properly discharge its
responsibilities under the
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Depository Agreement with respect to the Class A-1 Notes, Class A-2 Notes, Class
A-3 Notes, Class A-4 Notes, the Class B Notes, Class C Notes, Class D Notes, the
Class R-1 Notes and/or the Class R-2 Notes and (ii) the Trustee or the Issuer is
unable to locate a qualified successor, (b) the Issuer, at its option, advises
the Trustee in writing that it elects to terminate the book-entry system with
respect to the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4
Notes, the Class B Notes, Class C Notes, Class D Notes, the Class R-1 Notes
and/or the Class R-2 Notes through the Clearing Agency or (c) after the
occurrence of a Servicer Event of Default, Class A-1 Note Owners, Class A-2 Note
Owners, Class A-3 Note Owners, Class A-4 Note Owners, Class B Note Owners, Class
C Note Owners, Class D Note Owners, Class R-1 Note Owners and Class R-2 Note
Owners with respect to the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class A-4 Notes, Class B Notes, Class C Notes, Class D Notes, Class R-1 Notes
and Class R-2 Notes evidencing not less than 50% of the aggregate unpaid
Outstanding Principal Amount of the Class A-1 Notes, Class A-2 Notes, Class A-3
Notes, Class A-4 Notes, Class B Notes, Class C Notes, Class D Notes, Class R-1
Notes and Class R-2 Notes, respectively, advise the Trustee and the Clearing
Agency through the Clearing Agency Participants in writing that the continuation
of a book-entry system with respect to the Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes, Class D Notes,
Class R-1 Notes or Class R-2 Notes, respectively, through the Clearing Agency is
no longer in the best interests of the Class A-1 Note Owners, Class A-2 Note
Owners, Class A-3 Note Owners, Class A-4 Note Owners, Class B Note Owners, Class
C Note Owners, Class D Note Owners, Class R-1 Note Owners or Class R-2 Note
Owners, as the case may be, the Trustee shall notify all Class A-1 Note Owners,
Class A-2 Note Owners, Class A-3 Note Owners, Class A-4 Note Owners, Class B
Note Owners, Class C Note Owners, Class D Note Owners, Class R-1 Note Owners and
Class R-2 Note Owners with respect to the Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes, Class D Notes,
Class R-1 Notes and Class R-2 Notes, respectively, through the Clearing Agency,
of the occurrence of any such event and of the availability of Definitive Notes,
to Class A-1 Note Owners, Class A-2 Note Owners, Class A-3 Note Owners, Class
A-4 Note Owners, Class B Note Owners, Class C Note Owners, Class D Note Owners,
Class R-1 Note Owners or Class R-2 Note Owners, respectively, requesting the
same. Upon surrender to the Trustee of the Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes, Class D Notes,
Class R-1 Notes or Class R-2 Notes, as the case may be, by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency for
registration, the Issuer shall execute and the Trustee shall authenticate and
deliver the relevant Definitive Notes. Neither the Issuer nor the Trustee shall
be liable for any delay in delivery of such instructions and may conclusively
rely on, and shall be protected in relying on, such instructions. Upon the
issuance of Definitive Notes, as the case may be, all references herein to
obligations imposed upon or to be performed by the Clearing Agency shall be
deemed to be imposed upon and performed by the Trustee, to the extent applicable
with respect to such Definitive Notes, and the Trustee shall recognize the
holders of the relevant Definitive Notes as Noteholders hereunder.
(b) The Class R Notes sold to QIBs will be represented by a
permanent global note in fully registered form without coupons (the "Rule 144A
Global Note") deposited with a custodian for, and registered in the name of, a
nominee of DTC.
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In the case of Class R Notes that are Definitive Notes initially issued to an
Accredited Investor or in exchange for the Rule 144A Global Notes, such
Definitive Notes will bear, and be subject to the legend set forth in the form
of Class R Notes attached hereto as Exhibit A. The holder of such Definitive
Note may transfer such Definitive Note by surrendering it at the office or
agency maintained by the Trustee. Upon the transfer, exchange or replacement of
Definitive Notes bearing such legend, or upon specific written request for
removal of the legend on a Definitive Note, the Trustee will deliver only
Definitive Notes that bear such legend, or will refuse to remove such legend, as
the case may be, unless there is delivered to the Trustee such satisfactory
evidence, which may include an opinion of counsel, as may reasonably be required
by the Trustee that neither such legend nor the restrictions on transfer set
forth therein are required to ensure compliance with the provisions of the
Securities Act.
Definitive Notes will not be eligible for clearing or
settlement through DTC, Euroclear or Cedel.
SECTION 2.08. Payment of Interest and Principal; Rights
Preserved.
(a) Any installment of interest or principal, payable on any
Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Person in whose name such Note was
registered at the close of business on the Record Date for such Payment Date by
wire transfer of federal funds to the account and number specified in the Note
Register on such Record Date for such Person or, if no such account or number is
so specified, then by check mailed to such Person's address as it appears in the
Note Register on such Record Date.
(b) All reductions in the principal amount of a Note effected
by payments of installments of principal made on any Payment Date shall be
binding upon all holders of such Note and of any Note issued upon the
registration of transfer thereof or in exchange therefore or in lieu thereof,
whether or not such payment is noted on such Note. All payments on the Notes
shall be paid without any requirement of presentment but each holder of any Note
shall be deemed to agree, by its acceptance of the same, to surrender such Note
at the Corporate Trust Office against payment of the final installment of
principal of such Note.
SECTION 2.09. Persons Deemed Owners.
Prior to due presentment of a Note for registration of
transfer, the Issuer, the Trustee, and any agent of the Issuer or the Trustee
may treat the registered Noteholder as the owner of such Note for the purpose of
receiving payment of principal of and interest on such Note and for all other
purposes whatsoever, whether or not such Note be overdue, and neither the
Issuer, the Trustee, nor any agent of the Issuer or the Trustee shall be
affected by notice to the contrary.
SECTION 2.10. Cancellation.
All Notes surrendered for registration of transfer or exchange
or following final payment shall, if surrendered to any Person other than the
Trustee, be delivered to
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the Trustee and shall be promptly cancelled by it. The Issuer may at any time
deliver to the Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes cancelled as
provided in this Section, except as expressly permitted by this Indenture. All
cancelled Notes held by the Trustee may be disposed of in the normal course of
its business or as directed by a Trust Order.
SECTION 2.11. Noteholder Lists.
The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Noteholders and shall otherwise comply with Section 312(a) of the
Trust Indenture Act. In the event the Trustee no longer serves as the Note
Registrar, the Issuer (or any other obligor upon the Notes) shall furnish to the
Trustee at least five Business Days before each interest payment date (and in
all events in intervals of not more than 6 months) and at such other times as
the Trustee may request in writing a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of Noteholders,
and the Issuer shall otherwise comply with Section 312(a) of the Trust Indenture
Act.
SECTION 2.12. Treasury Securities.
In determining whether the Noteholders of the required
Outstanding Principal Amount of the Notes have concurred in any direction,
waiver or consent, Notes owned by the Issuer, any other obligor upon the Notes
or an Affiliate of the Issuer shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes which
a Responsible Officer knows are so owned shall be so disregarded.
ARTICLE III
ACCOUNTS; INVESTMENT OF MONEYS; COLLECTION
AND APPLICATION OF MONEYS; REPORTS
SECTION 3.01. Trust Accounts; Investments by Trustee.
(a) On or before the Issuance Date, the Trustee shall
establish in the name of the Trustee for the benefit of the Noteholders and the
Trust to the extent of their interests therein as provided in this Indenture and
in the Assignment and Servicing Agreement, the following accounts, which
accounts shall be Eligible Accounts maintained at the Corporate Trust Office:
(i) Collection Account;
(ii) Reserve Account;
(iii) Residual Account; and
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(iv) Liquidity Reserve Account
Subject to the further provisions of this Section 3.01(a), the Trustee shall,
upon receipt or upon transfer from another account, as the case may be, deposit
into such accounts all amounts received by it which are required to be deposited
therein in accordance with the provisions of this Indenture. All such amounts
and all investments made with such amounts, including all income and other gain
from such investments, shall be held by the Trustee in such accounts as part of
the Trust Estate as herein provided, subject to withdrawal by the Trustee in
accordance with, and for the purposes specified in the provisions of, this
Indenture.
(b) The Trustee shall hold in trust but shall not be required
to deposit in any account specified in Section 3.01(a) any payment received by
it until such time as the Trustee shall have identified to its reasonable
satisfaction the nature of such payment and, on the basis thereof, the proper
account or accounts into which such payment is to be deposited. In determining
into which of the accounts, if any, referred to above any amount received by the
Trustee is to be deposited, the Trustee may conclusively rely (in the absence of
bad faith on the part of the Trustee) on the advice of the Servicer. Unless the
Trustee is advised differently in writing by the Lessee making the payment or by
the Servicer in writing (with the Servicer's instruction controlling), the
Trustee shall assume that any amount remitted to it by such Lessee is to be
deposited into the Collection Account pursuant to Section 3.03. The Trustee may
establish from time to time such deadline or deadlines as it shall determine are
reasonable or necessary in the administration of the Trust Estate after which
all amounts received or collected by the Trustee on any day shall not be deemed
to have been received or collected until the next succeeding Business Day.
(c) Neither the Servicer, Trustee nor the institution then
acting as Trustee shall have any right of set-off with respect to the Collection
Account, the Reserve Account, the Residual Account or the Liquidity Reserve
Account, or any investment therein.
(d) So long as no Event of Default shall have occurred and be
continuing, all or a portion of the amounts in the Trust Accounts, shall be
invested and reinvested by the Trustee pursuant to a Trust Order or Servicer
Order in one or more Eligible Investments. Subject to the restrictions on the
maturity of investments set forth in Section 3.01(f), each such Trust Order or
Servicer Order may authorize the Trustee to make the specific Eligible
Investments set forth therein, to make Eligible Investments from time to time
consistent with the general instructions set forth therein, or to make specific
Eligible Investments pursuant to instructions received in writing or by
telegraph or facsimile transmission from the employees or agents of the Issuer
or the Servicer, as the case may be, identified therein, in each case in such
amounts as such Trust Order or Servicer Order shall specify. The Issuer agrees
to report as income for financial reporting and tax purposes (to the extent
reportable) all investment earnings on amounts in the Collection Account, the
Reserve Account, the Residual Account, or the Liquidity Reserve Account. Each of
the Issuer and the Servicer agrees to give appropriate and timely investment
directions to the Trustee so that there will not be more than two Business
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Days in any one calendar year at the end of which funds in the Trust Accounts
are not invested, directly or indirectly, pursuant to a Trust Order or a
Servicer Order in Eligible Investments that mature on or after the opening of
business on the next Business Day.
(e) In the event that either (i) the Issuer or the Servicer,
as the case may be, shall have failed to give investment directions to the
Trustee by 9:30 A.M., New York City time on any Business Day on which there may
be uninvested cash or (ii) an Event of Default shall be continuing, the Trustee
shall promptly invest and reinvest the funds then in the Collection Account, the
Reserve Account, the Residual Account or the Liquidity Reserve Account, as the
case may be, to the fullest extent practicable in one or more Eligible
Investments. All investments made by the Trustee shall mature no later than the
maturity date therefore permitted by Section 3.01(f) unless the Trustee shall
have received written confirmation from each Rating Agency, that the liquidation
of such Eligible Investments prior to their respective maturity dates, will not
result in the reduction or withdrawal of such Rating Agency's then-current
rating of the Notes.
(f) Unless payable on demand, no investment of any amount held
in the Trust Accounts shall mature later than the Business Day immediately
preceding the Payment Date which is scheduled to occur immediately following the
date of investment. All income or other gains (net of losses) from the
investment of moneys deposited in the Trust Accounts shall be deposited by the
Trustee in such account immediately upon receipt.
(g) Any investment of any funds in the Trust Accounts and any
sale of any investment held in such accounts, shall be made under the following
terms and conditions:
(i) each such investment shall be made in the name of the
Trustee or in the name of a nominee of the Trustee, in each case in such manner
as shall be necessary to maintain the identity of such investments as assets of
the Trust Estate;
(ii) any certificate or other instrument evidencing such
investment shall be delivered directly to the Trustee or its agent and the
Trustee shall have sole possession of such instrument, and all income on such
investment; and
(iii) the proceeds of any sale of an investment shall be
remitted by the purchaser thereof directly to the Trustee for deposit in the
account in which such investment was held.
(h) If any amounts are needed for disbursement from the Trust
Accounts and sufficient uninvested funds are not collected and available therein
to make such disbursement, in the absence of a Trust Order or Servicer Order for
the liquidation of investments held therein in an amount sufficient to provide
the required funds, the Trustee shall select and cause to be sold or otherwise
converted to cash a sufficient amount of the investments in such accounts.
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(i) The Trustee shall not in any way be held liable by reason
of any insufficiency in the Trust Accounts resulting from losses on investments
made in accordance with the provisions of this Section 3.01 (but the institution
serving as Trustee shall at all times remain liable for its own debt
obligations, if any, constituting part of such investments). The Trustee shall
not be liable for any investment made by it in accordance with this Section 3.01
on the grounds that it could have made a more favorable investment or a more
favorable selection for sale of an investment.
SECTION 3.02. Collection of Moneys.
(a) On or before the Issuance Date, the Servicer shall
designate an address for the receipt directly from Lessees of all Lease
Payments, Casualty Payments and Termination Payments on or in respect of each
Lease (which payments may be aggregated by the Lessee paying the same with
Similar Transaction Payments and Other Lease Payments and which designated
address may be the same designated address to which such Similar Transaction
Payments and Other Lease Payments may be sent). The Servicer shall, within two
Business Days of receipt of any payment at such designated address, deposit such
payment (excluding Residual Realizations) in the Collection Account and Residual
Realizations in the Residual Account. All Lease Payments, Casualty Payments,
Termination Payments and other payments relating to a Lease received at such
designated address and so deposited shall constitute part of the Trust Estate.
Any Similar Transaction Payments and Other Lease Payments from time to time
received at such designated address or otherwise received by the Servicer or
deposited in the Collection Account shall not constitute part of the Trust
Estate.
(b) The Trustee shall from time to time, in accordance with
instructions of the Servicer and the provisions of the Similar Transaction
Agreements, withdraw from the Collection Account any amounts in the Collection
Account which the Servicer advises the Trustee are (i) Similar Transaction
Payments and apply such payments in accordance with the Similar Transaction
Agreements and (ii) Other Lease Payments. Prior to such payment, the Trustee
shall have rights to and an interest in such amounts to the extent (but only to
the extent) it is determined that such amounts actually constitute Transaction
Payment Amounts.
(c) If at any time the Issuer shall receive any payment on or
in respect of any Lease, it shall hold such Payment in trust for the benefit of
the Trustee and the holders of the Notes, shall segregate such payment from the
other property of the Issuer, and shall, promptly (but in no event later than
the next following Business Day) upon receipt, deliver such payment in the form
received to the Trustee.
SECTION 3.03. Collection Account; Payments.
(a) The Servicer shall within two Business Days of receipt (a
"Required Deposit Date") deposit the following funds, as received, into the
Collection Account:
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(i) Lease Payments (net of any Excess Copy Charges and Fee Per
Scan Charges);
(ii) recoveries from Non-Performing Leases to the extent
Copelco has not substituted Substitute Leases for such Non-Performing Leases
(except to the extent required to reimburse unreimbursed Servicer Advances);
(iii) late charges on delinquent Lease payments not advanced
by the Servicer;
(iv) proceeds (other than Residual Warranty Payments) from
repurchases by Copelco of Leases as a result of breaches of representations and
warranties by Copelco to the extent Copelco has not substituted Substitute
Leases for such Leases;
(v) proceeds from investment of funds in the Collection
Account and the Reserve Account;
(vi) Casualty Payments (other than Residual Casualty
Payments);
(vii) Servicer Advances;
(viii) Termination Payments (other than Residual Prepayments)
to the extent the Issuer does not reinvest such Termination Payments in
Additional Leases; and
(ix) payments from the Transferor to effect a redemption of
the Receivable Notes pursuant to Section 2.01(b).
