EXHIBIT 10.1
PURCHASE AGREEMENT
BETWEEN
AFS FUNDING CORP.
PURCHASER
AMERICREDIT FINANCIAL SERVICES, INC.
SELLER
AND
CP FUNDING CORP.
SELLER
DATED AS OF
FEBRUARY 9, 1999
TABLE OF CONTENTS
Page
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ARTICLE I. DEFINITIONS................................................................................1
SECTION 1.1 General..................................................................................1
SECTION 1.2 Specific Terms...........................................................................1
SECTION 1.3 Usage of Terms...........................................................................3
SECTION 1.4 [Reserved]...............................................................................3
SECTION 1.5 No Recourse..............................................................................3
SECTION 1.6 Action by or Consent of Noteholders and Certificateholder................................3
SECTION 1.7 Material Adverse Effect..................................................................3
ARTICLE II. CONVEYANCE OF THE RECEIVABLES AND THE OTHER
CONVEYED PROPERTY..........................................................................4
SECTION 2.1 Conveyance of the Initial Receivables and the Initial Other Conveyed Property............4
SECTION 2.2 Conveyance of the Subsequent Receivables and the Subsequent Other Conveyed
Property..............................................................................4
ARTICLE III. REPRESENTATIONS AND WARRANTIES.............................................................4
SECTION 3.1 Representations and Warranties of AFS....................................................4
SECTION 3.2 Representations and Warranties of CP Funding.............................................6
SECTION 3.3 Representations and Warranties of Purchaser..............................................8
ARTICLE IV. COVENANTS OF SELLERS......................................................................10
SECTION 4.1 Protection of Title of Purchaser........................................................10
SECTION 4.2 Other Liens or Interests................................................................11
SECTION 4.3 Costs and Expenses......................................................................11
SECTION 4.4 Indemnification.........................................................................11
ARTICLE V. REPURCHASES...............................................................................13
SECTION 5.1 Repurchase of Receivables Upon Breach of Warranty.......................................13
SECTION 5.2 Reassignment of Purchased Receivables...................................................15
SECTION 5.3 Waivers.................................................................................15
ARTICLE VI. MISCELLANEOUS.............................................................................15
SECTION 6.1 Liability of Sellers....................................................................15
SECTION 6.2 Merger or Consolidation of Sellers or Purchaser.........................................15
SECTION 6.3 Limitation on Liability of Sellers and Others...........................................16
SECTION 6.4 Sellers May Own Notes or the Certificate................................................16
SECTION 6.5 Amendment...............................................................................16
SECTION 6.6 Notices.................................................................................17
SECTION 6.7 Merger and Integration..................................................................17
SECTION 6.8 Severability of Provisions..............................................................17
SECTION 6.9 Intention of the Parties................................................................17
SECTION 6.10 Governing Law...........................................................................18
SECTION 6.11 Counterparts............................................................................18
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SECTION 6.12 Conveyance of the Receivables and the Other Conveyed Property to the Issuer.............18
SECTION 6.13 Nonpetition Covenant....................................................................18
SCHEDULES
Schedule A -- Schedule of Receivables from AFS
Schedule B -- Schedule of Receivables from CP Funding
Schedule C -- Representations and Warranties from AFS as to the Receivables
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PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT, dated as of February 9, 1999,
executed among AFS Funding Corp., a Nevada corporation, as purchaser
("Purchaser"), CP Funding Corp., a Nevada corporation, as seller ("CP Funding")
and AmeriCredit Financial Services, Inc., a Delaware corporation, as seller
("AFS" and together with CP Funding, the "Sellers").
W I T N E S S E T H :
WHEREAS, Purchaser has agreed to purchase from the Sellers,
and the Sellers, pursuant to this Agreement, are transferring to Purchaser the
Initial Receivables and Other Conveyed Property and with respect to the
Subsequent Receivables will transfer on the related Subsequent Transfer Date the
Subsequent Receivables and the Subsequent Other Conveyed Property.
NOW, THEREFORE, in consideration of the premises and the
mutual agreements hereinafter contained, and for other good and valuable
consideration, the receipt of which is acknowledged, Purchaser and the Sellers,
intending to be legally bound, hereby agree as follows:
ARTICLE I.
DEFINITIONS
SECTION 1.1 General. The specific terms defined in this
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Article include the plural as well as the singular. The words "herein", "hereof"
and "hereunder" and other words of similar import refer to this Agreement as a
whole and not to any particular Article, Section or other subdivision, and
Article, Section, Schedule and Exhibit references, unless otherwise specified,
refer to Articles and Sections of and Schedules and Exhibits to this Agreement.
Capitalized terms used herein without definition shall have the respective
meanings assigned to such terms in the Sale and Servicing Agreement dated as of
February 9, 1999, by and among AFS Funding Corp. (as Seller), AmeriCredit
Financial Services, Inc. (in its individual capacity and as Servicer),
AmeriCredit Automobile Receivables Trust 1999-A (as Issuer) and Bank One, N.A.,
as Backup Servicer and Trust Collateral Agent.
SECTION 1.2 Specific Terms. Whenever used in this Agreement,
--------------
the following words and phrases, unless the context otherwise requires, shall
have the following meanings:
"Agreement" shall mean this Purchase Agreement and all
---------
amendments hereof and supplements hereto.
"Closing Date" means February 19, 1999.
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"Initial Other Conveyed Property" means all property conveyed
-------------------------------
by the Sellers to the Purchaser pursuant to this Agreement other than the
Initial Receivables.
"Initial Receivables" means the Receivables listed on the
-------------------
Schedules of Receivables attached hereto.
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"Issuer" means AmeriCredit Automobile Receivables Trust
------
1999-A.
"Other Conveyed Property" means all property conveyed by the
-----------------------
Purchaser to the Trust pursuant to Sections 2.1(b),(c),(d),(e),(f) and (h) of
the Sale and Servicing Agreement.
"Owner Trustee" means Bankers Trust (Delaware), as Owner
-------------
Trustee appointed and acting pursuant to the Trust Agreement.
"Receivables" means the Initial Receivables and the Subsequent
-----------
Receivables.
"Related Documents" means, with respect to the Subsequent
-----------------
Receivables, the Subsequent Purchase Agreement, the Notes, the Certificate, the
Custodian Agreement, the Sale and Servicing Agreement, the Indenture, the Trust
Agreement, the Policy, the Spread Account Agreement, the Spread Account
Agreement Supplement, the Insurance Agreement, the Lockbox Agreement and the
Underwriting Agreement. The Related Documents to be executed by any party are
referred to herein as "such party's Related Documents," "its Related Documents"
or by a similar expression.
"Repurchase Event" means the occurrence of a breach of any of
----------------
Sellers' representations and warranties hereunder or any other event which
requires the repurchase of a Receivable by AFS under the Sale and Servicing
Agreement.
"Sale and Servicing Agreement" means the Sale and Servicing
----------------------------
Agreement referred to in Section 1.1 hereof.
"Schedule of Representations" means the Schedule of
---------------------------
Representations and Warranties attached hereto as Schedule C.
"Schedules of Receivables" means the schedules of Initial
------------------------
Receivables sold and transferred pursuant to this Agreement which are attached
hereto as Schedules A and B.
"Subsequent Cutoff Date" means the date specified in the
----------------------
related Subsequent Transfer Agreement, provided, however that such date shall be
on or before the Subsequent Transfer Date.
"Subsequent Other Conveyed Property" means all property
----------------------------------
conveyed by the Sellers to the Purchaser pursuant to the Subsequent Purchase
Agreement other than the Subsequent Receivables.
"Subsequent Purchase Agreement" means an agreement by and
-----------------------------
between the Sellers and the Purchaser pursuant to which the Purchaser will
acquire Subsequent Receivables.
"Subsequent Receivables" means the Receivables transferred to
----------------------
the Purchaser pursuant to Section 2.2, which shall be listed on Schedules A and
B to the related Subsequent Purchase Agreement.
