Exhibit 4.1.2
Dated 22 September 2004
-----------------------
GRANITE FINANCE FUNDING LIMITED
as Funding
GRANITE MORTGAGES 04-3 PLC
as Current Issuer
THE BANK OF NEW YORK
as Security Trustee
- and -
CITIBANK, N.A.
as Agent Bank
------------------------------------------------
ISSUER INTERCOMPANY LOAN CONFIRMATION
------------------------------------------------
SIDLEY XXXXXX XXXXX & XXXX
WOOLGATE EXCHANGE
00 XXXXXXXXXX XXXXXX
XXXXXX XX0X 0XX
TELEPHONE 000 0000 0000
FACSIMILE 020 7626 7937
Table of Contents
-----------------
Page
----
1. Interpretation...........................................1
2. Intercompany Loan Terms and Conditions...................2
3. The Current Issuer Intercompany Loan.....................2
4. Interest.................................................2
5. Repayment................................................3
6. Certain Fees, etc........................................4
7. Additional Covenants.....................................5
8. Declaration of Trust.....................................5
9. Addresses................................................5
SCHEDULE 1 CONDITIONS PRECEDENT IN RESPECT OF DRAWDOWN...........8
i
THIS AGREEMENT is dated 22 September 2004 between:
(1) GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
limited company incorporated under the laws of Jersey, but acting out of
its branch office established in England (registered overseas company
number FC022999 and branch number BR005916) at 00 Xxxx Xxxx, Xxxxxxx XX0
0XX as Funding;
(2) GRANITE MORTGAGES 04-3 PLC (registered in England and Wales No. 5168395),
a public limited company incorporated under the laws of England and Wales
whose registered office is at Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx XX0X
0XX as Current Issuer;
(3) THE BANK OF NEW YORK, whose offices are at Xxx Xxxxxx Xxxxxx, 00xx Xxxxx,
Xxxxxx X00 0XX in its capacity as Security Trustee; and
(4) CITIBANK, N.A., acting through its offices at 0 Xxxxxxxxx Xxxxxx, Xxxxxx
XX0X 0XX in its capacity as Agent Bank.
IT IS AGREED as follows:
1. Interpretation
1.1 The provisions of:
(a) the Master Definitions Schedule as amended and restated by (and
appearing in Appendix 1 to) the Master Definitions Schedule Ninth
Amendment Deed made on 22 September 2004 between, among others, the
Seller, Funding and the Mortgages Trustee, and
(b) the Issuer Master Definitions Schedule signed for the purposes of
identification by Sidley Xxxxxx Xxxxx & Xxxx and Xxxxx & Xxxxx LLP
on 22 September 2004,
(as the same have been and may be amended, varied or supplemented from
time to time with the consent of the parties hereto) are expressly and
specifically incorporated into and shall apply to this Agreement. The
Issuer Master Definitions Schedule specified as above shall prevail to
the extent that it conflicts with the Master Definitions Schedule.
1.2 Specific terms: Unless the context otherwise requires, references in the
Intercompany Loan Terms and Conditions to:
"Closing Date" shall mean 22 September, 2004;
"Intercompany Loan" shall mean the Current Issuer Intercompany Loan;
"Intercompany Loan Agreement" shall mean the Current Issuer Intercompany
Loan Agreement;
"Intercompany Loan Confirmation" shall mean this Current Issuer
Intercompany Loan Confirmation;
1
"Issuer" shall mean the Current Issuer;
"Issuer Transaction Accounts" shall mean the Current Issuer Transaction
Accounts; and
"Notes" shall mean the Current Issuer Notes.
2. Intercompany Loan Terms and Conditions
Each of the parties to this Agreement agrees that the Intercompany Loan
Terms and Conditions signed by Funding, the Security Trustee and the
Agent Bank for the purposes of identification on 26 March 2001 (as the
same has been and may be amended, varied, novated or supplemented from
time to time by the parties thereto) and the provisions set out therein
shall form part of this Agreement and shall be binding on the parties to
this Agreement as if they had been expressly set out herein. References
in this Agreement to "this Agreement" shall be construed accordingly.