(b) Unless the Notes have been declared due and payable
pursuant to Section 6.02 and moneys collected by the Trustee are being applied
in accordance with Section 6.06, Available Funds on deposit in the Collection
Account and the amounts, if any, deposited into the Collection Account from the
Reserve Account in accordance with the provisions of Section 3.05 shall be
withdrawn by the Servicer on or before each Payment Date from the Collection
Account, in the amounts required, for application in the following order of
priority, to make the following required payments:
(i) to pay the Servicing Fee;
(ii) to reimburse unreimbursed Servicer Advances in respect of
a prior Payment Date;
(iii) concurrently and pro rata: (a) to make Interest Payments
on the Class A-1 Notes; (b) to make Interest Payments on the Class A-2 Notes;
(c) to make Interest payments on the Class A-3 Notes; (d) to make Interest
payments on the Class A-4 Notes;
(iv) to make Interest Payments on the Class B Notes;
(v) to make Interest Payments on the Class C Notes;
(vi) to make Interest Payments on the Class D Notes;
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(vii) to make Interest Payments on the Class E Notes;
(viii) to make the Class A Principal Payment (i) to the Class
A-1 Noteholders only, until the Outstanding Principal Amount on the Class A-1
Notes is reduced to zero, then (ii) to the Class A-2 Noteholders only, until the
Outstanding Principal Amount on the Class A-2 Notes is reduced to zero, then
(iii) to the Class A-3 Noteholders only, until the Outstanding Principal Amount
on the Class A-3 Notes is reduced to zero and finally, (iv) to the Class A-4
Noteholders until the Outstanding Principal Amount on the Class A-4 Notes is
reduced to zero;
(ix) to pay the Class B Principal Payment to the Class B
Noteholders;
(x) to pay the Class C Principal Payment to the Class C
Noteholders;
(xi) to pay the Class D Principal Payment to the Class D
Noteholders;
(xii) to pay the Class E Principal Payment to the Class E
Noteholders;
(xiii) to pay the Additional Principal, if any, as an
additional reduction of principal, to the Class A Noteholders then receiving the
Class A Principal Payment until the Outstanding Principal Amount as provided in
clause (viii) above on all of the Class A Notes has been reduced to zero,
thereafter to the Class B Noteholders as an additional reduction of principal
until the Outstanding Class B Principal Amount has been reduced to zero,
thereafter to the Class C Noteholders until the Outstanding Class C Principal
Amount has been reduced to zero; thereafter to the Class D Noteholders until the
Outstanding Class D Principal ▇▇▇▇▇▇ has been reduced to zero; and thereafter to
the Class E Noteholders until the Outstanding Class E Principal Amount has been
reduced to zero;
(xiv) to make a deposit to the Reserve Account in an amount
equal to the excess of the Required Reserve Amount over the Available Reserve
Amount; and
(xv) to the Issuer, the balance, if any.
(c) Notwithstanding the foregoing, the Trustee shall retain in
the Collection Account an amount equal to all Lease Payments received that were
due since the prior Due Period, and all Casualty Payments and Termination
Payments (excluding Residual Realizations) received by the Trustee after the
Determination Date for such Payment Date and shall not distribute any such
amounts on such Payment Date. If at any time any amount or portion thereof
previously distributed pursuant to this Section 3.03(c) shall have been
recovered, or shall be subject to recovery, in any proceeding with respect to
the Issuer or otherwise, then for purposes of determining future distributions
pursuant to this Section 3.03(c) such amount or portion thereof shall be deemed
to have not been previously so distributed.
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SECTION 3.04. The Residual Account; Payments.
(a) The Servicer shall within two Business Days of receipt
deposit the following funds, as received into the Residual Account:
(i) Residual Realizations;
(ii) proceeds from investment of funds in the Residual
Account and the Liquidity Reserve Account;
(iii) Residual Servicer Advances; and
(iv) payments from the Transferor to effect a redemption of
the Class R Notes pursuant to Section 2.01(b).
(b) Unless the Notes have been declared due and payable
pursuant to Section 6.02 and moneys collected by the Trustee are being applied
in accordance with Section 6.06, amounts on deposit in the Residual Account and
the amounts, if any, deposited into the Residual Account from the Liquidity
Reserve Account in accordance with the provisions of Section 3.06 shall be
withdrawn by the Servicer on or before each Payment Date from the Residual
Account, in the amounts required, for application in the following order of
priority, to make the following required payments:
(i) to pay the Residual Servicing Fee;
(ii) to reimburse unreimbursed Residual Servicer Advances in
respect of a prior Payment Date;
(iii) to make Interest Payments on the Class R-1 Notes;
(iv) to make Interest Payments on the Class R-2 Notes;
(v) to make a deposit to the Liquidity Reserve Account in
an amount equal to the excess of the Required Liquidity Reserve over the amount
then on deposit therein;
(vi) to pay principal on the Class R-1 Notes until such time
as the Outstanding Class R-1 Principal Amount is reduced to zero;
(vii) to pay principal on the Class R-2 Notes until such time
as the Outstanding Class R-2 Principal Amount is reduced to zero; and
(viii) to the Issuer, the balance, if any.
SECTION 3.05. The Reserve Account.
(a) On the Issuance Date, the Issuer has made an initial
deposit of $____________ into the Reserve Account. On each Payment Date, the
Trustee shall transfer to the Reserve Account from the Collection Account such
amounts as shall be required by Section 3.05(b).
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(b) If by 12:00 noon, New York City time, one Business Day
preceding any Payment Date, the amount of collected funds on deposit in the
Collection Account available for distribution under Section 3.03(b) is
insufficient to permit on such Payment Date all distributions required by
Section 3.03(b)(i) through 3.03(b)(xii) (such payments, the "Required Payments"
and such shortfall, an "Available Funds Shortfall"), then, to the extent of the
Available Reserve Amount on deposit in the Reserve Account, the Trustee shall
transfer, not later than the end of such Business Day, from the Reserve Account
to the Collection Account such amount to the extent available as shall be
necessary to make on such Payment Date all Required Payments.
(c) In the event that after giving effect to all the
disbursements required to be made on any Payment Date, the Available Reserve
Amount exceeds the Required Reserve Amount, the Trustee shall transfer, not
later than the end of business on such Payment Date, an amount equal to such
excess to the Issuer.
(d) Upon termination of this Indenture, any balance remaining
in the Reserve Account, after all obligations to the Noteholders hereunder have
been fully satisfied, shall be paid to reimburse the Trustee for any amounts
owing to it arising from the performance of its obligations under this Indenture
and, then, to the Issuer.
SECTION 3.06. The Liquidity Reserve Account.
(a) On the Issuance Date, the Issuer has made an initial
deposit of $____________ into the Liquidity Reserve Account for the sole benefit
of the Class R Notes. On each Payment Date, the Trustee shall transfer to the
Liquidity Reserve Account from the Residual Account such amounts as shall be
required by Section 3.06(b).
(b) If by 12:00 noon, New York City time, one Business Day
preceding any Payment Date, the amount of collected funds on deposit in the
Residual Account available for distribution under Section 3.04(b) is
insufficient to permit on such Payment Date all distributions required by
Section 3.04(b)(i) through 3.04(b)(iv) then, to the extent of the amount on
deposit in the Liquidity Reserve Account, the Trustee shall transfer, not later
than the end of such Business Day, from the Liquidity Reserve Account to the
Residual Account such amount as shall be necessary to make such distribution on
such Payment Date.
(c) If on any Payment Date, the aggregate of the balance in
the Residual Account and the balance in the Liquidity Reserve Account is greater
than the outstanding balance of the Class R Notes and interest payable thereon
and the Residual Servicing Fee payable on such Payment Date, the Trustee shall
withdraw all amounts from the Liquidity Reserve Account and deposit them in the
Residual Account for distribution to the Class R-1 Noteholders and Class R-2
Noteholders on such date.
(d) If on any Payment Date, the balance in the Liquidity
Reserve Account after giving effect to all distributions required by Section
3.04(b)(i) through 3.04(b)(iv) is greater than the Required Liquidity Reserve
the Trustee shall withdraw
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such excess from the Liquidity Reserve Account and deposit them in the Residual
Account for distribution to the Class R Noteholder on such Payment Date.
(e) Upon termination of this Indenture, any balance remaining
in the Liquidity Reserve Account, after all obligations to the Class R
Noteholders hereunder have been fully satisfied, shall be paid to reimburse the
Trustee for any amounts owing to it arising from the performance of its
obligations under this Indenture and, then, to the Issuer.
SECTION 3.07. Reports by Trustee; Notices of Certain Payments.
(a) The Trustee shall within two Business Days after the
request of the Issuer, the Servicer or any Receivable Noteholder, deliver to the
requesting person a written report setting forth the amounts on deposit in the
Collection Account and the Reserve Account and identifying the investments
included therein.
(b) Within five Business Days following each Payment Date or
as promptly as possible thereafter but in no event later than two Business Days
following the receipt of the Monthly Report from the Servicer pursuant to
Section 5.01 of the Assignment and Servicing Agreement, the Trustee shall mail
to the Issuer, Copelco, each Rating Agency and the Servicer and make available
to each Receivable Noteholder the following information:
(i) the principal amount of all Outstanding Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes,
Class D Notes, and Class E Notes respectively.
(ii) the amount of Interest Payments and payments in reduction
of principal paid on such Payment Date with respect to all Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, Class C Notes,
Class D Notes and Class E Notes respectively, and with respect to the Receivable
Notes held by each Receivable Noteholder;
(iii) the amount of the Servicing Fee and unreimbursed
Servicer Advances paid on such Payment Date pursuant to Section 3.03(b)(i) and
Section 3.03(b)(ii); and
(iv) the amount on deposit in the Collection Account and the
Reserve Account, in each case after giving effect to all of the withdrawals and
applications or transfers required on or before such Payment Date pursuant to
Sections 3.02, 3.03 and 3.05.
(c) The Trustee shall within two Business Days after the
request of the Issuer, the Servicer, or any Class R Noteholder, deliver to the
requesting person a written report setting forth the amounts on deposit in the
Residual Account and the Liquidity Reserve Account, and identifying the
investments included therein.
(d) Within five Business Days following each Payment Date or
as promptly as possible thereafter but in no event later than two Business Days
following
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the receipt of the Monthly Report from the Servicer pursuant to Section 5.01 of
the Assignment and Servicing Agreement, the Trustee shall mail to the Issuer,
Copelco, each Rating Agency and the Servicer and make available to each Class R
Noteholder the following information:
(i) the principal amount of all Outstanding Class R-1 Notes
and Class R-2 Notes, respectively;
(ii) the amount of Interest Payments and payments in reduction
of principal paid on such Payment Date with respect to all Class R-1 Notes and
Class R-2 Notes, respectively, and with respect to the Class R Notes held by
each Class R Noteholder;
(iii) the amount of the Residual Servicing Fee and
unreimbursed Residual Servicer Advances paid on such Payment Date pursuant to
Section 3.04(b)(i) and Section 3.04(b)(ii); and
(iv) the amount on deposit in the Residual Account and the
Liquidity Reserve Account, in each case after giving effect to all the
withdrawals and applications or transfers required on or before such Payment
Date pursuant to Sections 3.04 and 3.06.
(e) With each report of the Trustee furnished pursuant to this
Section 3.07 following any Payment Date, the Trustee shall enclose a copy of the
relevant Servicing Report and the report required to be furnished to the Trustee
by the Servicer following such Payment Date pursuant to Section 6.01 of the
Assignment and Servicing Agreement or, if such reports have not been received, a
statement to such effect.
(f) Upon request of a Noteholder, the Trustee will provide
information as to the Outstanding Principal Amount of each Class of Notes.
SECTION 3.08. Trustee May Rely on Certain Information from
Copelco and Servicer.
Pursuant to Sections 4.01, 4.05, 5.01 and 6.02 of the
Assignment and Servicing Agreement and Section 3.02 through 3.07 hereof, the
Servicer is required to furnish to the Trustee from time to time certain
information and make various calculations which are relevant to the performance
of the Trustee's duties in this Article Three and in Article Four of this
Indenture. The Trustee shall be entitled to rely in good faith on such
information or calculations in the performance of its duties hereunder (i)
unless and until a Responsible Officer of the Trustee has actual knowledge, or
is advised by any Noteholder (either in writing or orally with prompt written or
telecopied confirmation), that such information or calculations is or are
incorrect, or (ii) unless there is a manifest error in any such information.
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ARTICLE IV
RELEASE OF LEASES AND EQUIPMENT
SECTION 4.01. Release of Equipment.
Subject to the satisfaction of the provisions of Section 4.02,
the Trustee shall release Equipment from the Lien of the Indenture upon the
occurrence of any of the following events: (a) the sale of such Equipment
pursuant to Section 4.03(b) of the Assignment and Servicing Agreement (unless
retained by the Issuer for re-leasing), (b) the expiration of the related Lease
upon the payment of the final Lease Payment due and payable under such Lease and
the deposit of any Residual Realization in respect thereof, (c) the repurchase
of the related Lease in accordance with the provisions of Section 5 of the
Assignment and Servicing Agreement, (d) the addition of an Additional Lease to
the extent new Equipment is provided in replacement of such Equipment in
accordance with the provisions of Section 11 of the Assignment and Servicing
Agreement and (e) upon the substitution of a Substitute Lease related to such
Equipment in accordance with the provisions of Section 11 of the Assignment and
Servicing Agreement. The proceeds (excluding Residual Realizations) of any such
sale, repurchase or releasing shall be deposited in the Collection Account for
disposition under this Indenture. The Residual Realizations shall be deposited
in the Residual Account for disposition under this Indenture.
SECTION 4.02. Release of Leases Upon Final Lease Payment.
In the event that the Trustee shall have received notice
(either in writing or orally with prompt written or telecopied confirmation)
from the Servicer that the Trustee has received from amounts paid by the Lessee,
the Lease Repurchase Amount, or from the proceeds of the Equipment subject to
any Lease (i) the final Lease Payment due and payable under such Lease and the
deposit of any Residual Realization in respect thereof, (ii) a Termination
Payment in respect of such Lease, and the deposit of any Residual Realization in
respect thereof, (iii) a Lease Repurchase Amount in respect of such Lease, and
the deposit of any Residual Realization in respect thereof, (iv) a Casualty
Payment under such Lease (and, following such final Lease Payment, Casualty
Payment, Lease Repurchase Amount or Termination Payment, no further payments on
or in respect of such Lease are or will be due and payable), or (iv) the full
amount of any recoveries with respect to such Non-Performing Lease, such Lease
shall be released from the lien of this Indenture.
SECTION 4.03. Execution of Documents.
The Trustee shall promptly execute and deliver such documents,
including without limitation partial releases and termination statements (which
shall be furnished to the Trustee by the Issuer), and take such other actions as
the Issuer, by Trust Request, may reasonably request (including the return of
any Lease which has been released) to fully effectuate the release from this
Indenture of any Lease and interests in the related Equipment required to be so
released pursuant to Sections 4.01 or 4.02.
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ARTICLE V
SERVICER EVENTS OF DEFAULT; SUBSTITUTE SERVICER
SECTION 5.01. Servicer Events of Default.
If a Servicer Event of Default shall have occurred and be
continuing, the Trustee shall, upon the written request of the holders of
66-2/3% of the then Outstanding Principal Amount of the Notes, give notice in
writing to the Servicer of the termination of all of the rights and obligations
of the Servicer under the Assignment and Servicing Agreement (but none of
Copelco's obligations pursuant to Section 4 of the Assignment and Servicing
Agreement, which shall survive such termination). On and after the giving of
such written notice, all rights and obligations of the Servicer under the
Assignment and Servicing Agreement, including, without limitation, the
Servicer's right thereunder to receive the Servicing Fee, but none of the
Servicer obligations pursuant to Section 4 thereof, shall pass to, be vested in,
and be assumed by the Trustee, and the Trustee shall be authorized to, and
shall, execute and deliver, on behalf of the 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
termination and of such passing, vesting, and assumption; provided that in
performing the duties of the Servicer under the Assignment and Servicing
Agreement the Trustee shall at all times be deemed to be acting as the Trustee
hereunder and shall be entitled to the full benefit of all the protections,
benefits, immunities and indemnities provided in this Indenture for or with
respect to the Trustee, including without limitation those set forth in Article
Seven hereof.
SECTION 5.02. Substitute Servicer.
Notwithstanding the provisions of Section 5.01, the Trustee
may, if it shall be unwilling to continue to act as the successor to the
Servicer in accordance with Section 5.01, or shall, if it is unable to continue
to so act or is so instructed in writing by the holders of 66-2/3% of the then
Outstanding Principal Amount of the Notes, appoint a successor to the Servicer
in accordance with the provisions of Section 8.03 of the Assignment and
Servicing Agreement.
ARTICLE VI
EVENTS OF DEFAULT; REMEDIES
SECTION 6.01. Events of Default.