"Subsequent Transfer Date" means, with respect to Subsequent
------------------------
Receivables, any date, occurring not more frequently than once a month, during
the Funding Period on which
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Subsequent Receivables are to be transferred to the Purchaser pursuant to this
Agreement, and a Subsequent Purchase Agreement is executed and delivered.
"Trust Collateral Agent" means Bank One, N.A., as trust
----------------------
collateral agent and any successor trust collateral agent appointed and acting
pursuant to the Sale and Servicing Agreement.
"Trustee" means Bank One, N.A., as trustee and any successor
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Trustee appointed and acting pursuant to the Indenture.
SECTION 1.3 Usage of Terms. With respect to all terms used in
--------------
this Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other gender; references to "writing"
include printing, typing, lithography, and other means of reproducing words in a
visible form; references to agreements and other contractual instruments include
all subsequent amendments thereto or changes therein entered into in accordance
with their respective terms and not prohibited by this Agreement or the Sale and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation."
SECTION 1.4 [Reserved].
SECTION 1.5 No Recourse. Without limiting the obligations of
-----------
Sellers hereunder, no recourse may be taken, directly or indirectly, under this
Agreement or any certificate or other writing delivered in connection herewith
or therewith, against any stockholder, officer or director, as such, of Sellers,
or of any predecessor or successor of Sellers.
SECTION 1.6 Action by or Consent of Noteholders and
---------------------------------------
Certificateholder. Whenever any provision of this Agreement refers to action to
-----------------
be taken, or consented to, by Noteholders or the Certificateholder, such
provision shall be deemed to refer to the Certificateholder or Noteholder, as
the case may be, of record as of the Record Date immediately preceding the date
on which such action is to be taken, or consent given, by Noteholders or the
Certificateholder. Solely for the purposes of any action to be taken, or
consented to, by Noteholders or the Certificateholder, any Note or Certificate
registered in the name of the Sellers or any Affiliate thereof shall be deemed
not to be outstanding; provided, however, that, solely for the purpose of
determining whether the Trustee or the Trust Collateral Agent is entitled to
rely upon any such action or consent, only Notes or Certificates which the Owner
Trustee, the Trustee or the Trust Collateral Agent, respectively, knows to be so
owned shall be so disregarded.
SECTION 1.7 Material Adverse Effect. Whenever a determination
-----------------------
is to be made under this Agreement as to whether a given event, action, course
of conduct or set of facts or circumstances could or would have a material
adverse effect on the Noteholders (or any similar or analogous determination),
such determination shall be made without taking into account the funds available
from claims under the Policy.
ARTICLE II.
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CONVEYANCE OF THE RECEIVABLES
AND THE OTHER CONVEYED PROPERTY
SECTION 2.1 (a) Conveyance of the Initial Receivables and the
---------------------------------------------
Initial Other Conveyed Property. Subject to the terms and conditions of this
-------------------------------
Agreement, Sellers hereby sell, transfer, assign, and otherwise convey to
Purchaser without recourse (but without limitation of its obligations in this
Agreement), and Purchaser hereby purchases, all right, title and interest of
Sellers in and to the Initial Receivables and the Initial Other Conveyed
Property. It is the intention of Sellers and Purchaser that the transfer and
assignment contemplated by this Agreement shall constitute a sale of the Initial
Receivables and the Initial Other Conveyed Property from Sellers to Purchaser,
conveying good title thereto free and clear of any liens, and the beneficial
interest in and title to the Initial Receivables and the Initial Other Conveyed
Property shall not be part of Sellers' estates in the event of the filing of a
bankruptcy petition by or against Sellers under any bankruptcy or similar law.
(b) Simultaneously with the conveyance of the Initial
Receivables and the Initial Other Conveyed Property to Purchaser,
Purchaser has paid or caused to be paid to or upon the order of (i) CP
Funding an amount equal to the book value of the Initial Receivables
sold by CP Funding, as set forth on the books and records of CP
Funding, by wire transfer of immediately available funds, and (ii) AFS,
an amount equal to the book value of the Initial Receivables sold by
AFS, as set forth on the books and records of AFS, a portion by wire
transfer of immediately available funds and the remainder as a
contribution to the capital of the Purchaser (a wholly-owned subsidiary
of AFS).
SECTION 2.2 (a) Conveyance of the Subsequent Receivables and
--------------------------------------------
the Subsequent Other Conveyed Property. On each Subsequent Transfer Date and
--------------------------------------
simultaneously with the execution and delivery of the related Subsequent
Purchase Agreement, the Sellers shall sell, transfer, assign, and otherwise
convey to Purchaser without recourse (but without limitation of its obligations
in this Agreement), and Purchaser shall purchase, all right, title and interest
of Sellers in and to the Subsequent Receivables and the Subsequent Other
Conveyed Property. It is the intention of Sellers and Purchaser that the
transfer and assignment contemplated by such Agreement shall constitute a sale
of the Subsequent Receivables and the Subsequent Other Conveyed Property from
Sellers to Purchaser, conveying good title thereto free and clear of any liens,
and the beneficial interest in and title to the Subsequent Receivables and the
Subsequent Other Conveyed Property shall not be part of Sellers' estates in the
event of the filing of a bankruptcy petition by or against Sellers under any
bankruptcy or similar law.
(b) Simultaneously with the conveyance of the Subsequent
Receivables and the Subsequent Other Conveyed Property to Purchaser,
Purchaser shall pay or cause to be paid to or upon the order of (i) CP
Funding an amount equal to the book value of the Subsequent Receivables
sold by CP Funding, as set forth on the books and records of CP
Funding, by wire transfer of immediately available funds, and (ii) AFS,
an amount equal to the book value of the Subsequent Receivables sold by
AFS, as set forth on the books and records of AFS, a portion by wire
transfer of immediately available funds and the remainder as a
contribution to the capital of the Purchaser (a wholly-owned subsidiary
of AFS).
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ARTICLE III.
REPRESENTATIONS AND WARRANTIES
SECTION 3.1 Representations and Warranties of AFS. AFS makes
-------------------------------------
the following representations and warranties as of the date hereof and as of the
Subsequent Transfer Date, as the case may be, on which Purchaser relies in
purchasing the Receivables and the Other Conveyed Property and in transferring
the Receivables and the Other Conveyed Property to the Issuer under the Sale and
Servicing Agreement and on which the Insurer will rely in issuing the Policies.
Such representations are made as of the execution and delivery of this Agreement
and as of the execution and delivery of any Subsequent Purchase Agreement, but
shall survive the sale, transfer and assignment of the Receivables and the Other
Conveyed Property hereunder and under any Subsequent Purchase Agreement, and the
sale, transfer and assignment thereof by Purchaser to the Issuer under the Sale
and Servicing Agreement. AFS and Purchaser agree that Purchaser will assign to
Issuer all Purchaser's rights under this Agreement and that the Trustee will
thereafter be entitled to enforce this Agreement against AFS in the Trustee's
own name on behalf of the Noteholders.
(a) Schedule of Representations. The representations and
---------------------------
warranties set forth on the Schedule of Representations with respect to
the Initial Receivables as of the date hereof, and with respect to the
Subsequent Receivables as of the related Subsequent Transfer Date, are
true and correct.
(b) Organization and Good Standing. AFS has been duly
------------------------------
organized and is validly existing as a corporation in good standing
under the laws of the State of Delaware, with power and authority to
own its properties and to conduct its business as such properties are
currently owned and such business is currently conducted, and had at
all relevant times, and now has, power, authority and legal right to
acquire, own and sell the Receivables and the Other Conveyed Property
to be transferred to Purchaser.
(c) Due Qualification. AFS is duly qualified to do business as
-----------------
a foreign corporation in good standing, and has obtained all necessary
licenses and approvals in all jurisdictions in which the ownership or
lease of its property or the conduct of its business requires such
qualification.