3. The Current Issuer Intercompany Loan
3.1 Grant of Current Issuer Intercompany Loan: On and subject to the terms of
this Agreement, the Current Issuer hereby grants an Intercompany Loan to
Funding as follows:
(a) the maximum amount available for utilisation under that Intercompany
Loan shall be (GBP)4,000,009,814; and
(b) for all purposes the Outstanding Principal Balance of the
Intercompany Loan and principal amount outstanding and payable
and/or repayable in respect of that Intercompany Loan shall be:
(i) the total amount utilised in respect of that Intercompany Loan
multiplied by 100%, less
(ii) the aggregate principal amounts repaid in respect of the
Intercompany Loan in accordance with the Intercompany Loan
Agreement.
3.2 Conditions Precedent: Save as the Current Issuer may otherwise agree, the
Current Issuer Intercompany Loan will not be available for utilisation
unless the Current Issuer has confirmed to Funding (with a copy of such
confirmation to the Security Trustee) that it or its advisers have
received all the information and documents listed in Schedule 1 in form
and substance satisfactory to the Current Issuer.
4. Interest
4.1 Payment subject to terms of the Current Issuer Cash Management Agreement:
The terms and conditions of this Clause 4 are to be read in conjunction
with the provisions of Part 3 of Schedule 2 to the Current Issuer Cash
Management Agreement, as the same may be amended or varied from time to
time in accordance with the provisions thereof.
4.2 Payment of Interest: Subject to Clause 4 of the Intercompany Loan Terms
and Conditions, on each Payment Date Funding will pay to the Current
Issuer for same
2
day value to the Current Issuer Sterling Account an amount of interest
equal to the amount of interest required by the Current Issuer on such
Payment Date (or such other date on which an amount of interest is
payable by the Current Issuer) to fund (by payment to any Swap Provider
or otherwise) the amount payable by the Current Issuer on such Payment
Date (or such other date on which an amount of interest is payable by the
Current Issuer) on the Current Issuer Notes and certain other amounts
(including an amount equal to the Current Issuer's retained profit) as
specified in and in accordance with the Current Issuer Priority of
Payments as calculated by the Current Issuer Cash Manager on the
Distribution Date that immediately precedes such Payment Date and
communicated by the Current Issuer Cash Manager to the Agent Bank by the
close of business on such Distribution Date. For the avoidance of doubt,
amounts paid by Funding to the Current Issuer pursuant to this Clause 4.2
shall constitute payment of interest on the Current Issuer Intercompany
Loan.
4.3 Interest Periods: The first Interest Period shall commence on (and
include) the Closing Date and end on (but exclude) the Payment Date
falling in December 2004. Each subsequent Interest Period shall commence
on (and include) a Payment Date and end on (but exclude) the following
Payment Date.
5. Repayment
5.1 Payment subject to terms of the Current Issuer Cash Management Agreement:
The terms and conditions of this Clause 5 are to be read in conjunction
with the provisions of Part 4 of Schedule 2 to the Current Issuer Cash
Management Agreement, as the same may be amended or varied from time to
time in accordance with the provisions thereof.
5.2 Repayment: Subject to Clause 4 of the Intercompany Loan Terms and
Conditions, on each Payment Date Funding will repay to the Current Issuer
for same day value to the Current Issuer Sterling Account an amount of
principal equal to the amount of principal required by the Current Issuer
on such Payment Date (or such other date on which an amount of principal
is payable by the Current Issuer) to fund (by payment to any Swap
Provider or otherwise) the amount payable by the Current Issuer on such
Payment Date (or such other date on which an amount of principal is
payable by the Current Issuer on the Current Issuer Notes) on the Current
Issuer Notes, as determined by the Current Issuer Cash Manager under the
terms of the Current Issuer Cash Management Agreement on the Distribution
Date that immediately precedes such Payment Date and communicated by the
Current Issuer Cash Manager to the Agent Bank by the close of business on
such Distribution Date.