"Event of Default," wherever used herein, means any one of the
following (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):
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(a) default in making of Principal Payments at the Stated
Maturity of the relevant Receivable Notes or Interest Payments on the Receivable
Notes when such become due and payable;
(b) the entry by a court having jurisdiction in the premises
of (i) a decree or order for relief in respect of the Issuer in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization, or other similar law or (ii) a decree or order adjudging the
Issuer a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment, or composition of or in respect
of the Issuer under any applicable federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator, or other
similar official of the Issuer or of any substantial part of its property, or
ordering the winding up or liquidation of its affairs, and the continuance of
any such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 60 consecutive days; or
(c) the commencement by the Issuer of a voluntary case or
proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization, or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Issuer in an involuntary case or
proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization, or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any applicable federal
or state law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator, or similar official of the Issuer or of any
substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or the Issuer's failure to pay its debts generally as they
become due, or the taking of corporate action by the Issuer in furtherance of
any such action.
SECTION 6.02. Acceleration of Maturity; Rescission and
Annulment.
(a) If an Event of Default occurs, the unpaid principal amount
of the Notes shall automatically become due and payable at par together with all
accrued and unpaid interest thereon, without presentment, demand, protest or
notice of any kind, all of which are hereby waived by the Issuer.
(b) At any time after such an Event of Default has occurred
and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter in this Article provided, the holders of Notes
evidencing 66-2/3% of the then Outstanding Principal Amount of the Notes by
written notice to the Issuer and the Trustee, may rescind and annul such
declaration and its consequences if the Issuer has paid or deposited with the
Trustee a sum sufficient to pay:
(A) all Principal Payments on any Class A
Notes, Class B Notes, Class C Notes, Class D Notes,
Class E Notes and Class
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R Notes which have become due otherwise than by such
declaration of acceleration and interest thereon from
the date when the same first became due until the
date of payment or deposit at the appropriate Note
Interest Rate,
(B) all Interest Payments due with respect
to any Class A Notes, Class B Notes, Class C Notes,
Class D Notes, Class E Notes and Class R Notes and,
to the extent that payment of such interest is
lawful, interest upon overdue interest from the date
when the same first became due until the date of
payment or deposit at a rate per annum equal to the
appropriate Note Interest Rates, and
(C) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its
agents and counsel;
No such rescission shall affect any subsequent Event of Default or impair any
right consequent thereon.
SECTION 6.03. Remedies.
(a) If an Event of Default occurs and is continuing of which a
Responsible Officer has actual knowledge, the Trustee shall immediately give
notice to each Noteholder as set forth in Section 7.02.
(b) Following any acceleration of the Notes, the Trustee shall
have all of the rights, powers and remedies with respect to the Trust Estate as
are available to secured parties under the Uniform Commercial Code or other
applicable law. Such rights, powers and remedies may be exercised by the Trustee
in its own name as trustee of an express trust.
(c) If an Event of Default specified in Section 6.01(a) occurs
and is continuing, the Trustee is authorized to recover judgment in its own name
and as trustee of an express trust against the Issuer for the whole amount of
principal and interest remaining unpaid.
(d) In exercising its rights and obligations under this
Section 6.03, the Trustee may sell the Trust Estate (other than the Liquidity
Reserve Account); provided that if the Event of Default involves other than
non-payment of principal or interest on the Notes, then such sale must be for an
amount greater than or equal to amounts due under clauses first through fourth
in Section 6.06 unless directed otherwise by the holders of 66 - 2/3% of the
then Outstanding Principal Amount of the Notes. Neither the Trustee nor any
Noteholder shall have any rights against the Issuer other than to enforce the
Lien against the Leases and the Equipment and to sell the Trust Estate.
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SECTION 6.04. Trustee Shall File Proofs of Claim.
(a) In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition,
or other judicial proceeding relative to the Issuer, Copelco, the Servicer or
any other obligor upon the Notes or the other obligations secured hereby or
relating to the property of the Issuer, Copelco, the Servicer or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made
any demand on the Issuer, Copelco or the Servicer for the payment of overdue
principal or interest or any such other obligation) shall by intervention in
such proceeding or otherwise,
(i) file and prove a claim for the whole amount of principal
and interest owing and unpaid in respect of the Notes and any other obligation
secured hereby and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Noteholders allowed in such judicial
proceeding, and
(ii) collect and receive any moneys or other property payable
or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator, or
other similar official in any such judicial proceeding is hereby authorized by
each Noteholder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Noteholders
to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07.
(b) Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any
Noteholder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any holder thereof or to authorize the
Trustee to vote in respect of the claim of any Noteholder in any such
proceeding.
SECTION 6.05. Trustee May Enforce Claims Without Possession of
Notes.
All rights of action and claims under this Indenture or the
Notes may be prosecuted and enforced by the Trustee without the possession of
any of the Notes or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and
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counsel, be for the ratable benefit of the holders of the Notes in respect of
which such judgment has been recovered.
SECTION 6.06. Application of Money Collected.
Any money collected by the Trustee pursuant to this Article
following an Event of Default, and any moneys that may then be held (excluding
amounts on deposit in the Liquidity Reserve Account which will be used, on the
Payment Date immediately following an Event of Default for the payment of
interest and principal to Class R Noteholders in accordance with Clause fourth
below) or thereafter received by the Trustee (other than the Liquidity Reserve
Account) shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of the entire amount due on account
of principal or interest, upon presentation of the Notes and surrender thereof:
first to the payment of all costs and expenses of collection
incurred by the Trustee and the Noteholders (including the reasonable
fees and expenses of any counsel to the Trustee and the Noteholders);
second if the person then acting as Servicer under the
Assignment and Servicing Agreement is not Copelco Capital or an
Affiliate of Copelco Capital, to the payment of all Servicer's Fees
then due to such person;
third first, pro-rata to the payment of all accrued and unpaid
interest on the Outstanding Class A-1 Principal Amount, Outstanding
Class A-2 Principal Amount, Outstanding Class A-3 Principal Amount and
Outstanding Class A-4 Principal Amount, respectively, to the date of
payment thereof, including (to the extent permitted by applicable law)
interest on any overdue installment of interest and principal from the
maturity of such installment to the date of payment thereof at the rate
per annum equal to the Class A-1 Note Interest Rate, Class A-2 Note
Interest Rate and Class A-3 Note Interest Rate and Class A-4 Note
Interest Rate, respectively, second, to the payment of all accrued and
unpaid interest on the Outstanding Class B Principal Amount to the date
of payment thereof, including (to the extent permitted by applicable
law) interest on any overdue installment of interest and principal from
the maturity of such installment to the date of payment thereof at the
rate per annum equal to the Class B Note Interest Rate, third, to the
payment of all accrued and unpaid interest on the Outstanding Class C
Principal Amount to the date of payment thereof, including (to the
extent permitted by applicable law) interest on any overdue installment
of interest and principal from the maturity of such installment to the
date of payment thereof at the rate per annum equal to the Class C Note
Interest Rate, fourth, to the payment of all accrued and unpaid
interest on the Outstanding Class D Principal Amount to the date of
payment thereof, including (to the extent permitted by applicable law)
interest on any overdue installment of interest and principal from the
maturity of such installment to the date of payment thereof at the rate
per annum equal to the Class D Note Interest Rate, fifth, to the
payment of all accrued and unpaid interest on the Outstanding Class E
Principal Amount to
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the date of payment thereof, including (to the extent permitted by
applicable law) interest on any overdue installment of interest and
principal from the maturity of such installment to the date of payment
thereof at the rate per annum equal to the Class E Note Interest Rate,
sixth, to the payment of the Outstanding Class A-1 Principal ▇▇▇▇▇▇,
seventh, to the payment of the Outstanding Class A-2 Principal Amount,
Outstanding Class A-3 Principal Amount and Outstanding Class A-4
Principal Amount pro-rata, eighth, to the payment of the Outstanding
Class B Principal Amount, ninth, to the payment of the Outstanding
Class C Principal Amount, tenth, to the payment of the Outstanding
Class D Principal ▇▇▇▇▇▇ and eleventh, to the payment of the
Outstanding Class E Principal Amount; provided, that the Noteholders
may allocate such payments for interest, principal and premium at their
own discretion, except that no such allocation shall affect the
allocation of such amounts or future payments received by any other
Noteholder;
fourth first to the payment of all accrued and unpaid interest
in the Outstanding Class R-1 Principal Amount, second to the payment of
all accrued and unpaid interest on the Outstanding Class R-2 Principal
Amount, third to the payment of the Outstanding Class R-1 Principal
Amount and fourth to the payment of the Outstanding Class R-2 Principal
Amount;
fifth to the payment of amounts then due the Trustee
hereunder;
sixth if the person then acting as Servicer is Copelco Capital
or an Affiliate of Copelco Capital, to the payment of all Servicer's
Fees then due to such Person; and
seventh to the payment of the remainder, if any, to the Issuer
or any other Person legally entitled thereto.
On the Payment Date following an Event of Default, amounts in
the Liquidity Reserve Account shall be used to make any amounts not
paid under item fourth above and thereafter in the priority first
through seventh above.
SECTION 6.07. Limitation on Suits.
None of the Noteholders shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:
(i) such Noteholder has previously given written notice to the
Trustee of a continuing Event of Default;
(ii) the holders of not less than 66-2/3% of the then
Outstanding Principal Amount of the Notes shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder;
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(iii) such Noteholder or Noteholders have offered to the
Trustee adequate indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request;
(iv) the Trustee for 30 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such proceeding; and
(v) so long as any of the Notes remain Outstanding, no
direction inconsistent with such written request has been given to the Trustee
during such 30-day period by the holders of 66-2/3% of the then Outstanding
Principal Amount of the Notes;
it being understood and intended that no one or more Noteholders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb, or prejudice the rights of any other
Noteholders, or to obtain or to seek to obtain priority or preference over any
other Noteholders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all the
Noteholders. It is further understood and intended that so long as any portion
of the Notes remains Outstanding, Copelco shall not have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture (other
than for the enforcement of Sections 3.03(b), 3.04(b), 3.05, 3.06, 4.01 and 4.02
hereof) or for the appointment of a receiver or trustee (including, without
limitation, a proceeding under the Bankruptcy Code), or for any other remedy
hereunder. Nothing in this Section 6.07 shall be construed as limiting the
rights of otherwise qualified Noteholders to petition a court for the removal of
a Trustee pursuant to Section 7.09(h) hereof.
SECTION 6.08. Unconditional Right of Noteholders to Receive
Principal and Interest.
Notwithstanding any other provision in this Indenture, other
than the provisions hereof limiting the right to recover amounts due on the
Notes to recoveries from the property of the Trust Estate, the holder of any
Note shall have the absolute and unconditional right to receive payment of the
principal of and interest on such Note on the Maturities for such payments,
including the Stated Maturity, and to institute suit for the enforcement of any
such payment, and such rights shall not be impaired without the consent of such
Noteholder.
SECTION 6.09. Restoration of Rights and Remedies.
If the Trustee or any Noteholder has instituted any proceeding
to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Noteholder, then and in every such case, subject to any
determination in such proceeding, the Issuer, the Trustee and the Noteholders
shall be restored severally and respectively to their former positions hereunder
and thereafter all rights and remedies of the Trustee and the Noteholders
continue as though no such proceeding had been instituted.
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SECTION 6.10. Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost, or stolen Notes in Section 2.04 (f),
no right or remedy herein conferred upon or reserved to the Trustee or to the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
SECTION 6.11. Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any holder of any
Note to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article
or by law to the Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or by the
Noteholders, as the case may be.
SECTION 6.12. Control by Noteholders.
Except as may otherwise be provided in this Indenture, until
such time as the conditions specified in Sections 10.01(i) and (ii) have been
satisfied in full, the holders of 66-2/3% of the then Outstanding Principal
Amount of the Notes shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee. Notwithstanding the foregoing,
(i) no such direction shall be in conflict with any rule of
law or with this Indenture;
(ii) the Trustee shall not be required to follow any such
direction which the Trustee reasonably believes might result in any personal
liability on the part of the Trustee for which the Trustee is not adequately
indemnified; and
(iii) the Trustee may take any other action deemed proper by
the Trustee which is not inconsistent with any such direction; provided that the
Trustee shall give notice of any such action to each Noteholder.
SECTION 6.13. Residual Notes Events of Default.
(a) Upon a default in making of Principal Payments at the
Stated Maturity of the relevant Class R Notes or Interest Payments on the Class
R Notes when such become due and payable (a "Residual Event of Default"), the
unpaid principal amount of the Class R Notes shall automatically become due and
payable at par together with all accrued and unpaid interest thereon, without
presentment, demand, protest or notice of any kind, all of which are hereby
waived by the Issuer.
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(b) At any time after such a Residual Event of Default has
occurred and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the holders of
Class R Notes evidencing 66-2/3% of the then Outstanding Principal Amount of the
Class R Notes by written notice to the Issuer and the Trustee, may rescind and
annul such declaration and its consequences if the Issuer has paid or deposited
with the Trustee a sum sufficient to pay all Principal Payments on the Class R
Notes which have become due otherwise than by such declaration of acceleration
and interest thereon from the date when the same first became due until the date
of payment or deposit at the appropriate Note Interest Rate all Interest
Payments due with respect to any Class R Notes and, to the extent that payment
of such interest is lawful, interest upon overdue interest from the date when
the same first became due until the date of payment or deposit at a rate per
annum equal to the appropriate Note Interest Rates, and all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements, and advances of the Trustee, its agents and counsel. No such
rescission shall affect any subsequent Residual Event of Default or impair any
right consequent thereon.
(c) If a Residual Event of Default occurs and is continuing of
which a Responsible Officer has actual knowledge, the Trustee shall immediately
give notice to each Noteholder as set forth in Section 7.02. Following any
acceleration of the Class R Notes, the Trustee shall have all of the rights,
powers and remedies with respect to the Residual Realizations as are available
to secured parties under the Uniform Commercial Code or other applicable law.
Such rights, powers and remedies may be exercised by the Trustee in its own name
as trustee of an express trust. If a Residual Event of Default occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Issuer for the whole amount of principal
and interest remaining unpaid. In exercising its rights and obligations under
this Section 6.13, the Trustee may sell the rights to receive Residual
Realizations to a third party. Neither the Trustee nor any Class R Noteholder
shall have any rights against the Issuer other than to sell the Residual
Realizations.
(d) Any money collected by the Trustee pursuant to this
Article following a sale of rights to Residual Realizations following a Residual
Event of Default, and any moneys that may then be held or thereafter received by
the Trustee for the benefit of the Class R Notes or otherwise available in the
Residual Account or the Liquidity Reserve Account shall be applied in the
following order, at the date or dates fixed by the Trustee, upon presentation of
the Class R Notes and surrender thereof:
first to the payment of all costs and expenses of collection
incurred by the Trustee and the Class R Noteholders (including the
reasonable fees and expenses of any counsel to the Trustee and the
Noteholders);
second if the person then acting as Servicer under the
Assignment and Servicing Agreement is not Copelco Capital or an
Affiliate of Copelco Capital, to the payment of all Residual Servicer's
Fees then due to such person;
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third first to the payment of all accrued and unpaid interest
on the Outstanding Class R-1 Principal Amount, second to the payment of
all accrued and unpaid interest on the Outstanding Class R-2 Principal
Amount, third to the payment of the Outstanding Class R-1 Principal
Amount and fourth to the payment of the Outstanding Class R-2 Principal
Amount;
fourth to the payment of amounts then due the Trustee
hereunder;
fifth if the person then acting as Servicer is Copelco Capital
or an Affiliate of Copelco Capital, to the payment of all Residual
Servicer's Fees then due to such Person; and
sixth to the payment of the remainder, if any, to the Issuer
or any other Person legally entitled thereto.
SECTION 6.14. Undertaking for Costs.
All parties to this Indenture agree (and each holder of any
Note by its acceptance thereof shall be deemed to have agreed) that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Noteholder, or group of Noteholders,
holding in the aggregate more than 10% of the then Outstanding Principal Amount
of the Notes, or to any suit instituted by any Noteholder for the enforcement of
the payment of the principal of or interest on any Note on or after the
Maturities for such payments, including the Stated Maturity as applicable.
SECTION 6.15. Waiver of Stay or Extension Laws.
The Issuer covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Issuer (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted.
SECTION 6.16. Sale of Trust Estate.
(a) The power to effect any sale of any portion of the Trust
Estate described pursuant to Section 6.03 shall not be exhausted by any one or
more sales as to any portion of the Trust Estate remaining unsold, but shall
continue unimpaired until the entire Trust Estate shall have been sold or all
amounts payable on the Notes shall have
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been paid. The Trustee may from time to time, upon directions in accordance with
Section 6.12, postpone any public sale by public announcement made at the time
and place of such sale. For any public sale of the Trust Estate, the Trustee
shall have provided each Noteholder with notice of such sale at least two weeks
in advance of such sale which notice shall specify the date, time and location
of such sale.