(d) Power and Authority. AFS has the power and authority to
-------------------
execute and deliver this Agreement and its Related Documents and to
carry out its terms and their terms, respectively; AFS has full power
and authority to sell and assign the Receivables and the Other Conveyed
Property to be sold and assigned to and deposited with Purchaser
hereunder and has duly authorized such sale and assignment to Purchaser
by all necessary corporate action; and the execution, delivery and
performance of this Agreement and AFS's Related Documents have been
duly authorized by AFS by all necessary corporate action.
(e) Valid Sale; Binding Obligations. This Agreement and AFS's
-------------------------------
Related Documents have been duly executed and delivered, shall effect a
valid sale, transfer and assignment of the Receivables and the Other
Conveyed Property to the Purchaser,
5
enforceable against AFS and creditors of and purchasers from AFS; and
this Agreement and AFS's Related Documents constitute legal, valid and
binding obligations of AFS enforceable in accordance with their
respective terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting
the enforcement of creditors' rights generally and by equitable
limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or
at law.
(f) No Violation. The consummation of the transactions
------------
contemplated by this Agreement and the Related Documents, and the
fulfillment of the terms of this Agreement and the Related Documents,
shall not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice, lapse of time or
both) a default under, the articles of incorporation or bylaws of AFS,
or any indenture, agreement, mortgage, deed of trust or other
instrument to which AFS is a party or by which it is bound, or result
in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement, mortgage, deed
of trust or other instrument, other than this Agreement, the Spread
Account Agreement, the Sale and Servicing Agreement and the Indenture,
or violate any law, order, rule or regulation applicable to AFS of any
court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over AFS or
any of its properties.
(g) No Proceedings. There are no proceedings or investigations
--------------
pending or, to AFS's knowledge, threatened against AFS, before any
court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over AFS or its
properties (i) asserting the invalidity of this Agreement or any of the
Related Documents, (ii) seeking to prevent the issuance of the Notes or
the consummation of any of the transactions contemplated by this
Agreement or any of the Related Documents, (iii) seeking any
determination or ruling that might materially and adversely affect the
performance by AFS of its obligations under, or the validity or
enforceability of, this Agreement or any of the Related Documents or
(iv) seeking to affect adversely the federal income tax or other
federal, state or local tax attributes of, or seeking to impose any
excise, franchise, transfer or similar tax upon, the transfer and
acquisition of the Receivables and the Other Conveyed Property
hereunder or under the Sale and Servicing Agreement.
(h) Chief Executive Office. The chief executive office of AFS
----------------------
is located at ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇.
SECTION 3.2 Representations and Warranties of CP Funding. CP
--------------------------------------------
Funding makes the following representations and warranties as of the date hereof
and as of the Subsequent Transfer Date, as the case may be, on which Purchaser
relies in purchasing the Receivables and the Other Conveyed Property and in
transferring the Receivables and the Other Conveyed Property to the Issuer under
the Sale and Servicing Agreement and on which the Insurer will rely in issuing
the Policies. Such representations are made as of the execution and delivery of
this Agreement and as of the execution and delivery of any Subsequent Purchase
Agreement, but shall survive the sale, transfer and assignment of the
Receivables and the Other
6
Conveyed Property hereunder and under any Subsequent Purchase Agreement, and the
sale, transfer and assignment thereof by Purchaser to the Issuer under the Sale
and Servicing Agreement. CP Funding and Purchaser agree that Purchaser will
assign to Issuer all Purchaser's rights under this Agreement and that the
Trustee will thereafter be entitled to enforce this Agreement against CP Funding
in the Trustee's own name on behalf of the Noteholders.
(a) Organization and Good Standing. CP Funding has been duly
------------------------------
organized and is validly existing as a corporation in good standing
under the laws of the State of Nevada, with power and authority to own
its properties and to conduct its business as such properties are
currently owned and such business is currently conducted, and had at
all relevant times, and now has, power, authority and legal right to
acquire, own and sell the Receivables and the Other Conveyed Property
to be transferred to Purchaser.
(b) Power and Authority. CP Funding has the power and
-------------------
authority to execute and deliver this Agreement and its Related
Documents and to carry out its terms and their terms, respectively; CP
Funding has full power and authority to sell and assign the Receivables
and the Other Conveyed Property to be sold and assigned to and
deposited with Purchaser hereunder and has duly authorized such sale
and assignment to Purchaser by all necessary corporate action; and the
execution, delivery and performance of this Agreement and CP Funding's
Related Documents have been duly authorized by CP Funding by all
necessary corporate action.
(c) Due Qualification. CP Funding is duly qualified to do
-----------------
business as a foreign corporation in good standing, and has obtained
all necessary licenses and approvals in all jurisdictions in which the
ownership or lease of its property or the conduct of its business
requires such qualification
(d) Valid Sale; Binding Obligations. This Agreement and CP
-------------------------------
Funding's Related Documents have been duly executed and delivered,
shall effect a valid sale, transfer and assignment of the Receivables
and the Other Conveyed Property to the Purchaser, enforceable against
CP Funding and creditors of and purchasers from CP Funding; and this
Agreement and CP Funding's Related Documents constitute legal, valid
and binding obligations of CP Funding enforceable in accordance with
their respective terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting
the enforcement of creditors' rights generally and by equitable
limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or
at law.
(e) No Violation. The consummation of the transactions
------------
contemplated by this Agreement and the Related Documents and the
fulfillment of the terms of this Agreement and the Related Documents
shall not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice, lapse of time or
both) a default under, the articles of incorporation or bylaws of CP
Funding, or any indenture, agreement, mortgage, deed of trust or other
instrument to which CP Funding is a party or by which it is bound, or
result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement,
mortgage, deed of trust or other instrument, other than this Agreement,
the Spread Account Agreement, the Sale
7
and Servicing Agreement and the Indenture, or violate any law, order,
rule or regulation applicable to CP Funding of any court or of any
federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over CP Funding or any
of its properties.
(f) No Proceedings. There are no proceedings or investigations
--------------
pending or, to CP Funding's knowledge, threatened against CP Funding,
before any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality having jurisdiction over CP
Funding or its properties (i) asserting the invalidity of this
Agreement or any of the Related Documents, (ii) seeking to prevent the
issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or any of the Related Documents, (iii)
seeking any determination or ruling that might materially and adversely
affect the performance by CP Funding of its obligations under, or the
validity or enforceability of, this Agreement or any of the Related
Documents, or (iv) seeking to affect adversely the federal income tax
or other federal, state or local tax attributes of, or seeking to
impose any excise, franchise, transfer or similar tax upon, the
transfer and acquisition of the Receivables and the Other Conveyed
Property hereunder or under the Sale and Servicing Agreement.
(g) Chief Executive Office. The chief executive office of CP
----------------------
Funding is located at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇, ▇▇▇▇▇▇
▇▇▇▇▇.
SECTION 3.3 Representations and Warranties of Purchaser.
-------------------------------------------
Purchaser makes the following representations and warranties, on which Sellers
rely in selling, assigning, transferring and conveying the Receivables and the
Other Conveyed Property to Purchaser hereunder. Such representations are made as
of the execution and delivery of this Agreement, but shall survive the sale,
transfer and assignment of the Receivables and the Other Conveyed Property
hereunder and the sale, transfer and assignment thereof by Purchaser to the
Issuer under the Sale and Servicing Agreement.
(a) Organization and Good Standing. Purchaser has been duly
------------------------------
organized and is validly existing and in good standing as a corporation
under the laws of the State of Nevada, with the power and authority to
own its properties and to conduct its business as such properties are
currently owned and such business is currently conducted, and had at
all relevant times, and has, full power, authority and legal right to
acquire and own the Receivables and the Other Conveyed Property, and to
transfer the Receivables and the Other Conveyed Property to the Issuer
pursuant to the Sale and Servicing Agreement.