5.3 Acknowledgement of New Intercompany Loans: The Current Issuer hereby
acknowledges and agrees that Funding has entered into Previous Issuer
Intercompany Loan Agreements with Previous Issuers and that from time to
time Funding may enter into other New Intercompany Loans with New Issuers
and that the obligation of Funding to repay this Current Issuer
Intercompany Loan will rank pari passu with the obligations of Funding to
repay the Previous Issuer Intercompany Loans and any New Intercompany
Loans, other than in respect of the priority made in the allocation of
principal receipts to an Issuer which has issued Money Market Notes.
3
6. Certain Fees, etc.
6.1 Fee for provision of Current Issuer Intercompany Loan: In addition to the
interest and principal payments to be made by Funding under Clauses 4 and
5, respectively, on each Payment Date (or, in respect of the payment to
be made as set forth in (a) below, on the Drawdown Date) or on any other
date on which the Current Issuer notifies Funding, Funding shall pay to
the Current Issuer for same day value to the relevant Current Issuer
Transaction Account a fee for the provision of the Current Issuer
Intercompany Loan (except that in the case of payments due under
paragraphs (c), (e), (f) and (j) below, such payments shall be paid when
due). Such fee shall be an amount or amounts in the aggregate equal to
the following:
(a) the amount payable on the Drawdown Date as previously communicated
to Funding by the Current Issuer;
(b) the fees, costs, charges, liabilities and expenses and any other
amounts due and payable to the Note Trustee pursuant to the Current
Issuer Trust Deed or any other Current Issuer Transaction Document,
together with interest thereon as provided therein;
(c) the reasonable fees and expenses of any legal advisers, accountants
and auditors appointed by the Current Issuer and properly incurred
in their performance of their functions under the Current Issuer
Transaction Documents which have fallen due;
(d) the fees, costs and expenses due and payable to the Paying Agents
and the Agent Bank pursuant to the Current Issuer Paying Agent and
Agent Bank Agreement and the fees, costs and expenses due and
payable to the Transfer Agent and the Registrar;
(e) any amounts due and payable by the Current Issuer to the Inland
Revenue in respect of the Current Issuer's liability to United
Kingdom corporation tax (insofar as payment is not satisfied by the
surrender of group relief or out of the profits, income or gains of
the Current Issuer and subject to the terms of the Current Issuer
Deed of Charge) or any other Taxes payable by the Current Issuer;
(f) the fees, costs, charges, liabilities and expenses due and payable
to the Current Issuer Account Bank pursuant to the Current Issuer
Bank Account Agreement (if any);
(g) the fees, costs, charges, liabilities and expenses due and payable
to the Current Issuer Cash Manager pursuant to the Current Issuer
Cash Management Agreement;
(h) any termination payment due and payable by the Current Issuer to a
Current Issuer Swap Provider pursuant to a Current Issuer Swap
Agreement;
(i) the fees, costs, charges, liabilities and expenses due and payable
to the Current Issuer Corporate Services Provider pursuant to the
Current Issuer Corporate Services Agreement; and
4
(j) any other amounts due or overdue (including amounts due or overdue
in respect of stamp duty and issuer, registration and documentary
taxes or other taxes of a similar nature) by the Current Issuer to
third parties including the Rating Agencies and the amounts paid by
the Current Issuer under the Current Issuer Subscription Agreement
and the Current Issuer Underwriting Agreement (excluding, for these
purposes, the Noteholders) other than amounts specified in
paragraphs (a) to (i) above,
together with, (i) in respect of taxable supplies made to the Current
Issuer, any amount in respect of any VAT or similar tax payable in
respect thereof against production of a valid tax invoice; and (ii) in
respect of taxable supplies made to a person other than the Current
Issuer, any amount in respect of any Irrecoverable VAT or similar tax
payable in respect thereof (against production of a copy of the relevant
tax invoice), and to be applied subject to and in accordance with the
provisions of the Current Issuer Pre-Enforcement Revenue Priority of
Payments in the Current Issuer Cash Management Agreement or such other
Current Issuer Priority of Payments as may apply on that date.