(b) To the extent permitted by applicable law, the Trustee
shall not in any private sale sell to a third party the Trust Estate, or any
portion thereof unless,
(i) until such time as the conditions specified in Sections
10.01(a)(i) and (ii) have been satisfied in full, the holders of 66-2/3% of the
then Outstanding Principal Amount of each Class of the Notes voting separately
consent to or direct the Trustee in writing to make such sale; or
(ii) the proceeds of such sale would be not less than the sum
of all amounts due to the Trustee hereunder and the entire unpaid principal
amount of the Notes and interest due or to become due thereon in accordance with
Section 6.06 on the Payment Date next succeeding the date of such sale.
The foregoing provisions shall not preclude or limit the ability of the Trustee
to purchase all or any portion of the Trust Estate at a private sale.
(c) In connection with a sale of all or any portion of the
Trust Estate:
(i) any one or more Noteholders may bid for and purchase the
property offered for sale, and upon compliance with the terms of sale may hold,
retain, and possess and dispose of such property, without further
accountability, and any Noteholder may, in paying the purchase money therefore,
deliver in lieu of cash any Outstanding Notes or claims for interest thereon for
credit in the amount that shall, upon distribution of the net proceeds of such
sale, be payable thereon, and the Notes, in case the amounts so payable thereon
shall be less than the amount due thereon, shall be returned to the Noteholders
after being appropriately stamped to show such partial payment;
(ii) the Trustee shall execute and deliver an appropriate
instrument of conveyance transferring its interest in any portion of the Trust
Estate in connection with a sale thereof;
(iii) the Trustee is hereby irrevocably appointed the agent
and attorney-in-fact of the Issuer to transfer and convey its interest in any
portion of the Trust Estate in connection with a sale thereof, and to take all
action necessary to effect such sale; and
(iv) no purchaser or transferee at such a sale shall be bound
to ascertain the Trustee's authority, inquire into the satisfaction of any
conditions precedent or see to the application of any moneys.
(d) The method, manner, time, place and terms of any sale of
all or any portion of the Trust Estate shall be commercially reasonable.
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(e) The provisions of this Section 6.16 shall not be construed
to restrict the ability of the Trustee to exercise any rights and powers against
the Issuer or the Trust Estate that are vested in the Trustee by this Indenture,
including, without limitation, the power of the Trustee to proceed against the
collateral subject to the lien of this Indenture and to institute judicial
proceedings for the collection of any deficiency remaining thereafter.
ARTICLE VII
THE TRUSTEE
SECTION 7.01. Certain Duties and Responsibilities.
(a) Except during the continuance of an Event of Default known
to the Trustee,
(i) the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and
(ii) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case of
any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements of
this Indenture.
(b) In case an Event of Default has occurred and is continuing
to the actual knowledge of a Responsible Officer of the Trustee, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his own affairs.
(c) No provision of this Indenture shall be construed to
relieve the Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:
(i) this subsection shall not be construed to limit the effect
of subsection (a) of this Section;
(ii) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved, subject
to Section 7.03(f) hereof, that the Trustee was negligent in ascertaining the
pertinent facts;
(iii) the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with the
direction of the Noteholders in accordance with Section 6.12 relating to the
time, method, and place of conducting any
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proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture; and
(iv) no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.
(d) Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section.
SECTION 7.02. Notice of Defaults or Events of Default.
Within two Business Days after a Responsible Officer obtaining
knowledge of the occurrence of any Default or Event of Default hereunder, the
Trustee shall transmit, by certified mail return receipt requested, hand
delivery or overnight courier, to all Noteholders, as their names and addresses
appear in the Note Register, and the Rating Agencies notice of such Default or
Event of Default hereunder known to the Trustee, unless such Default or Event of
Default shall have been cured or waived.
SECTION 7.03. Certain Rights of Trustee.
Subject to the provisions of Section 7.01:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, note, debenture,
other evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;
(b) any request or direction of the Issuer mentioned herein
shall be sufficiently evidenced by a Trust Request or Trust Order and any action
of the Issuer may be sufficiently evidenced by a Trust Order;
(c) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, rely upon an Officers' Certificate;
(d) the Trustee may consult with counsel as to legal matters
and the written advice of any such counsel selected by the Trustee with due care
shall be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance
thereon;
(e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the
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Noteholders pursuant to this Indenture, unless such Noteholders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;
(f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, note,
debenture, other evidence of indebtedness, or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Issuer, personally or by agent or attorney;
and
(g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct
or negligence on the part of any agent or attorney appointed with due care by it
hereunder.
SECTION 7.04. Not Responsible for Recitals or Issuance of
Notes.
The recitals contained herein and in the Notes, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Issuer, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Notes. The Trustee shall not be accountable for the use or
application by the Issuer of the proceeds of the Notes.
SECTION 7.05. May Hold Notes.
The Trustee, in its individual or any other capacity, may
become the owner or pledgee of Notes and may otherwise deal with the Issuer with
the same rights it would have if it were not Trustee.
SECTION 7.06. Money Held in Trust.
Money and investments held by the Trustee shall be held in
trust in one or more trust accounts hereunder, but need not be segregated from
other funds except to the extent required by law.
SECTION 7.07. Compensation, Reimbursement, etc.
The Issuer agrees:
(a) to pay to the Trustee from time to time, solely from and
only to the extent that amounts are available, such compensation for all
services rendered by it hereunder as the Issuer and the Trustee may agree in
writing (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust); and
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(b) except as otherwise expressly provided herein, to
reimburse the Trustee upon its request, solely from and only to the extent that
amounts are available to the Issuer under Section 3.03(b) or Section 3.04(b) or
payable to the Trustee under clause first of Section 6.06 or clause first of
Section 6.13), for all reasonable expenses, disbursements, and advances incurred
or made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of its
agents and counsel), except any such expense, disbursement, or advance as may be
attributable to its negligence or bad faith.
SECTION 7.08. Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee hereunder which shall
(a) be a corporation organized and doing business under the laws of the United
States of America, any state thereof or the District of Columbia, authorized
under such laws to exercise corporate trust powers; (b) have a combined capital
and surplus of at least $100,000,000; (c) be subject to supervision or
examination by federal or state authority; and (d) at the time of appointment,
shall have long-term debt obligations (or, if the Trustee does not have
outstanding long-term debt obligations and is a subsidiary of a holding company,
which holding company shall have long-term obligations) having a credit rating
of at least "A-" from S&P and Baa3 from ▇▇▇▇▇'▇.
If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.
This Indenture shall always have a Trustee who satisfies the
requirements of Section 310(a)(1) of the Trust Indenture Act. The Trustee is
subject to the provisions of Section 310(b) of the Trust Indenture Act regarding
disqualification of a trustee upon acquiring any conflicting interest.
SECTION 7.09. Resignation and Removal; Appointment of
Successor.
(a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee under
Section 7.10.
(b) The Trustee may resign at any time by giving written
notice thereof to the Issuer and by mailing notice of resignation by first-class
mail, postage prepaid, to Noteholders at their addresses appearing on the Note
Register.
(c) The Trustee may be removed at any time by Act of the
holders of not less than a majority of the then Outstanding Principal Amount of
the Notes, delivered to the Trustee and the Issuer.
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(d) If the Trustee shall resign, be removed, or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, the Issuer, with the consent of the holders of 66-2/3% of the
Outstanding Principal Amount of the Notes, by an act of the Issuer, shall
promptly appoint a successor Trustee.
(e) If no successor Trustee shall have been so appointed by
the Issuer or the Noteholders as hereinbefore provided and accepted appointment
in the manner hereinafter provided within 30 days after any such resignation or
removal, existence of incapability, or occurrence of such vacancy, the Trustee
or any Noteholder may petition any court of competent jurisdiction for the
appointment of a successor Trustee.
(f) The Issuer shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee by mailing
written notice of such event by first-class mail, postage prepaid, to all
Noteholders, as their names and addresses appear in the Note Register and each
Rating Agency. Each notice shall include the name of the successor Trustee and
the address of its Corporate Trust Office.
(g) The Issuer may remove the Trustee if the Trustee fails to
comply with Section 7.08 of this Indenture.
(h) If the Trustee after written request by any Noteholder who
has been a Noteholder for at least six months fails to comply with Section
310(b) of the Trust Indenture Act, such Noteholder may petition any court of
competent jurisdiction, for the removal of the Trustee and the appointment of a
successor Trustee.
SECTION 7.10. Acceptance of Appointment by Successor.
(a) Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Issuer and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on request of the Issuer
or the successor Trustee, such retiring Trustee shall, upon payment of its
charges and expenses, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder. Upon request of any such
successor Trustee, the Issuer shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all such
rights, powers and trusts.
(b) No successor Trustee shall accept its appointment unless
at the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article.
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SECTION 7.11. Merger, Conversion, Consolidation or Succession
to Business.
Any Person into which the Trustee may be merged or converted
or with which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such Person
shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Notes shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion,
or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes. The Trustee shall provide prompt
written notice to each Rating Agency of any event referenced in this Section
7.11.
SECTION 7.12. Co-trustees and Separate Trustees.
(a) At any time or times, if the Issuer, the Trustee or any
Noteholder determines that it is necessary for the purpose of meeting the legal
requirements of any jurisdiction in which any of the Trust Estate may at the
time be located, the Issuer and the Trustee shall have power to appoint, and,
upon the written request of the Trustee or the holders of a majority of the then
Outstanding Principal Amount of the Notes, the Issuer shall for such purpose
join with the Trustee in the execution, delivery, and performance of all
instruments and agreements necessary or proper to appoint one or more Persons
approved by the Trustee either to act as co-trustee, jointly with the Trustee,
of all or any part of such Trust Estate, or to act as separate trustee of any
such property, in either case with such powers as may be provided in the
instrument of appointment, and to vest in such Person or Persons in the capacity
aforesaid, any property, title, right or power deemed necessary or desirable,
subject to the other provisions of this Section. If the Issuer does not join in
such appointment within 15 days after the receipt by it of a request so to do,
or in case an Event of Default has occurred and is continuing, the Trustee, or
the holders of a majority of the then Outstanding Principal Amount of the Notes,
alone shall have power to make such appointment.
(b) Should any written instrument from the Issuer be required
by any co-trustee or separate trustee so appointed for more fully confirming to
such co-trustee or separate trustee such property, title, right, or power, any
and all such instruments shall, on request, be executed, acknowledged and
delivered by the Issuer.
(i) Every co-trustee or separate trustee shall, to the extent
permitted by law, but to such extent only, be appointed subject to the following
terms:
(ii) The Notes shall be authenticated and delivered and all
rights, powers, duties, and obligations hereunder in respect of the custody of
securities, cash and other personal property held by, or required to be
deposited or pledged with, the Trustee hereunder, shall be exercised, solely by
the Trustee.
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(iii) The rights, powers, duties, and obligations hereby
conferred or imposed upon the Trustee in respect of any property covered by such
appointment shall be conferred or imposed upon and exercised or performed by the
Trustee or by the Trustee and such co-trustee or separate trustee jointly, as
shall be provided in the instrument appointing such co-trustee or separate
trustee, except to the extent that, under any law of any jurisdiction in which
any particular act is to be performed, the Trustee shall be incompetent or
unqualified to perform such act, in which event such rights, powers, duties and
obligations shall be exercised and performed by such co-trustee or separate
trustee.
(iv) The Trustee at any time, by an instrument in writing
executed by it, with the concurrence of the Issuer evidenced by a Trust Order,
may accept the resignation of or remove any co-trustee or separate trustee
appointed under this Section, and, in case an Event of Default has occurred and
is continuing, the Trustee shall have power to accept the resignation of, or
remove, any such co-trustee or separate trustee without the concurrence of the
Issuer. Upon the written request of the Trustee, the Issuer shall join with the
Trustee in the execution, delivery and performance of all instruments and
agreements necessary or proper to effectuate such resignation or removal. A
successor to any co-trustee or separate trustee so resigned or removed may be
appointed in the manner provided in this Section.
(v) No co-trustee or separate trustee hereunder shall be
personally liable by reason of any act or omission of the Trustee or any other
such trustee hereunder and the Trustee shall not be personally liable by reason
of any act or omission of any co-trustee or other such separate trustee
hereunder selected by the Trustee with due care or appointed in accordance with
directions to the Trustee pursuant to Section 6.12.
(vi) Any Act of Noteholders delivered to the Trustee shall be
deemed to have been delivered to each such co-trustee and separate trustee.
SECTION 7.13. Acceptance by Trustee.
The Trustee hereby acknowledges the conveyance of the Granted
Assets and the receipt of the Leases and the other Granted Assets granted by the
Issuer hereunder and declares that the Trustee, through a custodian, will hold
such Leases and other Granted Assets conveyed by the Issuer in trust, for the
use and benefit of all Noteholders subject to the terms and provisions hereof.
SECTION 7.14. Preferential Collection of Claims Against the
Issuer.
The Trustee is subject to Trust Indenture Act Section 311(a),
excluding any creditor relationship listed in Trust Indenture Act Section
311(b). A Trustee who has resigned or been removed shall be subject to Trust
Indenture Act Section 311(a) to the extent indicated therein.
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SECTION 7.15. Reports by Trustee to Noteholders.
To the extent required by the Trust Indenture Act, within 60
days after each May 15, following the date of this Indenture, the Trustee shall
mail to Noteholders a brief report dated as of such reporting date that complies
with Trust Indenture Act Section 313(a), if such a report is required pursuant
to Trust Indenture Act Section 313(a). The Trustee also shall comply with Trust
Indenture Act Section 313(b). The Trustee shall also transmit by mail all
reports as required by Trust Indenture Act Section 313(c).
A copy of each such report required under Trust Indenture Act
Section 313 shall, at the time of such transmission to Noteholders be filed with
the Commission and with each stock exchange or other market system on which the
Notes are listed. The Issuer or any other obligor upon the Notes shall notify
the Trustee if the Notes become listed on any stock exchange or market trading
system.
SECTION 7.16. No Proceedings.
The Trustee hereby agrees that it will not, with respect to
its fees and expenses, directly or indirectly institute, or cause to be
instituted, against the Issuer any proceeding of the type referred to in Section
6.01(b) or (c) so long as there shall not have elapsed one year plus one day
since the latest maturing Notes have been paid in full in cash.
ARTICLE VIII
COVENANTS
SECTION 8.01. Payment of Principal and Interest.
The Issuer will duly and punctually pay the principal of and
interest on the Notes in accordance with the terms of the Notes and this
Indenture.
SECTION 8.02. Maintenance of Office or Agency; Chief Executive
Office.
(a) The Issuer will maintain at the Corporate Trust Office an
office or agency where Notes may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Issuer in respect of the
Notes and this Indenture may be served. The Issuer hereby appoints the Trustee
as its agent to receive all such presentations, surrenders, notices and demands.
(b) The chief executive office of the Issuer, and the office
at which the Issuer maintains its records with respect to the Leases, the
interests in the Equipment, and the transactions contemplated hereby, is
currently located in Wilmington, Delaware; and records with respect to certain
of the Leases are maintained in Mt. Laurel, New Jersey. The Issuer will not
change the location of such offices without giving the Trustee at least 30 days
prior written notice thereof.
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SECTION 8.03. Money for Payments to Noteholders to be Held in
Trust.
(a) All payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection Account
pursuant to Section 3.03(b) or Section 6.06 or from amounts withdrawn from the
Residual Account pursuant to Section 3.04(b) shall be made on behalf of the
Issuer by the Trustee, and no amounts so withdrawn from the Collection Account
or the Residual Account for payments of Notes shall be paid over to the Issuer
under any circumstances except as provided in this Section 8.03 or in Section
3.03(b), Section 3.04(b) or Section 6.06.
(b) In making payments hereunder, the Trustee will:
(i) allocate all sums received for payment to the Noteholders
on each Payment Date among such Noteholders pursuant to Section 3.03(b), Section
3.04(b), or Section 6.06, as applicable, in accordance with the information
known to the Trustee;
(ii) hold all sums held by it for the payment of amounts due
with respect to the Notes in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of
as herein provided and pay such sums to such Persons as herein provided; and
(iii) comply with all requirements of the Internal Revenue
Code of 1986, as amended (or any successor statutes), and all regulations
thereunder, with respect to the withholding from any payments made by it on any
Notes of any applicable withholding taxes imposed thereon and with respect to
any applicable reporting requirements in connection therewith.