(b) Due Qualification. Purchaser is duly qualified to do
-----------------
business as a foreign corporation in good standing, and has obtained
all necessary licenses and approvals in all jurisdictions where the
failure to do so would materially and adversely affect Purchaser's
ability to acquire the Receivables or the Other Conveyed Property, and
to transfer the Receivables and the Other Conveyed Property to the
Issuer pursuant to the Sale and Servicing Agreement, or the validity or
enforceability of the Receivables and the Other Conveyed Property or to
perform Purchaser's obligations hereunder and under the Purchaser's
Related Documents.
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(c) Power and Authority. Purchaser has the power, authority
-------------------
and legal right to execute and deliver this Agreement and to carry out
the terms hereof and to acquire the Receivables and the Other Conveyed
Property hereunder; and the execution, delivery and performance of this
Agreement and all of the documents required pursuant hereto have been
duly authorized by Purchaser by all necessary action.
(d) No Consent Required. Purchaser is not required to obtain
-------------------
the consent of any other Person, or any consent, license, approval or
authorization or registration or declaration with, any governmental
authority, bureau or agency in connection with the execution, delivery
or performance of this Agreement and the Related Documents, except for
such as have been obtained, effected or made.
(e) Binding Obligation. This Agreement constitutes a legal,
------------------
valid and binding obligation of Purchaser, enforceable against
Purchaser in accordance with its terms, subject, as to enforceability,
to applicable bankruptcy, insolvency, reorganization, conservatorship,
receivership, liquidation and other similar laws and to general
equitable principles.
(f) No Violation. The execution, delivery and performance by
------------
Purchaser of this Agreement, the consummation of the transactions
contemplated by this Agreement and the Related Documents and the
fulfillment of the terms of this Agreement and the Related Documents do
not and will not conflict with, result in any breach of any of the
terms and provisions of, or constitute (with or without notice or lapse
of time) a default under, the certificate of incorporation or bylaws of
Purchaser, or conflict with or breach any of the terms or provisions
of, or constitute (with or without notice or lapse of time) a default
under, any indenture, agreement, mortgage, deed of trust or other
instrument to which Purchaser is a party or by which Purchaser is bound
or to which any of its properties are subject, or result in the
creation or imposition of any Lien upon any of its properties pursuant
to the terms of any such indenture, agreement, mortgage, deed of trust
or other instrument (other than the Sale and Servicing Agreement and
the Spread Account Agreement), or violate any law, order, rule or
regulation, applicable to Purchaser or its properties, of any federal
or state regulatory body, any court, administrative agency, or other
governmental instrumentality having jurisdiction over Purchaser or any
of its properties.
(g) No Proceedings. There are no proceedings or investigations
--------------
pending, or, to the knowledge of Purchaser, threatened against
Purchaser, before any court, regulatory body, administrative agency, or
other tribunal or governmental instrumentality having jurisdiction over
Purchaser or its properties: (i) asserting the invalidity of this
Agreement or any of the Related Documents, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement
or any of the Related Documents, (iii) seeking any determination or
ruling that might materially and adversely affect the performance by
Purchaser of its obligations under, or the validity or enforceability
of, this Agreement or any of the Related Documents or (iv) that may
adversely affect the federal or state income tax attributes of, or
seeking to impose any excise, franchise, transfer or similar tax upon,
the transfer and acquisition of the Receivables and the Other
9
Conveyed Property hereunder or the transfer of the Receivables and the
Other Conveyed Property to the Issuer pursuant to the Sale and
Servicing Agreement.
In the event of any breach of a representation and warranty
made by Purchaser hereunder, Sellers covenant and agree that they will not take
any action to pursue any remedy that they may have hereunder, in law, in equity
or otherwise, until a year and a day have passed since the date on which all
Notes, Certificates, pass-through certificates or other similar securities
issued by Purchaser, or a trust or similar vehicle formed by Purchaser, have
been paid in full. Sellers and Purchaser agree that damages will not be an
adequate remedy for such breach and that this covenant may be specifically
enforced by Purchaser, Issuer or by the Trustee on behalf of the Noteholders and
Owner Trustee on behalf of the Certificateholder.
ARTICLE IV.
COVENANTS OF SELLERS
SECTION 4.1 Protection of Title of Purchaser.
--------------------------------
(a) At or prior to the Closing Date, each Seller shall have
filed or caused to be filed a UCC-1 financing statement, executed by
such Seller as seller or debtor, naming Purchaser as purchaser or
secured party and describing the Initial Receivables and the Initial
Other Conveyed Property being sold by it to Purchaser as collateral,
with the office of the Secretary of State of the State of Texas and in
such other locations as Purchaser shall have required. At or prior to
any Subsequent Transfer Date, each Seller shall file or cause to be
filed a UCC-1 financing statement executed by such Seller, as seller or
debtor, naming the Purchaser as purchaser or secured party and
describing the Subsequent Receivables and the Subsequent Other Conveyed
Property being sold by it to the Purchaser as collateral, with the
office of the Secretary of State of the State of Texas and in such
other locations as Purchaser shall require. From time to time
thereafter, Sellers shall execute and file such financing statements
and cause to be executed and filed such continuation statements, all in
such manner and in such places as may be required by law fully to
preserve, maintain and protect the interest of Purchaser under this
Agreement, of the Issuer under the Sale and Servicing Agreement and of
the Trust Collateral Agent under the Indenture in the Receivables and
the Other Conveyed Property and in the proceeds thereof. Sellers shall
deliver (or cause to be delivered) to Purchaser, the Trust Collateral
Agent and the Insurer file-stamped copies of, or filing receipts for,
any document filed as provided above, as soon as available following
such filing. In the event that either Seller fails to perform its
obligations under this subsection, Purchaser, Issuer or the Trust
Collateral Agent may do so, at the expense of such Seller.
(b) Sellers shall not change their name, identity, or
corporate structure in any manner that would, could or might make any
financing statement or continuation statement filed by Sellers (or by
Purchaser, Issuer or the Trust Collateral Agent on behalf of Sellers)
in accordance with paragraph (a) above seriously misleading within the
meaning of ss. 9-402(7) of the UCC, unless they shall have given
Purchaser, Issuer and the Trust Collateral Agent at least 60 days'
prior written notice thereof, and shall promptly
10
file appropriate amendments to all previously filed financing
statements and continuation statements.
(c) Sellers shall give Purchaser, the Issuer, the Insurer (so
long as an Insurer Default shall not have occurred and be continuing)
and the Trust Collateral Agent at least 60 days' prior written notice
of any relocation of their principal executive offices, if as a result
of such relocation, the applicable provisions of the UCC would require
the filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement. AFS shall at
all times maintain each office from which it services Receivables and
its principal executive office within the United States of America.
(d) Prior to the Closing Date and with respect to Subsequent
Receivables, the Subsequent Transfer Date, AFS has maintained accounts
and records as to each Receivable accurately and in sufficient detail
to permit (i) the reader thereof to know at any time as of or prior to
the Closing Date and with respect to Subsequent Receivables, the
Subsequent Transfer Date, the status of such Receivable, including
payments and recoveries made and payments owing (and the nature of
each) and (ii) reconciliation between payments or recoveries on (or
with respect to) each Receivable and the Principal Balance as of the
Closing Date and with respect to Subsequent Receivables, the Subsequent
Transfer Date. AFS shall maintain its computer systems so that, from
and after the time of sale under this Agreement of the Receivables to
Purchaser, and the conveyance of the Receivables by Purchaser to the
Issuer, AFS's master computer records (including archives) that shall
refer to a Receivable indicate clearly that such Receivable has been
sold to Purchaser and has been conveyed by Purchaser to the Issuer.
Indication of the Issuer's ownership of a Receivable shall be deleted
from or modified on AFS's computer systems when, and only when, the
Receivable shall become a Purchased Receivable or shall have been paid
in full.
(e) If at any time Sellers shall propose to sell, grant a
security interest in, or otherwise transfer any interest in any motor
vehicle receivables to any prospective purchaser, lender or other
transferee, Sellers shall give to such prospective purchaser, lender,
or other transferee computer tapes, records, or print-outs (including
any restored from archives) that, if they shall refer in any manner
whatsoever to any Receivable (other than a Purchased Receivable), shall
indicate clearly that such Receivable has been sold to Purchaser, sold
by Purchaser to Issuer, and is owned by the Issuer.