6.2 Set-off: Funding and each of the other parties to this Agreement agree
that the Current Issuer shall be entitled to set-off those amounts due
and payable by Funding pursuant to this Clause 6 on the Closing Date
against the amount to be advanced by the Current Issuer to Funding under
the Current Issuer Intercompany Loan on the Closing Date.
7. Additional Covenants
Funding undertakes to establish the Current Issuer Liquidity Reserve
Fund, and an appropriate ledger therefor, on behalf of the Current Issuer
should the long-term, unsecured, unsubordinated and unguaranteed debt
obligations of the Seller cease to be rated at least A3 by Moody's or A-
by Fitch (unless Moody's or Fitch, as applicable, confirms the then
current ratings of the Current Issuer Notes will not be adversely
affected by such ratings downgrade). Any such Current Issuer Liquidity
Reserve Fund and such Current Issuer Liquidity Reserve Ledger shall be
established and maintained in accordance with the provisions of the Cash
Management Agreement.
8. Declaration of Trust
The Current Issuer declares the Security Trustee, and the Security
Trustee hereby declares itself, trustee of all the covenants,
undertakings, rights, powers, authorities and discretions in, under or in
connection with this Agreement for the Current Issuer Secured Creditors
in respect of the Current Issuer Secured Obligations owed to each of them
respectively upon and subject to the terms and conditions of the Current
Issuer Deed of Charge.
9. Addresses
The addresses referred to in Clause 18.4 (Notices) of the Intercompany
Loan Terms and Conditions are as follows:
5
The Security Trustee:
For the attention of: Corporate Trust (Global Structured Finance)
Address: The Bank of New York
00xx Xxxxx, Xxx Xxxxxx Xxxxxx
Xxxxxx X00 0XX
Facsimile: x00 000 000 0000 / x00 000 000 0000
The Current Issuer:
For the attention of: The Company Secretary
Address: Granite Mortgages 04-3 plc
Xxxxx Xxxxx
000 Xxxx Xxxxxx
Xxxxxx XX0X 0XX
Telephone: x00 000 000 0000
Facsimile: x00 000 000 0000
Funding:
For the attention of: The Company Secretary
Address: Granite Finance Funding Limited
00 Xxxx Xxxx
Xxxxxxx XX0 0XX
Telephone: x00 00 0000 0000
Facsimile: x00 00 0000 0000
Rating Agencies:
Moody's: Xxxxx'x Investors Services Limited
0 Xxxxxxx Xxxxx, 0xx Xxxxx
Xxxxxxx Xxxx
Xxxxxx XX0X 0XX
For the attention of: Head of Monitoring Group, Structured Finance
Telephone: x00 000 000 0000
Facsimile: x00 000 000 0000
S&P: Standard and Poor's
00 Xxxxxx Xxxxxx
Xxxxxx Xxxxx
Xxxxxx X00 0XX
6
For the attention of: Xxxxx Xxxxxxxx
Telephone: x00 00 0000 0000
Facsimile: x00 00 0000 0000
Fitch: Fitch Ratings Ltd.
Xxxxx Xxxxx
0 Xxxxx Xxxxxx
Xxxxxx XX0X 0XX
For the attention of: European Structured Finance Surveillance
Telephone: x00 000 000 0000
Facsimile: x00 000 000 0000
IN WITNESS WHEREOF the parties have caused this Agreement to be duly executed
on the day and year appearing on page 1.
7
SCHEDULE 1
CONDITIONS PRECEDENT IN RESPECT OF DRAWDOWN
1. Authorisations
(a) A copy of the memorandum and articles of association and certificate
of incorporation of Funding.
(b) A copy of a resolution of the board of directors of Funding
authorising the entry into, and the execution and performance of,
each of the Current Issuer Transaction Documents to which Funding is
a party and authorising specified persons to execute those on its
behalf.
(c) A certificate of a director of Funding certifying:
(i) that each document delivered under this paragraph 1 of Schedule
1 is correct, complete and in full force and effect as at a
date no later than the date of the Current Issuer Intercompany
Loan Confirmation and, if such certificate is dated other than
on the Drawdown date, undertaking to notify the Current Issuer
(with a copy of such certification to the Security Trustee) if
that position should change prior to the Drawdown Date; and
(ii) as to the identity and specimen signatures of the directors and
signatories of Funding.