Whenever the Issuer shall have one or more Paying Agents, it
will, prior to each due date of the principal of or interest on any Notes,
deposit with a Paying Agent a sum sufficient to pay the principal or interest so
becoming due, such sum to be held in trust for the benefit of the Noteholders
entitled to such principal or interest, and (unless such Paying Agent is the
Trustee) the Issuer will promptly notify the Trustee of its action or failure so
to act.
The Issuer will cause each Paying Agent other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:
(1) hold all sums held by it for the payment of the principal
of or interest on Notes in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided, and
(2) give the Trustee notice of any default by the Issuer (or
any other obligor upon the Securities) in the making of any payment of
principal or interest.
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(c) Except as required by applicable law, any money held by
the Trustee in trust for the payment of any amount due with respect to any Note
and remaining unclaimed for three years after such amount has become due and
payable to the Noteholder shall be discharged from such trust and, subject to
applicable escheat laws, paid to the Issuer upon request; and such Noteholder
shall thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Trustee with respect to such trust money shall
thereupon cease.
SECTION 8.04. Corporate Existence; Merger; Consolidation, etc.
(a) The Issuer will keep in full effect its existence and
rights as a business trust under the laws of the State of Delaware.
(b) The Issuer shall at all times observe and comply in all
material respects with (i) all laws applicable to it, (ii) all requisite and
appropriate organizational and other formalities in the management of its
business and affairs and the conduct of the transactions contemplated hereby and
by the Underwriting Agreement and the Assignment and Servicing Agreement.
(c) The Issuer shall not (i) consolidate or merge with or into
any other Person or convey or transfer its properties and assets substantially
as an entirety to any other Person or (ii) commingle its assets with those of
any other Person.
SECTION 8.05. Protection of Trust Estate; Further Assurances.
The Issuer will from time to time execute and deliver all such
supplements and amendments hereto and all such Financing Statements,
continuation statements, instruments of further assurance, and other
instruments, and will take such other action as may be necessary or advisable
to:
(i) Grant more effectively all or any portion of the Trust
Estate;
(ii) maintain or preserve the Lien of this Indenture or carry
out more effectively the purposes hereof;
(iii) publish notice of, or protect the validity of, any Grant
made or to be made by this Indenture and perfect the security interest
contemplated hereby in favor of the Trustee in each of the Leases, in the
Equipment and all other property included in the Trust Estate; provided, that
the Issuer shall not be required to file Financing Statements with respect to
the interests in the Equipment in addition to those contemplated by Section
11.03 of the Assignment and Servicing Agreement;
(iv) enforce or cause the Servicer to enforce any of the
Leases; or
(v) preserve and defend title to the Leases (including the
right to receive all payments due or to become due thereunder), the interests in
the Equipment, or other property included in the Trust Estate and preserve and
defend the rights of the Trustee
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and the Noteholders in such Leases (including the right to receive all payments
due or to become due thereunder), interests in the Equipment and other property
against the claims of all Persons and parties.
The Issuer, upon the Issuer's failure to do so, hereby designates the Trustee
its agent and attorney-in-fact to execute any Financing Statement or
continuation statement required pursuant to this Section 8.05; provided,
however, that such designation shall not be deemed to create a duty in the
Trustee to monitor the compliance of the Issuer with the foregoing covenants;
and provided, further, that the duty of the Trustee to execute any instrument
required pursuant to this Section 8.05 shall arise only if a Responsible Officer
of the Trustee has actual knowledge of any failure of the Issuer to comply with
the provisions of this Section 8.05.
SECTION 8.06. [Reserved].
SECTION 8.07. Performance of Obligations; Assignment and
Servicing Agreement.
(a) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Notes, the
Underwriting Agreement and the Placement Agent Agreement.
(b) The Issuer will not take any action or permit any action
to be taken by others which would release any Person from any of such Person's
covenants or obligations under any Lease or any other instrument included in the
Trust Estate, or which would result in the amendment, hypothecation,
subordination, termination, or discharge of, or impair the validity or
effectiveness of, any Lease or such other instrument, except as expressly
provided in this Indenture or the Assignment and Servicing Agreement.
(c) If any Authorized Officer shall have knowledge of the
occurrence of a default under the Assignment and Servicing Agreement, the Issuer
shall promptly notify the Trustee and the Noteholders thereof, and shall specify
in such notice the action, if any, the Issuer is taking in respect of such
default. Unless consented to by the holders of 66 2/3% of the then Outstanding
Principal Amount of the Notes, the Issuer may not waive any default under or
amend the Assignment and Servicing Agreement.
SECTION 8.08. Negative Covenants.
The Issuer will not:
(a) sell, transfer, exchange or otherwise dispose of any
portion of the Trust Estate except as expressly permitted by this Indenture;
(b) claim any credit on, or make any deduction from, the
principal of, or interest on, any of the Notes by reason of the payment of any
taxes levied or assessed upon any portion of the Trust Estate;
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(c) engage in any business or activity other than in
connection with, or relating to the ownership of, the Leases and the interests
in the Equipment, the issuance of the Notes, and the specific transactions
contemplated hereby;
(d) become liable for, issue, incur, assume, or allow to
remain outstanding any indebtedness, or guaranty any indebtedness of any Person,
other than the Notes, except as contemplated by this Indenture, the registration
statement filed with respect to the Class A Notes, Class B Notes, Class C Notes
and Class D Notes, and the Assignment and Servicing Agreement;
(e) seek dissolution or liquidation in whole or in part or
reorganization of its business or affairs;
(f) (i) permit the validity or effectiveness of this Indenture
or any Grant hereby to be impaired, or permit the lien of this Indenture to be
amended, hypothecated, subordinated, terminated or discharged, or permit any
Person to be released from any covenants or obligations under this Indenture,
except as may be expressly permitted hereby, (ii) permit any lien, charge,
security interest, mortgage or other encumbrance to be created on or to extend
to or otherwise arise upon or burden the Trust Estate or any part thereof or any
interest therein or the proceeds thereof other than the lien of this Indenture,
or (iii) subject to Section 3.01(c) of the Assignment and Servicing Agreement,
permit the lien of this Indenture not to constitute a valid first priority
security interest in the Trust Estate; or
(g) make any loan or advance to any Affiliate of the Issuer or
to any other Person; provided that the Issuer may from time to time make
Inter-Company Loans on the terms and conditions set forth in Section 13 of the
Assignment and Servicing Agreement.
SECTION 8.09. Information as to Issuer.
The Issuer shall deliver to the Trustee and, the Trustee shall
deliver to each Rating Agency and to each holder of outstanding Notes (and, upon
the request of any Noteholder, to any prospective transferee of any Notes):
(a) Notice of Event of Default - immediately upon becoming
aware of the existence of any condition or event which constitutes a Default or
an Event of Default, a written notice describing its nature and period of
existence and what action the Issuer is taking or proposes to take with respect
thereto; and
(b) Report on Proceedings - promptly upon the Issuer's
becoming aware of (i) any proposed or pending investigation of it by any
governmental authority or agency, or (ii) any pending or proposed court or
administrative proceeding which involves or may involve the possibility of
materially and adversely affecting the properties, business, prospects, profits
or condition (financial or otherwise) of the Issuer, a written notice specifying
the nature of such investigation or proceeding and what action the Issuer is
taking or proposes to take with respect thereto and evaluating its merits.
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SECTION 8.10. Taxes.
The Issuer shall pay all taxes when due and payable or levied
against its assets, properties or income, including any property that is part of
the Trust Estate.
SECTION 8.11. Indemnification.
The Issuer agrees to indemnify and hold harmless the Trustee
and each Noteholder (each an "Indemnified Party") against any and all
liabilities, losses, damages, penalties, costs and expenses (including costs of
defense and legal fees and expenses) which may be incurred or suffered by such
Indemnified Party without negligence or willful misconduct on its part as a
result of claims, actions, suits or judgments asserted or imposed against it and
arising out of the transactions contemplated hereby or by the Assignment and
Servicing Agreement, including without limitation, any claims resulting from any
use, operation, maintenance, repair, storage or transportation of any item of
Equipment, whether or not in the Issuer's possession or under its control, and
any tort claims and any fines or penalties arising from any violation of the
laws or regulations of the United States or any state or local government or
governmental authority; provided that, all amounts payable pursuant to this
Section 8.11 shall be fully subordinated to amounts payable under the Notes,
shall be without recourse to the Issuer except to the extent that all amounts
otherwise due and payable under the terms of this Indenture have been fully paid
and shall not, to the extent that such amounts are unpaid, constitute a claim
against the Issuer except to the extent that all amounts otherwise due and
payable under the terms of this Indenture have been fully paid.
SECTION 8.12. Commission Reports; Reports to Trustee; Reports
to Noteholders.
To the extent it has not satisfied the following requirements
by reporting under Section 8.09 hereof, the Issuer shall:
(a) file with the Trustee, within 15 days after the Issuer is
required to file the same with the Commission, copies of the annual reports and
of the information, documents and other reports which the Issuer may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act (or copies of such portions thereof as may be prescribed by rules
and regulations of the Commission); or, if the Issuer is not required to file
with the Commission information, documents or reports pursuant to either Section
13 or Section 15(d) of the Exchange Act, then the Issuer will file with the
Trustee and with the Commission, in accordance with rules and regulations
prescribed by the Commission, such of the supplementary and periodic
information, documents and reports required pursuant to Section 13 of the
Exchange Act in respect of a security listed and registered on a national
securities exchange as may be prescribed in such rules and regulations;
(b) file with the Trustee and the Commission, in accordance
with the rules and regulations prescribed by the Commission, such additional
information, documents and reports with respect to compliance by the Issuer with
the conditions and
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covenants provided for in this Indenture as may be required by such rules and
regulations; and
(c) furnish to the Trustee for distribution to the
Noteholders, as the names and addresses of such Noteholders appear in the Note
Register, in the manner and to the extent provided in Section 7.15 hereof, such
summaries of any information, documents and reports required to be filed with
the Trustee pursuant to the provisions of Subsections (a) and (b) of this
Section 8.12 as may be required to be provided to such Noteholders by the rules
and regulations of the Commission under the provisions of the Trust Indenture
Act.
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.01. Supplemental Indentures Without Consent of
Noteholders.
(a) Without the consent of any Noteholders, the Issuer, by a
Trust Order, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:
(i) to add to the covenants of the Issuer for the benefit of
the Noteholders, or to surrender any right or power herein conferred upon the
Issuer;
(ii) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision herein; or
(iii) to correct or amplify the description of any property at
any time subject to the lien of this Indenture, or to better assure, convey and
confirm unto the Trustee any property subject or required to be subjected to the
lien of this Indenture; provided such action pursuant to this Section 9.01(a)
shall not adversely affect the interests of the Noteholders in any respect.
(b) The Trustee shall promptly deliver to each Noteholder and
each Rating Agency a copy of any supplemental indenture entered into pursuant to
Section 9.01(a).
SECTION 9.02. Supplemental Indentures with Consent of
Noteholders.
(a) With the consent of the holders of not less than 66-2/3%
of the then Outstanding Principal Amount of the Notes and by Act of said
Noteholders delivered to the Issuer and the Trustee, the Issuer, by a Trust
Order, and the Trustee may enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Noteholders under this
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Indenture; provided, that no supplemental indenture shall, without the consent
of the holder of each Outstanding Note affected thereby:
(i) change the Stated Maturity of any Note or the Principal
Payments or Interest Payments due or to become due on any Payment Date with
respect to any Note, or change the priority of payment thereof as set forth
herein, or reduce the principal amount thereof or the Note Interest Rate
thereon, or change the place of payment where, or the coin or currency in which,
any Note or the interest thereon is payable, or impair the right to institute
suit for the enforcement of any such payment on or after the Maturity thereof;
(ii) reduce the percentage of the Outstanding Principal Amount
of the Notes the consent of whose Noteholders is required for any such
supplemental indenture, for any waiver of compliance with provisions of this
Indenture or Events of Default and their consequences, or for any Act of
Noteholders;
(iii) modify any of the provisions of this Section except to
increase any percentage or fraction set forth therein or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the holder of each Outstanding Note affected thereby;
(iv) modify or alter the provisions of the proviso to the
definition of the term "Outstanding"; or
(v) permit the creation of any lien ranking prior to or on a
parity with the lien of this Indenture with respect to any part of the Trust
Estate or, except as provided in Sections 4.01 or 4.02, terminate the lien of
this Indenture on any property at any time subject hereto or deprive any
Noteholder of the security afforded by the lien of this Indenture.
(b) The Trustee shall promptly deliver to each Noteholder and
each Rating Agency a copy of any supplemental indenture entered into pursuant to
Section 9.02(a).
SECTION 9.03. Execution of Supplemental Indentures.
In executing any supplemental indenture (a) pursuant to
Article 9.01 of this Indenture or (b) pursuant to Section 9.02 of this Indenture
without the consent of each holder of the Notes to the execution of the same,
the Trustee shall be entitled to receive, and (subject to Section 7.01) shall
be, fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any
supplemental indenture which affects the Trustee's own rights, duties,
projections, or immunities under this Indenture or otherwise.
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SECTION 9.04. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes, and
every Noteholder of Notes theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.
SECTION 9.05. Reference in Notes to Supplemental Indentures.
Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Issuer shall so determine,
new Notes so modified as to conform, in the opinion of the Trustee and the
Issuer, to any such supplemental indenture may be prepared and executed by the
Issuer and authenticated and delivered by the Trustee in exchange for
Outstanding Notes.
SECTION 9.06. Compliance with Trust Indenture Act.
Every amendment, supplement or waiver to this Indenture or the
Notes shall comply with the Trust Indenture Act as then in effect.
ARTICLE X
SATISFACTION AND DISCHARGE
SECTION 10.01. Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect (except as
to any surviving rights of registration of transfer or exchange of Notes herein
expressly provided for), and the Trustee, on demand of and at the expense of the
Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when
(i) 100 days shall have elapsed since either
(A) all Notes theretofore authenticated and delivered
(other than (1) Notes which have been destroyed, lost or
stolen and which have been replaced or paid as provided in
Section 2.04 and (2) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in
trust by the Issuer and thereafter repaid to the Issuer or
discharged from such trust, as provided in Section 8.03(c))
have been delivered to the Trustee for cancellation; or
(B) the final installments of principal on all such
Notes not theretofore delivered to the Trustee for
cancellation
(1) have become due and payable, or
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(2) will become due and payable at their
Stated Maturity, as applicable,
within one year,
and the Issuer has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for the
purpose an amount sufficient to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the
Trustee for cancellation, for principal and interest to the
date of such deposit (in the case of Notes which have become
due and payable) or to the Stated Maturity thereof;
(ii) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer for the benefit of the Noteholders; and
(iii) the Issuer has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with.
At such time, the Trustee shall deliver to the Issuer or, upon Trust Order, its
assignee, all cash, securities and other property held by it as part of the
Trust Estate other than funds deposited with the Trustee pursuant to Section
10.01(i)(B), for the payment and discharge of the Notes.
(b) Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Issuer to the Trustee under Sections 7.07 and
8.11, and, if money shall have been deposited with the Trustee pursuant to
Section 10.01(i)(B), the obligations of the Trustee under Section 10.02 and
Section 8.03(c) shall survive.
(c) The Trustee shall provide prompt written notice to each
Rating Agency of any satisfaction and discharge of this Indenture pursuant to
this Article 10.
SECTION 10.02. Application of Trust Money.
Subject to the provisions of Section 8.03(c), all money
deposited with the Trustee pursuant to Sections 10.01 and 8.03 shall be held in
trust and applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment to the Persons entitled thereto, of the principal and
interest for whose payment such money has been deposited with the Trustee.
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ARTICLE XI
MISCELLANEOUS
SECTION 11.01. Trust Indenture Act Controls.
If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by operation of Trust Indenture Act Section
318(a), the duties imposed by Section 318(a) shall control.
SECTION 11.02. Communication by Noteholders with Other
Noteholders.
Noteholders may communicate, pursuant to Trust Indenture Act
Section 312(b), with other Noteholders with respect to their rights under this
Indenture or the Notes. The Issuer, the Trustee, the Note Registrar and all
other parties shall have the protection of Trust Indenture Act Section 312(c).
SECTION 11.03. Officers' Certificate and Opinion of Counsel as
to Conditions Precedent.