11
SECTION 4.2 Other Liens or Interests. Except for the
------------------------
conveyances hereunder, Sellers will not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any Lien on the
Receivables or the Other Conveyed Property or any interest therein, and Sellers
shall defend the right, title, and interest of Purchaser and the Issuer in and
to the Receivables and the Other Conveyed Property against all claims of third
parties claiming through or under Sellers.
SECTION 4.3 Costs and Expenses. Sellers shall pay all
------------------
reasonable costs and disbursements in connection with the performance of its
obligations hereunder and under its Related Documents.
SECTION 4.4 Indemnification.
---------------
(a) Sellers shall defend, indemnify and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any and all costs, expenses, losses,
damages, claims, and liabilities, arising out of or resulting from any
breach of any of Sellers' representations and warranties contained
herein.
(b) Sellers shall defend, indemnify and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any and all costs, expenses, losses,
damages, claims, and liabilities, arising out of or resulting from the
use, ownership or operation by Sellers or any affiliate thereof of a
Financed Vehicle.
(c) Sellers shall defend, indemnify and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any and all costs, expenses, losses,
damages, claims and liabilities arising out of or resulting from any
action taken, or failed to be taken, by it in respect of any portion of
the Receivables other than in accordance with this Agreement or the
Sale and Servicing Agreement.
(d) Sellers agree to pay, and shall defend, indemnify and hold
harmless Purchaser, the Issuer, the Trust Collateral Agent, the
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders and
the Certificateholder from and against any taxes that may at any time
be asserted against Purchaser, the Issuer, the Trust Collateral Agent,
the Trustee, the Backup Servicer, the Owner Trustee, the Noteholders
and the Certificateholder with respect to the transactions contemplated
in this Agreement, including, without limitation, any sales, gross
receipts, general corporation, tangible or intangible personal
property, privilege, or license taxes (but not including any taxes
asserted with respect to, and as of the date of, the sale, transfer and
assignment of the Receivables and the Other Conveyed Property to
Purchaser and by Purchaser to the Issuer or the issuance and original
sale of the Notes or issuance of the Certificate, or asserted with
respect to ownership of the Receivables and Other Conveyed Property
which shall be indemnified by Sellers pursuant to clause (e) below, or
federal, state or other income taxes, arising out of distributions on
the Notes or the Certificate or transfer taxes arising in connection
with the transfer of the Notes or the Certificate) and costs and
expenses in defending against
12
the same, arising by reason of the acts to be performed by Sellers
under this Agreement or imposed against such Persons.
(e) Sellers agree to pay, and to indemnify, defend and hold
harmless Purchaser, the Issuer, the Trust Collateral Agent, the
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders and
the Certificateholder from, any taxes which may at any time be asserted
against such Persons with respect to, and as of the date of, the
conveyance or ownership of the Receivables or the Other Conveyed
Property hereunder and under any Subsequent Purchase Agreement and the
conveyance or ownership of the Receivables under the Sale and Servicing
Agreement or the issuance and original sale of the Notes or the
issuance of the Certificate, including, without limitation, any sales,
gross receipts, personal property, tangible or intangible personal
property, privilege or license taxes (but not including any federal or
other income taxes, including franchise taxes, arising out of the
transactions contemplated hereby or transfer taxes arising in
connection with the transfer of the Notes or the Certificate) and costs
and expenses in defending against the same, arising by reason of the
acts to be performed by Sellers under this Agreement or imposed against
such Persons.
(f) Sellers shall defend, indemnify, and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any and all costs, expenses, losses,
claims, damages, and liabilities to the extent that such cost, expense,
loss, claim, damage, or liability arose out of, or was imposed upon
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders or the
Certificateholder through the negligence, willful misfeasance, or bad
faith of Sellers in the performance of their duties under this
Agreement or by reason of reckless disregard of Sellers' obligations
and duties under this Agreement.
(g) Sellers shall indemnify, defend and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any loss, liability or expense
incurred by reason of the violation by Sellers of federal or state
securities laws in connection with the registration or the sale of the
Notes.
(h) Sellers shall indemnify, defend and hold harmless
Purchaser, the Issuer, the Trust Collateral Agent, the Trustee, the
Backup Servicer, the Owner Trustee, the Noteholders and the
Certificateholder from and against any loss, liability or expense
imposed upon, or incurred by, Purchaser, the Issuer, the Trust
Collateral Agent, the Trustee, the Backup Servicer, the Owner Trustee,
the Noteholders or the Certificateholder as result of the failure of
any Receivable, or the sale of the related Financed Vehicle, to comply
with all requirements of applicable law.
(i) Sellers shall defend, indemnify, and hold harmless
Purchaser from and against all costs, expenses, losses, claims,
damages, and liabilities arising out of or incurred in connection with
the acceptance or performance of Sellers' trusts and duties as Servicer
under the Sale and Servicing Agreement, except to the extent that such
cost, expense,
13
loss, claim, damage, or liability shall be due to the willful
misfeasance, bad faith, or negligence (except for errors in judgment)
of Purchaser.
(j) Sellers shall indemnify the Owner Trustee and its
officers, directors, successors, assigns, agents and servants jointly
and severally with the Purchaser pursuant to Section 7.2 of the Trust
Agreement.
Indemnification under this Section 4.4 shall include
reasonable fees and expenses of counsel and expenses of litigation and shall
survive payment of the Notes and the Certificate. The indemnity obligations
hereunder shall be in addition to any obligation that Sellers may otherwise
have.
ARTICLE V.
REPURCHASES
SECTION 5.1 Repurchase of Receivables Upon Breach of Warranty.
-------------------------------------------------
Upon the occurrence of a Repurchase Event, AFS shall, unless the breach which is
the subject of such Repurchase Event shall have been cured in all material
respects, repurchase the Receivable relating thereto from the Issuer and,
simultaneously with the repurchase of the Receivable, AFS shall deposit the
Purchase Amount in full, without deduction or offset, to the Collection Account,
pursuant to Section 3.2 of the Sale and Servicing Agreement. It is understood
and agreed that, except as set forth in Section 6.1 hereof, the obligation of
AFS to repurchase any Receivable, as to which a breach occurred and is
continuing, shall, if such obligation is fulfilled, constitute the sole remedy
against AFS for such breach available to Purchaser, the Issuer, the Insurer, the
Backup Servicer, the Noteholders, the Certificateholder, the Trust Collateral
Agent on behalf of the Noteholders or the Owner Trustee on behalf of the
Certificateholder. The provisions of this Section 5.1 are intended to grant the
Issuer and the Trust Collateral Agent a direct right against AFS to demand
performance hereunder, and in connection therewith, AFS waives any requirement
of prior demand against Purchaser with respect to such repurchase obligation.
Any such repurchase shall take place in the manner specified in Section 3.2 of
the Sale and Servicing Agreement. Notwithstanding any other provision of this
Agreement or the Sale and Servicing Agreement to the contrary, the obligation of
AFS under this Section shall not terminate upon a termination of AFS as Servicer
under the Sale and Servicing Agreement and shall be performed in accordance with
the terms hereof notwithstanding the failure of the Servicer or Purchaser to
perform any of their respective obligations with respect to such Receivable
under the Sale and Servicing Agreement.
In addition to the foregoing and notwithstanding whether the
related Receivable shall have been purchased by AFS, AFS shall indemnify the
Issuer, the Trust Collateral Agent, the Trustee, the Backup Servicer, the Owner
Trustee, the Insurer, the Noteholders and the Certificateholder from and against
all costs, expenses, losses, damages, claims and liabilities, including
reasonable fees and expenses of counsel, which may be asserted against or
incurred by any of them as a result of third party claims arising out of the
events or facts giving rise to such Repurchase Events.