2. Security
The Current Issuer Deed of Accession duly executed by the parties
thereto.
3. Legal opinion
Legal opinions of:
(a) Sidley Xxxxxx Xxxxx & Xxxx, English legal advisers to the Seller,
the Current Issuer and Funding, addressed to the Security Trustee;
(b) Sidley Xxxxxx Xxxxx & Xxxx LLP, U.S. legal advisers to the Seller,
the Current Issuer and Funding, addressed to the Security Trustee;
and
(c) Tods Xxxxxx LLP, Scottish legal advisers to the Seller, the Current
Issuer and Funding, addressed to the Security Trustee.
4. Transaction Documents
Duly executed copies of:
(a) the Current Issuer Deed of Charge;
(b) the Current Issuer Trust Deed;
8
(c) the Cash Management Agreement;
(d) the Global Note Certificates;
(e) the Current Issuer Corporate Services Agreement;
(f) the Current Issuer Currency Swap Agreements;
(g) the Current Issuer Basis Rate Swap Agreement;
(h) the Current Issuer Interest Rate Swap Agreement;
(i) the Bank Account Agreement;
(j) the Collection Bank Agreement;
(k) the Master Definitions Schedule and the Current Issuer Master
Definitions Schedule;
(l) the Current Issuer Paying Agent and Agent Bank Agreement;
(m) the Current Issuer Start-up Loan Agreement;
(n) the Mortgage Sale Agreement;
(o) the Mortgages Trust Deed;
(p) the Administration Agreement;
(q) the Mortgages Trustee Guaranteed Investment Contract;
(r) the Funding Guaranteed Investment Contract;
(s) the Funding (Current Issuer) Guaranteed Investment Contract;
(t) the Current Issuer Post-Enforcement Call Option Agreement;
(u) the Current Issuer Subscription Agreement;
(v) the Current Issuer Underwriting Agreement;
(w) the Seller Power of Attorney;
(x) the Funding Deed of Charge;
(y) the Current Issuer Cash Management Agreement;
(z) the Funding (Current Issuer) Bank Account Agreement;
(aa) the Current Issuer Bank Account Agreement;
(bb) the Second Priority Funding Deed of Charge;
9
(cc) the Stand-by Bank Account Agreement;
(dd) the Stand-by Mortgages Trustee Guaranteed Investment Contract; and
(ee) the Stand-by Funding Guaranteed Investment Contract.
5. Bond Documentation
(a) Confirmation that the Current Issuer Notes have been issued and the
subscription proceeds received by the Current Issuer; and
(b) Copy of the Prospectus and the Offering Circular.
6. Miscellaneous
A solvency certificate from Funding signed by two directors of Funding in
or substantially in the form set out in Schedule 2 (Solvency Certificate)
to the Intercompany Loan Terms and Conditions.
10
EXECUTION PAGE
Funding
Executed by
GRANITE FINANCE FUNDING LIMITED
as follows: By
Signed for and on its behalf by one ------------------------------------
of its duly authorised attorneys Duly Authorised Attorney/Signatory
/signatories
Name
---------------------------------
The Current Issuer
Executed by
GRANITE MORTGAGES 04-3 PLC
as follows: By
Signed for and on its behalf by one ------------------------------------
of its duly authorised attorneys Duly Authorised Attorney/Signatory
/signatories
Name
---------------------------------
The Security Trustee
Executed by
BANK OF NEW YORK
as follows: By
Signed for and on its behalf by one ------------------------------------
of its duly authorised attorneys Duly Authorised Attorney/Signatory
/signatories
Name
---------------------------------
The Agent Bank
Executed by
CITIBANK, N.A.
as follows: By
Signed for and on its behalf by one ------------------------------------
of its duly authorised attorneys Duly Authorised Attorney/Signatory
/signatories
Name
---------------------------------
11