Upon any request or application by the Issuer (or any other
obligor upon the Notes) to the Trustee to take any action under this Indenture,
the Issuer (or such other Obligor) shall furnish to the Trustee:
(a) an Officers' Certificate (which shall include the
statements set forth in Section 11.04) stating that, in the opinion of the
signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been complied with; and
(b) an Opinion of Counsel (which shall include the statements
set forth in Section 11.04) stating that, in the opinion of such counsel, all
such conditions precedent and covenants have been complied with.
SECTION 11.04. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(a) a statement that the Person making such certificate or
opinion has read such covenant or condition;
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;
80
83
(c) a statement that, in the opinion of such Person, he has
made such examination or investigation as is necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been
complied with; and
(d) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.
SECTION 11.05. Nonpetition.
The Trustee shall not petition or otherwise invoke the process
of any Governmental Authority for the purpose of commencing or sustaining a case
against the Issuer under any federal or state bankruptcy, insolvency or similar
law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Trust or any substantial part of
its respective property, or ordering the winding up or liquidation of the
affairs of the Trust.
81
84
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and witnessed, all as of the day and year first above written.
COPELCO CAPITAL FUNDING LLC 99-1,
as Issuer
By:
Name:
Title:
MANUFACTURERS AND TRADERS TRUST
COMPANY, as Trustee
By
Name:
Title:
COPELCO CAPITAL INC., as Servicer
By
Name:
Title:
[Signature Page to the Indenture]
82
85
EXHIBIT A
CLASS A-1 NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS A-1 LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
duly organized and existing under the laws of Delaware (herein called the
"Issuer", which term includes any successor Person under the Indenture referred
to herein), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of
_______________________________________________ ($_____________), payable in
monthly installments beginning on March 15, 1999, in accordance with the
Indenture. Interest will accrue on the unpaid principal hereof from the date of
issuance until the full amount of principal hereof is otherwise paid or made
available for payment and shall be computed on the basis of a year of 360 days
and the actual number of days in the period since the last Payment Date or with
respect to the March 1999 Payment Date, since March __, 1999.
Principal and interest on this Class A-1 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class A-1 Note as of the relevant
Record Date or by wire transfer to an account at a bank in the United States as
the Holder shall specify, as provided more fully in the Indenture; provided,
that the final payment of principal and interest in respect of the
86
Notes shall be payable to the Holder of this Note only upon presentation and
surrender of this Note at the Corporate Trust Office of the Trustee or at the
principal office of any Paying Agent appointed pursuant to the Indenture.
The Stated Maturity of the Class A-1 Notes is __________, on
which date the Outstanding Principal Amount of the Class A-1 Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class A-1 Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.
This Class A-1 Note is one of a duly authorized issue of Class
A Notes of the Issuer designated as its "___% Class A-1 Lease-Backed Notes,
Series 1999-A" (herein called the "Class A-1 Notes") limited in aggregate
principal amount of $____________, issued under the Indenture, dated as of March
1, 1999 (herein called the "Indenture"), among the Issuer, Copelco Capital,
Inc., as Servicer, and Manufacturers and Traders Trust Company as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class A-1 Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class A-1 Note will be secured by the pledge to the
Trustee of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class A-1 Notes (but not less than all
the Class A-1 Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class A-1 Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class A-1
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class A-1 Note and of any
A-1-2
87
Class A-1 Note issued upon the registration of transfer hereof or in exchange
here for or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Class A-1 Note or any Class A-1 Note.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class A-1 Note is
registrable in the Note Register, upon surrender of this Class A-1 Note for
registration of transfer at the office or agency of the Trustee in the City of
Buffalo, NY, and at any other office or agency maintained by the Issuer for that
purpose, duly endorsed by, or accompanied by a written instrument of transfer in
the form satisfactory to the Note Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
A-1 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Class A-1 Notes are issuable only in registered form
without coupons in minimum denominations of $1,000,000. As provided in the
Indenture and subject to certain limitations therein set forth, Class A-1 Notes
are exchangeable for a like aggregate principal amount of Class A-1 Notes of a
different authorized denomination, as requested by the Holder surrendering the
same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class A-1 Note is registered as
the owner hereof for all purposes, whether or not this Class A-1 Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class A-1 Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
A-1-3
88
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class A-1 Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: _______________________________________________
Authorized Officer
A-1-4
89
ASSIGNMENT FORM
If you the holder want to assign this Class A-1 Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class A-1 Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class A-1 Note on
the books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class
A-1 Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class A-1 Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class A-1 Note and the signed "power of attorney" in separate
envelopes. For added protection, use certified or registered mail for a Class
A-1 Note.
A-1-5
90
CLASS A-2 NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS A-2 LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
organized and existing under the laws of Delaware (herein called the "Issuer",
which term includes any successor Person under the Indenture referred to
herein), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of _________________________________________________
($___________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of _________% per annum, until the
full amount of principal hereof is otherwise paid or made available for payment
and shall be computed on the basis of twelve 30-day months and a year of 360
days.
Principal and interest on this Class A-2 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class A-2 Note as of the relevant
Record Date or by wire transfer to an account at a bank in the United States as
the Holder shall specify, as provided more fully in the Indenture; provided,
that the final payment of principal and interest in respect of the Notes shall
be payable to the Holder of this Note only upon presentation and surrender of
this Note at the Corporate Trust Office of the Trustee or at the principal
office of any Paying Agent appointed pursuant to the Indenture.
91
The Stated Maturity of the Class A-2 Notes is __________, on
which date the Outstanding Principal Amount of the Class A-2 Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class A-2 Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.
This Class A-2 Note is one of a duly authorized issue of Class
A Notes of the Trust designated as its "___% Class A-2 Lease-Backed Notes,
Series 1999-A" (herein called the "Class A-2 Notes") limited in aggregate
principal amount of $____________, issued under the Indenture, dated as of March
1, 1999 (herein called the "Indenture"), among the Issuer, Copelco Capital
Funding LLC 99-1, as Servicer, and Manufacturers and Traders Trust Company as
Trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class A-2 Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class A-2 Note will be secured by the pledge to the
Trustee of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class A-2 Notes (but not less than all
the Class A-2 Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class A-2 Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class A-2
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class A-2 Note and of any Class A-2 Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class A-2
Note or any Class A-2 Note.
A-2-2
92
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class A-2 Note is
registrable in the Note Register, upon surrender of this Class A-2 Note for
registration of transfer at the office or agency of the Trustee in the City of
Buffalo, NY, and at any other office or agency maintained by the Issuer for that
purpose, duly endorsed by, or accompanied by a written instrument of transfer in
the form satisfactory to the Note Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
A-2 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Class A-2 Notes are issuable only in registered form
without coupons in minimum denominations of $1,000,000. As provided in the
Indenture and subject to certain limitations therein set forth, Class A-2 Notes
are exchangeable for a like aggregate principal amount of Class A-2 Notes of a
different authorized denomination, as requested by the Holder surrendering the
same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class A-2 Note is registered as
the owner hereof for all purposes, whether or not this Class A-2 Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class A-2 Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
A-2-3
93
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class A-2 Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: _______________________________________________
Authorized Officer
A-2-4
94
ASSIGNMENT FORM
If you the holder want to assign this Class A-2 Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class A-2 Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class A-2 Note on
the books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class
A-2 Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class A-2 Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class A-2 Note and the signed "power of attorney" in separate
envelopes. For added protection, use certified or registered mail for a Class
A-2 Note.
A-2-5
95
CLASS A-3 NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS A-3 LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
organized and existing under the laws of Delaware (herein called the "Issuer",
which term includes any successor Person under the Indenture referred to
herein), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of _________________________________________________
($___________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of _________% per annum, until the
full amount of principal hereof is otherwise paid or made available for payment
and shall be computed on the basis of twelve 30-day months and a year of 360
days.
Principal and interest on this Class A-3 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class A-3 Note as of the relevant
Record Date or by wire transfer to an account at a bank in the United States as
the Holder shall specify, as provided more fully in the Indenture; provided,
that the final payment of principal and interest in respect of the Notes shall
be payable to the Holder of this Note only upon presentation and surrender of
this Note at the Corporate Trust Office of the Trustee or at the principal
office of any Paying Agent appointed pursuant to the Indenture.
96
The Stated Maturity of the Class A-3 Notes is __________, on
which date the Outstanding Principal Amount of the Class A-3 Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class A-3 Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.
This Class A-3 Note is one of a duly authorized issue of Class
A Notes of the Trust designated as its "___% Class A-3 Lease-Backed Notes,
Series 1999-A" (herein called the "Class A-3 Notes") limited in aggregate
principal amount of $____________, issued under the Indenture, dated as of March
1, 1999 (herein called the "Indenture"), among the Issuer, Copelco Capital
Funding LLC 99-1, as Servicer, and Manufacturers and Traders Trust Company as
Trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class A-3 Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class A-3 Note will be secured by the pledge to the
Trustee of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class A-3 Notes (but not less than all
the Class A-3 Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class A-3 Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class A-3
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class A-3 Note and of any Class A-3 Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class A-3
Note or any Class A-3 Note.
A-3-2
97
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class A-3 Note is
registrable in the Note Register, upon surrender of this Class A-3 Note for
registration of transfer at the office or agency of the Trustee in the City of
Buffalo, NY, and at any other office or agency maintained by the Issuer for that
purpose, duly endorsed by, or accompanied by a written instrument of transfer in
the form satisfactory to the Note Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
A-3 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Class A-3 Notes are issuable only in registered form
without coupons in minimum denominations of $1,000,000. As provided in the
Indenture and subject to certain limitations therein set forth, Class A-3 Notes
are exchangeable for a like aggregate principal amount of Class A-3 Notes of a
different authorized denomination, as requested by the Holder surrendering the
same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class A-3 Note is registered as
the owner hereof for all purposes, whether or not this Class A-3 Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class A-3 Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
A-3-3
98
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class A-3 Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: _______________________________________________
Authorized Officer
A-3-4
99
ASSIGNMENT FORM
If you the holder want to assign this Class A-3 Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class A-3 Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class A-3 Note on
the books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class
A-3 Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class A-3 Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class A-3 Note and the signed "power of attorney" in separate
envelopes. For added protection, use certified or registered mail for a Class
A-3 Note.
A-3-5
100
CLASS A-4 NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS A-4 LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
organized and existing under the laws of Delaware (herein called the "Issuer",
which term includes any successor Person under the Indenture referred to
herein), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of _________________________________________________
($___________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of _________% per annum, until the
full amount of principal hereof is otherwise paid or made available for payment
and shall be computed on the basis of twelve 30-day months and a year of 360
days.
Principal and interest on this Class A-4 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class A-4 Note as of the relevant
Record Date or by wire transfer to an account at a bank in the United States as
the Holder shall specify, as provided more fully in the Indenture; provided,
that the final payment of principal and interest in respect of the Notes shall
be payable to the Holder of this Note only upon presentation and surrender of
this Note at the Corporate Trust Office of the Trustee or at the principal
office of any Paying Agent appointed pursuant to the Indenture.
101
The Stated Maturity of the Class A-4 Notes is __________, on
which date the Outstanding Principal Amount of the Class A-4 Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class A-4 Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.
This Class A-4 Note is one of a duly authorized issue of Class
A Notes of the Trust designated as its "___% Class A-4 Lease-Backed Notes,
Series 1999-A" (herein called the "Class A-4 Notes") limited in aggregate
principal amount of $____________, issued under the Indenture, dated as of March
1, 1999 (herein called the "Indenture"), among the Issuer, Copelco Capital
Funding LLC 99-1, as Servicer, and Manufacturers and Traders Trust Company as
Trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class A-4 Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class A-4 Note will be secured by the pledge to the
Trustee of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class A-4 Notes (but not less than all
the Class A-4 Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class A-4 Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class A-4
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class A-4 Note and of any Class A-4 Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class A-4
Note or any Class A-4 Note.
A-4-2
102
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class A-4 Note is
registrable in the Note Register, upon surrender of this Class A-4 Note for
registration of transfer at the office or agency of the Trustee in the City of
Buffalo, NY, and at any other office or agency maintained by the Issuer for that
purpose, duly endorsed by, or accompanied by a written instrument of transfer in
the form satisfactory to the Note Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
A-4 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Class A-4 Notes are issuable only in registered form
without coupons in minimum denominations of $1,000,000. As provided in the
Indenture and subject to certain limitations therein set forth, Class A-4 Notes
are exchangeable for a like aggregate principal amount of Class A-4 Notes of a
different authorized denomination, as requested by the Holder surrendering the
same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class A-4 Note is registered as
the owner hereof for all purposes, whether or not this Class A-4 Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class A-4 Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
A-4-3
103
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class A-4 Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: _______________________________________________
Authorized Officer
A-4-4
104
ASSIGNMENT FORM
If you the holder want to assign this Class A-4 Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class A-4 Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class A-4 Note on
the books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class
A-4 Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class A-4 Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class A-4 Note and the signed "power of attorney" in separate
envelopes. For added protection, use certified or registered mail for a Class
A-4 Note.
A-4-5
105
CLASS B NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS B LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
organized and existing under the laws of Delaware (herein called the "Issuer",
which term includes any successor Person under the Indenture referred to
herein), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of _________________________________________________
($___________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of _________% per annum, until the
full amount of principal hereof is otherwise paid or made available for payment
and shall be computed on the basis of twelve 30-day months and a year of 360
days.
Principal and interest on this Class B Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class B Note as of the relevant Record
Date or by wire transfer to an account at a bank in the United States as the
Holder shall specify, as provided more fully in the Indenture; provided, that
the final payment of principal and interest in respect of the Notes shall be
payable to the Holder of this Note only upon presentation and surrender of this
Note at the Corporate Trust Office of the Trustee or at the principal office of
any Paying Agent appointed pursuant to the Indenture.
106
The Stated Maturity of the Class B Notes is __________, on
which date the Outstanding Principal Amount of the Class B Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class B Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
This Class B Note is one of a duly authorized issue of Class A
Notes of the Trust designated as its "___% Class B Lease-Backed Notes, Series
1999-A" (herein called the "Class B Notes") limited in aggregate principal
amount of $____________, issued under the Indenture, dated as of March 1, 1999
(herein called the "Indenture"), among the Issuer, Copelco Capital Funding LLC
99-1, as Servicer, and Manufacturers and Traders Trust Company as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class B Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class B Note will be secured by the pledge to the Trustee
of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class B Notes (but not less than all
the Class B Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class B Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class B
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class B Note and of any Class B Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class B Note
or any Class B Note.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class B Note is registrable
in the Note Register, upon surrender
B-2
107
of this Class B Note for registration of transfer at the office or agency of the
Trustee in the City of Buffalo, NY, and at any other office or agency maintained
by the Issuer for that purpose, duly endorsed by, or accompanied by a written
instrument of transfer in the form satisfactory to the Note Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Class B Notes, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.
The Class B Notes are issuable only in registered form without
coupons in minimum denominations of $1,000,000. As provided in the Indenture and
subject to certain limitations therein set forth, Class B Notes are exchangeable
for a like aggregate principal amount of Class B Notes of a different authorized
denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class B Note is registered as
the owner hereof for all purposes, whether or not this Class B Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class B Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
B-3
108
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class B Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: ______________________________________________
Authorized Officer
B-4
109
ASSIGNMENT FORM
If you the holder want to assign this Class B Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class B Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class B Note on the
books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class B
Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class B Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class B Note and the signed "power of attorney" in separate envelopes.
For added protection, use certified or registered mail for a Class B Note.
B-5
110
CLASS C NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS C LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
organized and existing under the laws of Delaware (herein called the "Issuer",
which term includes any successor Person under the Indenture referred to
herein), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of _________________________________________________
($___________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of _________% per annum, until the
full amount of principal hereof is otherwise paid or made available for payment
and shall be computed on the basis of twelve 30-day months and a year of 360
days.
Principal and interest on this Class A-2 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class C Note as of the relevant Record
Date or by wire transfer to an account at a bank in the United States as the
Holder shall specify, as provided more fully in the Indenture; provided, that
the final payment of principal and interest in respect of the Notes shall be
payable to the Holder of this Note only upon presentation and surrender of this
Note at the Corporate Trust Office of the Trustee or at the principal office of
any Paying Agent appointed pursuant to the Indenture.
111
The Stated Maturity of the Class C Notes is __________, on
which date the Outstanding Principal Amount of the Class C Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class C Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
This Class C Note is one of a duly authorized issue of Class A
Notes of the Trust designated as its "___% Class C Lease-Backed Notes, Series
1999-A" (herein called the "Class C Notes") limited in aggregate principal
amount of $____________, issued under the Indenture, dated as of March 1, 1999
(herein called the "Indenture"), among the Issuer, Copelco Capital Funding LLC
99-1, as Servicer, and Manufacturers and Traders Trust Company as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class C Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class C Note will be secured by the pledge to the Trustee
of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class C Notes (but not less than all
the Class C Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class C Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class C
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class C Note and of any Class C Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class C Note
or any Class C Note.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class C Note is registrable
in the Note Register, upon surrender
C-2
112
of this Class C Note for registration of transfer at the office or agency of the
Trustee in the City of Buffalo, NY, and at any other office or agency maintained
by the Issuer for that purpose, duly endorsed by, or accompanied by a written
instrument of transfer in the form satisfactory to the Note Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Class C Notes, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.