14
SECTION 5.2 Reassignment of Purchased Receivables. Upon
-------------------------------------
deposit in the Collection Account of the Purchase Amount of any Receivable
repurchased by AFS under Section 5.1 hereof, Purchaser and the Issuer shall take
such steps as may be reasonably requested by AFS in order to assign to AFS all
of Purchaser's and the Issuer's right, title and interest in and to such
Receivable and all security and documents and all Other Conveyed Property
conveyed to Purchaser and the Issuer directly relating thereto, without
recourse, representation or warranty, except as to the absence of Liens created
by or arising as a result of actions of Purchaser or the Issuer. Such assignment
shall be a sale and assignment outright, and not for security. If, following the
reassignment of a Purchased Receivable, in any enforcement suit or legal
proceeding, it is held that AFS may not enforce any such Receivable on the
ground that it shall not be a real party in interest or a holder entitled to
enforce the Receivable, Purchaser and the Issuer shall, at the expense of AFS,
take such steps as AFS deems reasonably necessary to enforce the Receivable,
including bringing suit in Purchaser's or in the Issuer's name.
SECTION 5.3 Waivers. No failure or delay on the part of
-------
Purchaser, or the Issuer as assignee of Purchaser, in exercising any power,
right or remedy under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or remedy preclude
any other or future exercise thereof or the exercise of any other power, right
or remedy.
ARTICLE VI.
MISCELLANEOUS
SECTION 6.1 Liability of Sellers. Sellers shall be liable in
--------------------
accordance herewith only to the extent of the obligations in this Agreement
specifically undertaken by Sellers and the representations and warranties of
Sellers.
SECTION 6.2 Merger or Consolidation of Sellers or Purchaser.
-----------------------------------------------
Any corporation or other entity (i) into which Sellers or Purchaser may be
merged or consolidated, (ii) resulting from any merger or consolidation to which
Sellers or Purchaser is a party or (iii) succeeding to the business of Sellers
or Purchaser, in the case of Purchaser, which corporation has a certificate of
incorporation containing provisions relating to limitations on business and
other matters substantively identical to those contained in Purchaser's
certificate of incorporation, provided that in any of the foregoing cases such
corporation shall execute an agreement of assumption to perform every obligation
of Sellers or Purchaser, as the case may be, under this Agreement and, whether
or not such assumption agreement is executed, shall be the successor to Sellers
or Purchaser, as the case may be, hereunder (without relieving Sellers or
Purchaser of their responsibilities hereunder, if it survives such merger or
consolidation) without the execution or filing of any document or any further
action by any of the parties to this Agreement. Notwithstanding the foregoing,
so long as an Insurer Default shall not have occurred and be continuing,
Purchaser shall not merge or consolidate with any other Person or permit any
other Person to become the successor to Purchaser's business without the prior
written consent of the Insurer. Sellers or Purchaser shall promptly inform the
other party, the Issuer, the Trust Collateral Agent, the Owner Trustee and, so
long as an Insurer Default shall not have occurred and be continuing, the
Insurer of such merger, consolidation or purchase and assumption.
Notwithstanding the foregoing, as a condition to the consummation of the
transactions referred to
15
in clauses (i), (ii) and (iii) above, (x) immediately after giving effect to
such transaction, no representation or warranty made pursuant to Sections 3.1,
3.2 and 3.3 of this Agreement shall have been breached (for purposes hereof,
such representations and warranties shall speak as of the date of the
consummation of such transaction) and no event that, after notice or lapse of
time, or both, would become an event of default under the Insurance Agreement,
shall have occurred and be continuing, (y) Sellers or Purchaser, as applicable,
shall have delivered written notice of such consolidation, merger or purchase
and assumption to the Rating Agencies prior to the consummation of such
transaction and shall have delivered to the Issuer and the Trust Collateral
Agent an Officer's Certificate and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply with
this Section 6.2 and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with, and (z) Sellers
or Purchaser, as applicable, shall have delivered to the Issuer and the Trust
Collateral Agent an Opinion of Counsel, stating, in the opinion of such counsel,
either (A) all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary to preserve and protect
the interest of the Issuer and the Trust Collateral Agent in the Receivables and
reciting the details of the filings or (B) no such action shall be necessary to
preserve and protect such interest.
SECTION 6.3 Limitation on Liability of Sellers and Others.
---------------------------------------------
Sellers and any director, officer, employee or agent thereof may rely in good
faith on the advice of counsel or on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising
under this Agreement. Sellers shall not be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its obligations
under this Agreement or its Related Documents and that in its opinion may
involve it in any expense or liability.
SECTION 6.4 Sellers May Own Notes or the Certificate. Subject
----------------------------------------
to the provisions of the Sale and Servicing Agreement, Sellers and any Affiliate
of Sellers may in their individual or any other capacity become the owner or
pledgee of Notes or the Certificate with the same rights as they would have if
they were not Sellers or an Affiliate thereof.
SECTION 6.5 Amendment.
---------
(a) This Agreement may be amended by Sellers and Purchaser
with the prior written consent of the Insurer (so long as an Insurer
Default shall not have occurred and be continuing) but without the
consent of the Trust Collateral Agent, the Owner Trustee, the
Certificateholder or any of the Noteholders (i) to cure any ambiguity
or (ii) to correct any provisions in this Agreement; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel
delivered to the Issuer, the Owner Trustee and the Trust Collateral
Agent, adversely affect in any material respect the interests of any
Certificateholder or Noteholder.
(b) This Agreement may also be amended from time to time by
Sellers and Purchaser, with the prior written consent of the Insurer
(so long as an Insurer Default shall not have occurred and be
continuing) and with the consent of the Trust Collateral Agent and, if
required, the Certificateholder and the Noteholders, in accordance with
the Sale and Servicing Agreement, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the
provisions of this Agreement, or of modifying in
16
any manner the rights of the Certificateholder or Noteholders;
provided, however, the Sellers provide the Trust Collateral Agent with
-------- -------
an Opinion of Counsel, (which may be provided by the Sellers' internal
counsel) that no such amendment shall increase or reduce in any manner
the amount of, or accelerate or delay the timing of, collections of
payments on Receivables or distributions that shall be required to be
made on any Note or Certificate.
(c) Prior to the execution of any such amendment or consent,
Sellers shall have furnished written notification of the substance of
such amendment or consent to each Rating Agency.
(d) It shall not be necessary for the consent of
Certificateholder or Noteholders pursuant to this Section to approve
the particular form of any proposed amendment or consent, but it shall
be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization
of the execution thereof by Certificateholder or Noteholders shall be
subject to such reasonable requirements as the Trust Collateral Agent
may prescribe, including the establishment of record dates. The consent
of a Holder of a Certificate or a Note given pursuant to this Section
or pursuant to any other provision of this Agreement shall be
conclusive and binding on such Holder and on all future Holders of such
Certificate or Note and of any Certificate or Note issued upon the
transfer thereof or in exchange thereof or in lieu thereof whether or
not notation of such consent is made upon the Certificate or Note.
SECTION 6.6 Notices. All demands, notices and communications
-------
to Sellers or Purchaser hereunder shall be in writing, personally delivered, or
sent by telecopier (subsequently confirmed in writing), reputable overnight
courier or mailed by certified mail, return receipt requested, and shall be
deemed to have been given upon receipt (a) in the case of Sellers, to
AmeriCredit Financial Services, Inc., ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇-▇▇▇▇, Attention: Chief Financial Officer, or (b) in the case of Purchaser,
to AFS Funding Corp., ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇, Attention: Chief
Financial Officer, or such other address as shall be designated by a party in a
written notice delivered to the other party or to the Issuer, Owner Trustee or
the Trust Collateral Agent, as applicable.
SECTION 6.7 Merger and Integration. Except as specifically
----------------------
stated otherwise herein, this Agreement and Related Documents set forth the
entire understanding of the parties relating to the subject matter hereof, and
all prior understandings, written or oral, are superseded by this Agreement and
the Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.
SECTION 6.8 Severability of Provisions. If any one or more of
--------------------------
the covenants, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, provisions or terms shall be
deemed severable from the remaining covenants, provisions or terms of this
Agreement and shall in no way affect the validity or enforceability of the other
provisions of this Agreement.
SECTION 6.9 Intention of the Parties. The execution and
------------------------
delivery of this Agreement shall constitute an acknowledgment by Sellers and
Purchaser that they intend that the
17
assignment and transfer herein contemplated constitute a sale and assignment
outright, and not for security, of the Receivables and the Other Conveyed
Property, conveying good title thereto free and clear of any Liens, from Sellers
to Purchaser, and that the Receivables and the Other Conveyed Property shall not
be a part of Sellers' estates in the event of the bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding, or other proceeding under any
federal or state bankruptcy or similar law, or the occurrence of another similar
event, of, or with respect to Sellers. In the event that such conveyance is
determined to be made as security for a loan made by Purchaser, the Issuer, the
Noteholders or the Certificateholder to Sellers, the parties intend that Sellers
shall have granted to Purchaser a security interest in all of Sellers' right,
title and interest in and to the Receivables and the Other Conveyed Property
conveyed pursuant to Section 2.1 hereof, and that this Agreement shall
constitute a security agreement under applicable law.
SECTION 6.10 Governing Law. This Agreement shall be construed
-------------
in accordance with the laws of the State of New York without regard to the
principles of conflicts of laws thereof and the obligations, rights and remedies
of the parties under this Agreement shall be determined in accordance with such
laws.
SECTION 6.11 Counterparts. For the purpose of facilitating the
------------
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.
SECTION 6.12 Conveyance of the Receivables and the Other
-------------------------------------------
Conveyed Property to the Issuer. Sellers acknowledge that Purchaser intends,
-------------------------------
pursuant to the Sale and Servicing Agreement, to convey the Receivables and the
Other Conveyed Property, together with its rights under this Agreement, to the
Issuer on the date hereof and on the Subsequent Transfer Date in the case of
Subsequent Receivables. Sellers acknowledge and consent to such conveyance and
pledge and waive any further notice thereof and covenant and agree that the
representations and warranties of Sellers contained in this Agreement and the
rights of Purchaser hereunder are intended to benefit the Insurer, the Issuer,
the Owner Trustee, the Trust Collateral Agent, the Noteholders and the
Certificateholder. In furtherance of the foregoing, Sellers covenant and agree
to perform their duties and obligations hereunder, in accordance with the terms
hereof for the benefit of the Insurer, the Issuer, the Owner Trustee, the Trust
Collateral Agent, the Noteholders and the Certificateholder and that,
notwithstanding anything to the contrary in this Agreement, Sellers shall be
directly liable to the Issuer, the Owner Trustee, the Trust Collateral Agent,
the Noteholders and the Certificateholder (notwithstanding any failure by the
Servicer, the Backup Servicer or the Purchaser to perform their respective
duties and obligations hereunder or under Related Documents) and that the Trust
Collateral Agent may enforce the duties and obligations of Sellers under this
Agreement against Sellers for the benefit of the Insurer, the Owner Trustee, the
Trust Collateral Agent, the Noteholders and the Certificateholder.
SECTION 6.13 Nonpetition Covenant. Neither Purchaser nor
--------------------
Sellers shall petition or otherwise invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
the Purchaser or the Issuer under any federal or state bankruptcy, insolvency or
similar law or appointing a receiver, liquidator, assignee, trustee,
18
custodian, sequestrator or other similar official of the Purchaser or the Issuer
or any substantial part of their respective property, or ordering the winding up
or liquidation of the affairs of the Purchaser or the Issuer.
19
IN WITNESS WHEREOF, the parties have caused this Purchase
Agreement to be duly executed by their respective officers as of the day and
year first above written.
AFS FUNDING CORP., as Purchaser
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Executive Vice President and Treasurer
AMERICREDIT FINANCIAL SERVICES,
INC., as Seller
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Executive Vice President and Treasurer
CP FUNDING CORP., as Seller
By /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Executive Vice President and Treasurer
Accepted:
BANK ONE, N.A.,
as Trustee and Trust Collateral Agent
By /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
----------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: Authorized Officer
[Purchase Agreement]
SCHEDULE A
SCHEDULE OF RECEIVABLES FROM AFS
SCHEDULE B
SCHEDULE OF RECEIVABLES FROM CP FUNDING
SCHEDULE C (TO THE PURCHASE AGREEMENT)
REPRESENTATIONS AND WARRANTIES OF
---------------------------------
AMERICREDIT FINANCIAL SERVICES, INC. ("AMERICREDIT")
----------------------------------------------------
1. Characteristics of Receivables. Each Receivable (A) was originated by
------------------------------
a Dealer for the retail sale of a Financed Vehicle in the ordinary course of
such Dealer's business in accordance with AmeriCredit's credit policies and such
Dealer had all necessary licenses and permits to originate Receivables in the
state where such Dealer was located, was fully and properly executed by the
parties thereto, was purchased by AmeriCredit from such Dealer under an existing
Dealer Agreement or pursuant to a Dealer Assignment with AmeriCredit and was
validly assigned by such Dealer to AmeriCredit pursuant to a Dealer Assignment,
(B) contains customary and enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for realization against the
collateral security, (C) is a Receivable which provides for level monthly
payments (provided that the period in the first Collection Period and the
payment in the final Collection Period of the Receivable may be minimally
different from the normal period and level payment) which, if made when due,
shall fully amortize the Amount Financed over the original term and (D) has not
been amended or collections with respect to which waived, other than as
evidenced in the Receivable File relating thereto.
2. No Fraud or Misrepresentation. Each Receivable was originated by a
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Dealer and was sold by the Dealer to AmeriCredit and by AmeriCredit either (A)
to AFS Funding Corp. ("AFS Funding") or (B) to CP Funding Corp. ("CP Funding")
and by CP Funding to AFS Funding without any fraud or misrepresentation on the
part of such Dealer in any case.
3. Compliance with Law. All requirements of applicable federal, state
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and local laws, and regulations thereunder (including, without limitation, usury
laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection
Practices Act, the Federal Trade Commission Act, the ▇▇▇▇-▇▇▇▇▇▇▇▇ Warranty Act,
the Federal Reserve Board's Regulations "B" and "Z" (including amendments to the
Federal Reserve's Official Staff Commentary to Regulation Z, effective October
1, 1998, concerning negative equity loans), the Soldiers' and Sailors' Civil
Relief Act of 1940, each applicable state Motor Vehicle Retail Installment Sales
Act, and state adaptations of the National Consumer Act and of the Uniform
Consumer Credit Code and other consumer credit laws and equal credit opportunity
and disclosure laws) in respect of the Receivables and the Financed Vehicles,
have been complied with in all material respects, and each Receivable and the
sale of the Financed Vehicle evidenced by each Receivable complied at the time
it was originated or made and now complies in all material respects with all
applicable legal requirements.
4. Origination. Each Receivable was originated in the United States.
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5. Binding Obligation. Each Receivable represents the genuine, legal,
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valid and binding payment obligation of the Obligor thereon, enforceable by the
holder thereof in accordance with its terms, except (A) as enforceability may be
limited by bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditors' rights generally
and by equitable limitations on the availability of specific remedies,
regardless of whether such enforceability is considered in a proceeding in
equity or at law and (B) as such Receivable may be modified by the application
after the Cutoff Date of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended; and all parties to each Receivable had full legal capacity to execute
and deliver such Receivable and all other documents related thereto and to grant
the security interest purported to be granted thereby.
6. No Government Obligor. No Obligor is the United States of America or
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any State or any agency, department, subdivision or instrumentality thereof.
7. Obligor Bankruptcy. At the related Cutoff Date no Obligor had been
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identified on the records of AmeriCredit as being the subject of a current
bankruptcy proceeding.
8. Schedules of Receivables. The information set forth in the Schedules
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of Receivables has been produced from the Electronic Ledger and was true and
correct in all material respects as of the close of business on the related
Cutoff Date.