The Class C Notes are issuable only in registered form without
coupons in minimum denominations of $1,000,000. As provided in the Indenture and
subject to certain limitations therein set forth, Class C Notes are exchangeable
for a like aggregate principal amount of Class C Notes of a different authorized
denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class C Note is registered as
the owner hereof for all purposes, whether or not this Class C Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class C Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
C-3
113
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class C Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: ______________________________________________
Authorized Officer
C-4
114
ASSIGNMENT FORM
If you the holder want to assign this Class C Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class C Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class C Note on the
books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class C
Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class C Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class C Note and the signed "power of attorney" in separate envelopes.
For added protection, use certified or registered mail for a Class C Note.
C-5
115
CLASS D NOTE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS D LEASE-BACKED NOTE, SERIES 1999-A
CUSIP NO. _______________
No. R-1 $____________
Copelco Capital Funding LLC 99-1, a limited liability company
organized and existing under the laws of Delaware (herein called the "Issuer",
which term includes any successor Person under the Indenture referred to
herein), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of _________________________________________________
($___________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of _________% per annum, until the
full amount of principal hereof is otherwise paid or made available for payment
and shall be computed on the basis of twelve 30-day months and a year of 360
days.
Principal and interest on this Class D Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class D Note as of the relevant Record
Date or by wire transfer to an account at a bank in the United States as the
Holder shall specify, as provided more fully in the Indenture; provided, that
the final payment of principal and interest in respect of the Notes shall be
payable to the Holder of this Note only upon presentation and surrender of this
Note at the Corporate Trust Office of the Trustee or at the principal office of
any Paying Agent appointed pursuant to the Indenture.
116
The Stated Maturity of the Class D Notes is __________, on
which date the Outstanding Principal Amount of the Class D Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class D Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
This Class D Note is one of a duly authorized issue of Class A
Notes of the Trust designated as its "___% Class D Lease-Backed Notes, Series
1999-A" (herein called the "Class D Notes") limited in aggregate principal
amount of $____________, issued under the Indenture, dated as of March 1, 1999
(herein called the "Indenture"), among the Issuer, Copelco Capital Funding LLC
99-1, as Servicer, and Manufacturers and Traders Trust Company as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Issuer, the Trustee and the
Holders and of the terms upon which the Class D Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
This Class D Note will be secured by the pledge to the Trustee
of the Trust Estate.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class D Notes (but not less than all
the Class D Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class D Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time Outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class D
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class D Note and of any Class D Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class D Note
or any Class D Note.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class D Note is registrable
in the Note Register, upon surrender
D-2
117
of this Class D Note for registration of transfer at the office or agency of the
Trustee in the City of Buffalo, NY, and at any other office or agency maintained
by the Issuer for that purpose, duly endorsed by, or accompanied by a written
instrument of transfer in the form satisfactory to the Note Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Class D Notes, of authorized denominations and for the
same aggregate principal amount, will be issued to the designated transferee or
transferees.
The Class D Notes are issuable only in registered form without
coupons in minimum denominations of $1,000,000. As provided in the Indenture and
subject to certain limitations therein set forth, Class D Notes are exchangeable
for a like aggregate principal amount of Class D Notes of a different authorized
denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class D Note is registered as
the owner hereof for all purposes, whether or not this Class D Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class D Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
D-3
118
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: _______________, as Manager
By: __________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class D Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: ______________________________________________
Authorized Officer
D-4
119
ASSIGNMENT FORM
If you the holder want to assign this Class D Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class D Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class D Note on the
books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class D
Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class D Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class D Note and the signed "power of attorney" in separate envelopes.
For added protection, use certified or registered mail for a Class D Note.
D-5
120
CLASS E NOTE
NO TRANSFER OF ANY CLASS E NOTE MAY BE MADE UNLESS THAT TRANSFER IS MADE
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND AN
EFFECTIVE REGISTRATION OR A QUALIFICATION UNDER APPLICABLE STATE SECURITIES
LAWS, OR IS MADE IN A TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION OR
QUALIFICATION BECAUSE THE TRANSFER SATISFIES ONE OF THE FOLLOWING: (I) SUCH
TRANSFER IS IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, TO A PERSON
WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT SUCH
TRANSFER IS BEING MADE IN RELIANCE UPON RULE 144A UNDER THE SECURITIES ACT AS
CERTIFIED BY SUCH TRANSFEREE IN A LETTER IN THE FORM OF EXHIBIT B TO THE
INDENTURE; (II) AFTER THE APPROPRIATE HOLDING PERIOD, SUCH TRANSFER IS PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
UNDER THE SECURITIES ACT; (III) SUCH TRANSFER IS TO A TRANSFEREE WHO IS AN
ACCREDITED INVESTOR (AS DEFINED IN RULE 501 OF THE SECURITIES ACT) IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN
EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR (IV) SUCH TRANSFER IS OTHERWISE EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE TRUSTEE WILL REQUIRE, IN ORDER TO ASSURE
COMPLIANCE WITH SUCH LAWS, THAT THE CLASS E NOTEHOLDER'S PROSPECTIVE TRANSFEREE
REFERRED TO IN THE PRECEDING CLAUSES (III) OR (IV) DELIVER AN INVESTMENT LETTER
CERTIFYING TO THE ISSUER AND THE TRUSTEE AS TO THE FACTS SURROUNDING SUCH
TRANSFER IN THE FORM OF EXHIBIT B TO THE INDENTURE. EXCEPT IN THE CASE OF A
TRANSFER OF CLASS E NOTES TO A TRANSFEREE REFERRED TO IN THE PRECEDING CLAUSE
(I) OR, IN GENERAL, A TRANSFER THAT IS TO BE MADE AFTER THREE YEARS FROM THE
ISSUANCE DATE, THE TRUSTEE SHALL REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO
IT TO THE EFFECT THAT SUCH TRANSFER MAY BE MADE PURSUANT TO AN EXEMPTION FROM
THE SECURITIES ACT WITHOUT SUCH REGISTRATION (WHICH OPINION OF COUNSEL SHALL NOT
BE AN EXPENSE OF THE TRUSTEE OR THE SERVICER OR THE ISSUER). NONE OF THE ISSUER,
THE SERVICER OR THE TRUSTEE IS OBLIGATED TO REGISTER OR QUALIFY THE CLASS E
NOTES UNDER THE SECURITIES ACT OR ANY OTHER SECURITIES LAW OR TO TAKE ANY ACTION
NOT OTHERWISE REQUIRED UNDER THIS INDENTURE TO PERMIT THE TRANSFER OF ANY CLASS
E NOTE WITHOUT REGISTRATION.
COPELCO CAPITAL FUNDING LLC 99-1
____% CLASS E LEASE-BACKED NOTE
CUSIP No. ____________
No. R-1 $_______________
Copelco Capital Funding LLC 99-1, a limited liability company
duly organized and existing under the laws of Delaware (herein called the
"Issuer", which term
121
includes any successor Person under the Indenture referred to herein), for value
received, hereby promises to pay __________, or registered assigns, the
principal sum ___________ ($____________), payable in monthly installments
beginning on March 15, 1999, in accordance with the Indenture. Interest will
accrue on the unpaid principal hereof from February 15, 1999, at the rate of
____% per annum, until the full amount of principal hereof is otherwise paid or
made available for payment and shall be computed on the basis of twelve 30-day
months and a year of 360 days.
Principal and interest on this Class E Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class E Note or by wire transfer to an
account at a bank in the United States as the Holder shall specify, as provided
more fully in the Indenture; provided, that the final payment of principal and
interest in respect of the Class E Notes shall be payable to the Holder of this
Class E Note only upon presentation and surrender of this Class E Note at the
Corporate Trust Office of the Trustee or at the principal office of any Paying
Agent appointed pursuant to the Indenture.
The Stated Maturity of the Class E Notes is __________, on
which date the Outstanding Principal Amount of the Class E Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class E Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
This Class E Note is one of a duly authorized issue of Class E
Notes of the Issuer designated as its "____% Class E Lease-Backed Notes, Series
1999-A" (herein called the "Class E Notes"), limited in aggregate principal
amount of $________, issued under the Indenture, dated as of March 1, 1999
(herein called the "Indenture"), among the Issuer, Copelco Capital, Inc., as
Servicer, and Manufacturers and Traders Trust Company as Trustee (herein called
the "Trustee", which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Issuer, the Trustee and the Holders and of the
terms upon which the Class E Notes are authenticated and delivered. Unless
otherwise defined herein, all capitalized terms used herein shall have the
meanings set forth in the Indenture.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class E Notes (but not less than all
the Class E Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class E Note shall terminate.
E-2
122
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class E
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class E Note and of any Class E Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class E Note
or any Class E Note.
No sale or transfer of this Class E Note may be made unless
such sale or transfer complies with or is exempt from registration requirements
of the Securities Act and applicable state securities laws. Prospective
transferees of this Class E Note will be required to deliver a certificate
pursuant to the terms of the Indenture relating to compliance with the
Securities Act and applicable state securities law.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class E Note is registrable
in the Note Register, upon surrender of this Class E Note for registration of
transfer at the office or agency of the Trustee in the City of Buffalo, NY, and
at any other office or agency maintained by the Issuer for that purpose, duly
endorsed by, or accompanied by a written instrument of transfer in the form
satisfactory to the Note Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Class E
Notes, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.
The Class E Notes are issuable only in registered form without
coupons in minimum denominations of $1,000,000. As provided in the Indenture and
subject to certain limitations therein set forth, Class E Notes are exchangeable
for a like aggregate principal amount of Class E Notes of a different authorized
denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class E Note is registered as
the owner hereof for all purposes, whether or not this Class E Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
E-3
123
The Indenture and this Class E Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
E-4
124
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: ________________, as manager
By: ____________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class E Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: ______________________________________________
Authorized Officer
E-5
125
ASSIGNMENT FORM
If you the holder want to assign this Class E Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class E Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class E Note on the
books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class E
Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class E Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class E Note and the signed "power of attorney" in separate envelopes.
For added protection, use certified or registered mail for a Class E Note.
E-6
126
CLASS R-1 NOTE
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT, TO REGISTRATION.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES (1) TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE ISSUER, (B)
PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVE IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (E) TO AN INSTITUTIONAL ACCREDITED
INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS PURCHASING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $1,000,000, FOR INVESTMENT PURPOSES ONLY
AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO,
IN EACH CASE, COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND THE
ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) AND (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND IN THE CASE OF THE FOREGOING CLAUSE (E), A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO RESTRICTIONS ON TRANSFER OF THIS
SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) COMPLETED AND
DELIVERED BY THE PROSPECTIVE TRANSFEROR HEREOF TO THE ISSUER AND THE TRUSTEE AND
(2) THAT SUCH HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PROSPECTIVE PURCHASER OF THIS SECURITY FROM IT OR THE RESALE RESTRICTIONS
REFERRED TO IN (1) ABOVE.
127
COPELCO CAPITAL FUNDING LLC 99-1
___% CLASS R-1 LEASE-BACKED NOTE
CUSIP No. ____________
No. R-1 $______________
Copelco Capital Funding LLC 99-1, a limited liability company
duly organized and existing under the laws of Delaware (herein called the
"Issuer", which term includes any successor Person under the Indenture referred
to herein), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of _____________________________________,
($____________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of ____% per annum, until the full
amount of principal hereof is otherwise paid or made available for payment and
shall be computed on the basis of twelve 30-day months and a year of 360 days.
Principal and interest on this Class R-1 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class R-1 Note or by wire transfer to
an account at a bank in the United States as the Holder shall specify, as
provided more fully in the Indenture; provided, that the final payment of
principal and interest in respect of the Class R-1 Notes shall be payable to the
Holder of this Class R-1 Note only upon presentation and surrender of this Class
R-1 Note at the Corporate Trust Office of the Trustee or at the principal office
of any Paying Agent appointed pursuant to the Indenture.
The Stated Maturity of the Class R-1 Notes is ___________, on
which date the Outstanding Principal Amount of the Class R-1 Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class R-1 Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.
This Class R-1 Note is one of a duly authorized issue of Class
R-1 Notes of the Trust designated as its "____% Class R-1 Lease-Backed Notes,
Series 1999-A" (herein called the "Class R-1 Notes"), limited in aggregate
principal amount of $_______, issued under the Indenture, dated as of March 1,
1999 (herein called the "Indenture"), among the Issuer, Copelco Capital, Inc.,
as Servicer, and Manufacturers and Traders Trust Company as Trustee (herein
called the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Issuer, the Trustee and the
R-1-2
128
Holders and of the terms upon which the Class R-1 Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class R-1 Notes (but not less than all
the Class R-1 Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class R-1 Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class R-1
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class R-1 Note and of any Class R-1 Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class R-1
Note or any Class R-1 Note.
No sale or transfer of this Class R-1 Note may be made unless
such sale or transfer complies with or is exempt from registration requirements
of the Securities Act and applicable state securities laws. Prospective
transferees of this Class R-1 Note will be required to deliver a certificate
pursuant to the terms of the Indenture relating to compliance with the
Securities Act and applicable state securities law.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class R-1 Note is
registrable in the Note Register, upon surrender of this Class R-1 Note for
registration of transfer at the office or agency of the Trustee in the City of
Buffalo, NY, and at any other office or agency maintained by the Issuer for that
purpose, duly endorsed by, or accompanied by a written instrument of transfer in
the form satisfactory to the Note Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
R-1 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Class R-1 Notes are issuable only in registered form
without coupons in minimum denominations of $1,000,000. As provided in the
Indenture and subject to certain limitations therein set forth, Class R-1 Notes
are exchangeable for a like aggregate
R-1-3
129
principal amount of Class R-1 Notes of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class R-1 Note is registered as
the owner hereof for all purposes, whether or not this Class R-1 Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class R-1 Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
R-1-4
130
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: COPELCO __________, as manager
By: ______________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class R-1 Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: ______________________________________________
Authorized Officer
R-1-5
131
ASSIGNMENT FORM
If you the holder want to assign this Class R-1 Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class R-1 Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class R-1 Note on
the books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class
R-1 Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class R-1 Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class R-1 Note and the signed "power of attorney" in separate
envelopes. For added protection, use certified or registered mail for a Class
R-1 Note.
R-1-6
132
CLASS R-2 NOTE
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT, TO REGISTRATION.
THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES (1) TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE ISSUER, (B)
PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVE IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (E) TO AN INSTITUTIONAL ACCREDITED
INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS PURCHASING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $1,000,000, FOR INVESTMENT PURPOSES ONLY
AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO,
IN EACH CASE, COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS AND THE
ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) AND (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND IN THE CASE OF THE FOREGOING CLAUSE (E), A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO RESTRICTIONS ON TRANSFER OF THIS
SECURITY (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) COMPLETED AND
DELIVERED BY THE PROSPECTIVE TRANSFEROR HEREOF TO THE ISSUER AND THE TRUSTEE AND
(2) THAT SUCH HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PROSPECTIVE PURCHASER OF THIS SECURITY FROM IT OR THE RESALE RESTRICTIONS
REFERRED TO IN (1) ABOVE.
133
COPELCO CAPITAL FUNDING LLC 99-1
___% CLASS R-2 LEASE-BACKED NOTE
CUSIP No. ____________
No. R-1 $______________
Copelco Capital Funding LLC 99-1, a limited liability company
duly organized and existing under the laws of Delaware (herein called the
"Issuer", which term includes any successor Person under the Indenture referred
to herein), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of _____________________________________,
($____________), payable in monthly installments beginning on March 15, 1999, in
accordance with the Indenture. Interest will accrue on the unpaid principal
hereof from February 15, 1999, at the rate of ____% per annum, until the full
amount of principal hereof is otherwise paid or made available for payment and
shall be computed on the basis of twelve 30-day months and a year of 360 days.
Principal and interest on this Class R-2 Note shall be paid on
the 15th day of each month (or, if such day is not a Business Day, the next
succeeding Business Day), commencing March 15, 1999, either by check to the
registered address of the Holder of this Class R-2 Note or by wire transfer to
an account at a bank in the United States as the Holder shall specify, as
provided more fully in the Indenture; provided, that the final payment of
principal and interest in respect of the Class R-2 Notes shall be payable to the
Holder of this Class R-2 Note only upon presentation and surrender of this Class
R-2 Note at the Corporate Trust Office of the Trustee or at the principal office
of any Paying Agent appointed pursuant to the Indenture.