9. Marking Records. By the Closing Date or Subsequent Transfer Date, as
---------------
applicable, AmeriCredit will have caused the portions of the Electronic Ledger
relating to the Receivables to be clearly and unambiguously marked to show that
the Receivables have been sold to AFS Funding by either AmeriCredit or CP
Funding and resold by the AFS Funding to the Trust in accordance with the terms
of the Sale and Servicing Agreement.
10. Computer Tape. The Computer Tape made available by AmeriCredit to
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AFS Funding and to the Trust on the Closing Date or Subsequent Transfer Date, as
applicable, was complete and accurate as of the related Cutoff Date and includes
a description of the same Receivables that are described in the Schedules of
Receivables.
11. Adverse Selection. No selection procedures adverse to the
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Noteholders or the Insurer were utilized in selecting the Receivables from those
receivables owned by either AmeriCredit or CP Funding which met the selection
criteria contained in the Sale and Servicing Agreement.
12. Chattel Paper. The Receivables constitute chattel paper within the
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meaning of the UCC as in effect in the States of Texas and New York.
13. One Original. There is only one original executed copy of each
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Receivable.
14. Receivable Files Complete. There exists a Receivable File pertaining
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to each Receivable and such Receivable File contains (a) a fully executed
original of the Receivable, (b) the original executed credit application, or a
copy thereof and (c) the original Lien Certificate or application therefor. Each
of such documents which is required to be signed by the Obligor has been signed
by the Obligor in the appropriate spaces. All blanks on any form have been
properly filled in and each form has otherwise been correctly prepared. The
complete Receivable File for each Receivable currently is in the possession of
the Custodian.
15. Receivables in Force. No Receivable has been satisfied, subordinated
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or rescinded, and the Financed Vehicle securing each such Receivable has not
been released from
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the lien of the related Receivable in whole or in part. No terms of any
Receivable have been waived, altered or modified in any respect since its
origination, except by instruments or documents identified in the Receivable
File. No Receivable has been modified as a result of application of the
Soldiers' and Sailors' Civil Relief Act of 1940, as amended.
16. Lawful Assignment. No Receivable was originated in, or is subject to
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the laws of, any jurisdiction the laws of which would make unlawful, void or
voidable the sale, transfer and assignment of such Receivable under this
Agreement or pursuant to transfers of the Notes.
17. Good Title. Immediately prior to the conveyance of the Receivables
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to AFS Funding pursuant to this Agreement or Subsequent Purchase Agreement, as
applicable, either AmeriCredit or CP Funding was the sole owner thereof and had
good and indefeasible title thereto, free of any Lien and, upon execution and
delivery of this Agreement by both AmeriCredit and CP Funding, AFS Funding shall
have good and indefeasible title to and will be the sole owner of such
Receivables, free of any Lien. No Dealer has a participation in, or other right
to receive, proceeds of any Receivable. Neither AmeriCredit nor CP Funding has
taken any action to convey any right to any Person that would result in such
Person having a right to payments received under the related Insurance Policies
or the related Dealer Agreements or Dealer Assignments or to payments due under
such Receivables.
18. Security Interest in Financed Vehicle. Each Receivable created or
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shall create a valid, binding and enforceable first priority security interest
in favor of either AmeriCredit or CP Funding in the Financed Vehicle. The Lien
Certificate and original certificate of title for each Financed Vehicle show, or
if a new or replacement Lien Certificate is being applied for with respect to
such Financed Vehicle the Lien Certificate will be received within 180 days of
the Closing Date or Subsequent Transfer Date, as applicable, and will show
AmeriCredit named as the original secured party under each Receivable as the
holder of a first priority security interest in such Financed Vehicle. With
respect to each Receivable for which the Lien Certificate has not yet been
returned from the Registrar of Titles, AmeriCredit has received written evidence
from the related Dealer that such Lien Certificate showing AmeriCredit as first
lienholder has been applied for and AmeriCredit's security interest has been
validly assigned by AmeriCredit either (A) to AFS Funding or (B) to CP Funding
and by CP Funding to AFS Funding pursuant to this Agreement. Immediately after
the sale, transfer and assignment thereof by either AmeriCredit or CP Funding to
AFS Funding, each Receivable will be secured by an enforceable and perfected
first priority security interest in the Financed Vehicle in favor of AFS Funding
as secured party, which security interest is prior to all other Liens upon and
security interests in such Financed Vehicle which now exist or may hereafter
arise or be created (except, as to priority, for any lien for taxes, labor or
materials affecting a Financed Vehicle). As of the related Cutoff Date there
were no Liens or claims for taxes, work, labor or materials affecting a Financed
Vehicle which are or may be Liens prior or equal to the Liens of the related
Receivable.
19. All Filings Made. All filings (including, without limitation, UCC
----------------
filings) required to be made by any Person and actions required to be taken or
performed by any Person in any jurisdiction to give AFS Funding a first priority
perfected lien on, or ownership interest in, the Receivables and the proceeds
thereof and the Other Conveyed Property have been made, taken or performed.
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20. No Impairment. Neither AmeriCredit nor CP Funding have done anything
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to convey any right to any Person that would result in such Person having a
right to payments due under the Receivable or otherwise to impair the rights of
the Trust, the Insurer, the Trustee, the Trust Collateral Agent and the
Noteholders in any Receivable or the proceeds thereof.
21. Receivable Not Assumable. No Receivable is assumable by another
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Person in a manner which would release the Obligor thereof from such Obligor's
obligations to AmeriCredit with respect to such Receivable.
22. No Defenses. No Receivable is subject to any right of rescission,
-----------
setoff, counterclaim or defense and no such right has been asserted or
threatened with respect to any Receivable.
23. No Default. There has been no default, breach, violation or event
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permitting acceleration under the terms of any Receivable (other than payment
delinquencies of not more than 30 days), and no condition exists or event has
occurred and is continuing that with notice, the lapse of time or both would
constitute a default, breach, violation or event permitting acceleration under
the terms of any Receivable, and there has been no waiver of any of the
foregoing. As of the related Cutoff Date no Financed Vehicle had been
repossessed.
24. Insurance. At the time of a purchase of a Receivable by AmeriCredit
---------
from a Dealer, each Financed Vehicle is required to be covered by a
comprehensive and collision insurance policy (i) in an amount at least equal to
the lesser of (a) its maximum insurable value or (b) the principal amount due
from the Obligor under the related Receivable, (ii) naming AmeriCredit as loss
payee and (iii) insuring against loss and damage due to fire, theft,
transportation, collision and other risks generally covered by comprehensive and
collision coverage. Each Receivable requires the Obligor to maintain physical
loss and damage insurance, naming AmeriCredit and its successors and assigns as
additional insured parties, and each Receivable permits the holder thereof to
obtain physical loss and damage insurance at the expense of the Obligor if the
Obligor fails to do so. No Financed Vehicle is insured under a policy of Force-
Placed Insurance on the related Cutoff Date.
25. Past Due. At the related Cutoff Date no Receivable was more than 30
--------
days past due.
26. Remaining Principal Balance. At the related Cutoff Date the
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Principal Balance of each Receivable set forth in the Schedules of Receivables
is true and accurate in all material respects.
27. Certain Characteristics of Initial Receivables. (A) Each Initial
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Receivable had a remaining maturity, as of the Initial Cutoff Date, of not more
than 72 months; (B) each Receivable had an original maturity of not more than 72
months; (C) each Initial Receivable had a remaining Principal Balance as of the
Initial Cutoff Date of at least $250 and not more than $30,000; (D) each Initial
Receivable has an Annual Percentage Rate of at least 9.00% and not more than
32.00%; (E) no Initial Receivable was more than 30 days past due as of the
Initial Cutoff Date and (F) no funds have been advanced by AmeriCredit, any
Dealer, or anyone acting
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on behalf of any of them in order to cause any Initial Receivable to qualify
under clause (E) above.
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