The Stated Maturity of the Class R-2 Notes is ___________, on
which date the Outstanding Principal Amount of the Class R-2 Notes shall be due
and payable.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Class R-2 Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.
This Class R-2 Note is one of a duly authorized issue of Class
R-2 Notes of the Trust designated as its "____% Class R-2 Lease-Backed Notes,
Series 1999-A" (herein called the "Class R-2 Notes"), limited in aggregate
principal amount of $_______, issued under the Indenture, dated as of March 1,
1999 (herein called the "Indenture"), among the Issuer, Copelco Capital, Inc.,
as Servicer, and Manufacturers and Traders Trust Company as Trustee (herein
called the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Issuer, the Trustee and the
R-2-2
134
Holders and of the terms upon which the Class R-2 Notes are authenticated and
delivered. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Indenture.
If an Event of Default under the Indenture has been declared
by the Trustee, the principal of all the Class R-2 Notes (but not less than all
the Class R-2 Notes) may be declared due and payable in the manner and with the
effect provided in the Indenture. Notice of such declaration will be given by
mail to Holders, as their names and addresses appear in the Note Register, as
provided in the Indenture. Upon payment of such principal amount together with
all accrued interest, the obligations of the Issuer with respect to the payment
of principal and interest on this Class R-2 Note shall terminate.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders under the Indenture at
any time by the Issuer and the Trustee with the consent of the Holders of 66
2/3% in aggregate principal amount of the Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Notes at the time outstanding,
on behalf of all the Holders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class R-2
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Class R-2 Note and of any Class R-2 Note issued upon the
registration of transfer hereof or in exchange here for or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Class R-2
Note or any Class R-2 Note.
No sale or transfer of this Class R-2 Note may be made unless
such sale or transfer complies with or is exempt from registration requirements
of the Securities Act and applicable state securities laws. Prospective
transferees of this Class R-2 Note will be required to deliver a certificate
pursuant to the terms of the Indenture relating to compliance with the
Securities Act and applicable state securities law.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Class R-2 Note is
registrable in the Note Register, upon surrender of this Class R-2 Note for
registration of transfer at the office or agency of the Trustee in the City of
Buffalo, NY, and at any other office or agency maintained by the Issuer for that
purpose, duly endorsed by, or accompanied by a written instrument of transfer in
the form satisfactory to the Note Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Class
R-2 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Class R-2 Notes are issuable only in registered form
without coupons in minimum denominations of $1,000,000. As provided in the
Indenture and subject to certain limitations therein set forth, Class R-2 Notes
are exchangeable for a like aggregate
R-2-3
135
principal amount of Class R-2 Notes of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name this Class R-2 Note is registered as
the owner hereof for all purposes, whether or not this Class R-2 Note may be
overdue, and neither the Issuer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The Indenture and this Class R-2 Note shall be deemed to be
contracts made under the laws of the State of New York and shall for all
purposes be governed by, and construed in accordance with, the laws of the State
of New York.
R-2-4
136
IN WITNESS WHEREOF, the Issuer has caused this instrument to
be duly executed under its corporate seal.
Dated: March __, 1999
COPELCO CAPITAL FUNDING LLC 99-1
By: COPELCO __________, as manager
By: ______________________________
Authorized Officer
Trustee's Certificate of Authentication
This is one of the Class R-2 Notes referred to in the within
mentioned Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY, as Trustee
By: ______________________________________________
Authorized Officer
R-2-5
137
ASSIGNMENT FORM
If you the holder want to assign this Class R-2 Note, fill in
the form below and have your signature guaranteed:
I or we assign and transfer this Class R-2 Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ____________, agent to transfer this Class R-2 Note on
the books of the Issuer. The agent may substitute another to act for him.
Dated: ________________ Signed: _________________________________
_________________________________
(sign exactly as the name appears
on the other side of this Class
R-2 Note)
Signature Guarantee ____________________________________________________________
Important Notice: When you sign your name to this Assignment Form without
filling in the name of your "Assignee" or "Attorney", this Note becomes fully
negotiable, similar to a check endorsed in blank. Therefore, to safeguard a
signed Class R-2 Note, it is recommended that you fill in the name of the new
owner in the "Assignee" blank. Alternatively, instead of using this Assignment
Form, you may sign a separate "power of attorney" form and then mail the
unsigned Class R-2 Note and the signed "power of attorney" in separate
envelopes. For added protection, use certified or registered mail for a Class
R-2 Note.
R-2-6
138
EXHIBIT B
[FORM OF
INVESTOR'S LETTER]
(Date)
Copelco Capital Funding LLC ▇▇-▇
▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
Prudential Securities Incorporated
▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-2014
Ladies and Gentlemen:
We propose to purchase $___________ in original aggregate
principal amount of Copelco Capital Funding LLC 99-1 _____% Class [E] [R-1]
[R-2] Lease-Backed Notes, Series 1999-A, (the "Notes"). The Notes were issued
pursuant to an Indenture (the "Indenture"), dated as of March 1, 1999, among
Copelco Capital Funding LLC 99-1, as Issuer, Manufacturers and Traders Trust
Company, as Trustee, and Copelco Capital, Inc., as Servicer. Capitalized terms
used herein but not otherwise defined shall have the same meaning as in the
Indenture.
In connection with our proposed purchase of the Notes, we
agree to the following terms and conditions and make the representations and
warranties stated herein with the express understanding that they will be relied
upon by Copelco Capital Funding LLC 99-1 and the parties to the Placement Agent
Agreement.
1. We understand that the Notes have not been registered
under the Securities Act of 1933, as amended (the "Securities Act") or
registered or qualified under any state securities or "Blue Sky" laws and are
being sold to us in a transaction that is exempt from the registration
requirements of the Securities Act and the registration or qualification
requirements of such state laws.
2. We are (Check one):
(a) a "Qualified Institutional Buyer" (as
defined in Rule 144A under the Securities
Act), in the case of a transfer of
Certificates to be made in reliance on Rule
144A.
(b) an institutional investor that has such
knowledge and experience in financial and
business matters as to be capable of
evaluating the merits and risks of an
investment in the Notes and is able to bear
the
139
economic risk of investment in the Notes.
(c) an "accredited investor" as defined in Rule
501 promulgated under the Securities Act
that has such knowledge and experience in
financial and business matters as to be
capable of evaluating the merits and risks
of investment in the Notes and is able to
bear the economic risk of investment in the
Notes.
3. We agree that, to the extent that Section 2(a) of
this letter is applicable, that the Notes will not be transferred unless such
transfer is made in reliance on Rule 144A or unless some other exemption from
the registration requirements of the Securities Act, or any applicable state
securities law, is available.
4. To the extent that Section 2(b) or (c) of this letter
is applicable, that we are acquiring the Notes (i) solely for investment
purposes for our own account or for accounts as to which we exercise sole
investment discretion and not with a view to any resale or distribution of the
Notes in whole or in part, or (ii) otherwise for purposes which will not
constitute a distribution of securities under the Securities Act, or under any
state securities or "Blue Sky" laws subject, nevertheless, to the understanding
that disposition of our property shall at all times be and remain within our
control, and under no circumstances will we attempt to sell, pledge, hypothecate
or otherwise transfer all or any portion of our interest in the Notes except in
accordance with the terms of the Notes and the Indenture.
5. We agree not to sell the Notes in whole or in part,
unless the subsequent purchaser agrees to be subject to the same representations
and warranties as were applicable to us in acquiring the Notes.
6. We understand that each of the Notes shall bear a
legend substantially as set forth in the form of Note included in the Indenture.
7. We understand that there is no public market for the
Notes and it is unlikely that such market will develop.
8. We are authorized to invest in the Notes and we are
sophisticated institutional investors and have knowledge and experience in
financial and business matters and we are capable of evaluating the merits and
risks of its investment in the Notes and we are able to bear the economic risk
of such investment for an indefinite period of time. We have been given such
information concerning the Notes as we have requested.
9. The Purchaser represents that either (a) it is not
(i) an employee benefit plan (as defined in section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA")), which is subject
to the provisions of Title I of ERISA, or (ii) a plan (as defined in section
4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "code")) that
is subject to Section 4975 of the Code (each of the foregoing,
B-2
140
a "Benefit Plan"), and is not acting on behalf of or investing the assets of a
Benefit Plan, or (b) its acquisition and continued holding of the Notes is
covered by a U.S. Department of Labor Prohibited Transaction Class Exemption.
10. We certify that, in acquiring the Notes, we have
complied with any applicable guidelines or regulations for or limitations on
investments established by each regulatory agency or body, if any, which has
jurisdiction over investments made by us and that our acquisition and retention
of the Notes will not violate the limitations on possession contained in any
such guidelines, regulations or limitations.
11. We will comply with all applicable federal and state
securities laws in connection with any subsequent resale of the Notes.
Very truly yours,
[TRANSFEREE]
B-3
141
TABLE OF CONTENTS
Page
----
ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION........................................2
SECTION 1.01. General Definitions..................................................................2
SECTION 1.02. Compliance Certificates and Opinions................................................23
SECTION 1.03. Form of Documents Delivered to Trustee..............................................24
SECTION 1.04. Acts of Noteholders, etc............................................................25
SECTION 1.05. Notices, etc., to Trustee, Servicer, Issuer and Rating Agencies.....................26
SECTION 1.06. Notice to Noteholders; Waiver.......................................................27
SECTION 1.07. Effect of Headings and Table of Contents............................................27
SECTION 1.08. Successors and Assigns..............................................................27
SECTION 1.09. GOVERNING LAW.......................................................................27
SECTION 1.10. Legal Holidays......................................................................27
SECTION 1.11. Execution in Counterparts...........................................................28
SECTION 1.12. Inspection..........................................................................28
SECTION 1.13. Survival of Representations and Warranties..........................................28
ARTICLE II THE NOTES....................................................................................29
SECTION 2.01. General Provisions..................................................................29
SECTION 2.02. Execution, Authentication, Delivery, and Dating.....................................32
SECTION 2.03. Transfer and Exchange...............................................................32
SECTION 2.04. ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, Lost and Stolen Notes.........................................36
SECTION 2.05. Book-Entry Registration of Class A Notes, Class B Notes, Class C Notes, Class D
Notes and Class R Notes....................................................37
SECTION 2.06. Notice to Clearing Agency...........................................................38
SECTION 2.07. Definitive Class A Notes, Class B Notes, Class C Notes, Class D Notes and Class R
Notes......................................................................38
SECTION 2.08. Payment of Interest and Principal; Rights Preserved.................................40
SECTION 2.09. Persons Deemed Owners...............................................................40
SECTION 2.10. Cancellation........................................................................40
SECTION 2.11. Noteholder Lists....................................................................41
SECTION 2.12. Treasury Securities.................................................................41
ARTICLE III ACCOUNTS; INVESTMENT OF MONEYS; COLLECTION AND APPLICATION OF MONEYS; REPORTS...............41
SECTION 3.01. Trust Accounts; Investments by Trustee..............................................41
SECTION 3.02. Collection of Moneys................................................................44
SECTION 3.03. Collection Account; Payments........................................................44
SECTION 3.04. The Residual Account; Payments......................................................47
SECTION 3.05. The Reserve Account.................................................................47
142
SECTION 3.06. The Liquidity Reserve Account.......................................................48
SECTION 3.07. Reports by Trustee; Notices of Certain Payments.....................................49
SECTION 3.08. Trustee May Rely on Certain Information from Copelco and Servicer...................50
ARTICLE IV RELEASE OF LEASES AND EQUIPMENT..............................................................51
SECTION 4.01. Release of Equipment................................................................51
SECTION 4.02. Release of Leases Upon Final Lease Payment..........................................51
SECTION 4.03. Execution of Documents..............................................................51
ARTICLE V SERVICER EVENTS OF DEFAULT; SUBSTITUTE SERVICER...............................................52
SECTION 5.01. Servicer Events of Default..........................................................52
SECTION 5.02. Substitute Servicer.................................................................52
ARTICLE VI EVENTS OF DEFAULT; REMEDIES..................................................................52
SECTION 6.01. Events of Default...................................................................52
SECTION 6.02. Acceleration of Maturity; Rescission and Annulment..................................53
SECTION 6.03. Remedies............................................................................54
SECTION 6.04. Trustee Shall File Proofs of Claim..................................................55
SECTION 6.05. Trustee May Enforce Claims Without Possession of Notes..............................55
SECTION 6.06. Application of Money Collected......................................................56
SECTION 6.07. Limitation on Suits.................................................................57
SECTION 6.08. Unconditional Right of Noteholders to Receive Principal and Interest................58
SECTION 6.09. Restoration of Rights and Remedies..................................................58
SECTION 6.10. Rights and Remedies Cumulative......................................................59
SECTION 6.11. Delay or Omission Not Waiver........................................................59
SECTION 6.12. Control by Noteholders..............................................................59
SECTION 6.13. Residual Notes Events of Default....................................................59
SECTION 6.14. Undertaking for Costs...............................................................61
SECTION 6.15. Waiver of Stay or Extension Laws....................................................61
SECTION 6.16. Sale of Trust Estate................................................................61
ARTICLE VII THE TRUSTEE.................................................................................63
SECTION 7.01. Certain Duties and Responsibilities.................................................63
SECTION 7.02. Notice of Defaults or Events of Default.............................................64
SECTION 7.03. Certain Rights of Trustee...........................................................64
SECTION 7.04. Not Responsible for Recitals or Issuance of Notes...................................65
SECTION 7.05. May Hold Notes......................................................................65
SECTION 7.06. Money Held in Trust.................................................................65
SECTION 7.07. Compensation, Reimbursement, etc....................................................65
SECTION 7.08. Corporate Trustee Required; Eligibility.............................................66
SECTION 7.09. Resignation and Removal; Appointment of Successor...................................66
SECTION 7.10. Acceptance of Appointment by Successor..............................................67
SECTION 7.11. Merger, Conversion, Consolidation or Succession to Business.........................68
SECTION 7.12. Co-trustees and Separate Trustees...................................................68
ii
143
SECTION 7.13. Acceptance by Trustee...............................................................69
SECTION 7.14. Preferential Collection of Claims Against the Issuer................................69
SECTION 7.15. Reports by Trustee to Noteholders...................................................70
SECTION 7.16. No Proceedings......................................................................70
ARTICLE VIII COVENANTS..................................................................................70
SECTION 8.01. Payment of Principal and Interest...................................................70
SECTION 8.02. Maintenance of Office or Agency; Chief Executive Office.............................70
SECTION 8.03. Money for Payments to Noteholders to be Held in Trust...............................71
SECTION 8.04. Corporate Existence; Merger; Consolidation, etc.....................................72
SECTION 8.05. Protection of Trust Estate; Further Assurances......................................72
SECTION 8.06. [Reserved]..........................................................................73
SECTION 8.07. Performance of Obligations; Assignment and Servicing Agreement......................73
SECTION 8.08. Negative Covenants..................................................................73
SECTION 8.09. Information as to Issuer............................................................74
SECTION 8.10. Taxes...............................................................................75
SECTION 8.11. Indemnification.....................................................................75
SECTION 8.12. Commission Reports; Reports to Trustee; Reports to Noteholders......................75
ARTICLE IX SUPPLEMENTAL INDENTURES......................................................................76
SECTION 9.01. Supplemental Indentures Without Consent of Noteholders..............................76
SECTION 9.02. Supplemental Indentures with Consent of Noteholders.................................76
SECTION 9.03. Execution of Supplemental Indentures................................................77
SECTION 9.04. Effect of Supplemental Indentures...................................................78
SECTION 9.05. Reference in Notes to Supplemental Indentures.......................................78
SECTION 9.06. Compliance with Trust Indenture Act.................................................78
ARTICLE X SATISFACTION AND DISCHARGE....................................................................78
SECTION 10.01. Satisfaction and Discharge of Indenture............................................78
SECTION 10.02. Application of Trust Money.........................................................79
ARTICLE XI MISCELLANEOUS................................................................................80
SECTION 11.01. Trust Indenture Act Controls.......................................................80
SECTION 11.02. Communication by Noteholders with Other Noteholders................................80
SECTION 11.03. Officers' Certificate and Opinion of Counsel as to Conditions Precedent............80
SECTION 11.04. Statements Required in Certificate or Opinion......................................80
SECTION 11.05. Nonpetition........................................................................81
SCHEDULES
SCHEDULE 1 Leases
EXHIBITS
iii
144
EXHIBIT A Forms of Notes and Form of Trustee's Certificate of
Authentication
EXHIBIT B Form of Investor Letter
iv