EXHIBIT 4.2
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DEUTSCHE FLOORPLAN RECEIVABLES, L.P.
Seller
DEUTSCHE FINANCIAL SERVICES CORPORATION
Servicer
and
THE CHASE MANHATTAN BANK
Trustee
SERIES 2000-1 SUPPLEMENT
Dated as of April 1, 2000
to
AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT
Dated as of April 1, 2000
DISTRIBUTION FINANCIAL SERVICES FLOORPLAN MASTER TRUST
SERIES 2000-1
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TABLE OF CONTENTS
Page
ARTICLE I
Creation of the Series 2000-1 Certificates
SECTION 1.1 Designation....................................................1
ARTICLE II
Definitions
SECTION 2.1 Definitions....................................................1
ARTICLE III
Servicing Fee
SECTION 3.1 Servicing Compensation........................................14
ARTICLE IV
Rights of Series 2000-1 Certificateholders and Allocation and
Application of Collections
SECTION 4.1 Allocations; Payments to Seller...............................16
SECTION 4.2 Monthly Interest; Determination of Certificate Rate...........16
SECTION 4.3 Determination of Monthly Principal............................17
SECTION 4.4 Establishment of Reserve Fund and Funding Accounts............18
SECTION 4.5 Deficiency Amount.............................................21
SECTION 4.6 Application of Investor Non-Principal Collections,
Investment Proceeds, Servicer Advances and Available
Investor Principal Collections................................21
SECTION 4.7 Distributions to Series 2000-1 Certificateholders.............24
SECTION 4.8 Application of Reserve Fund...................................26
SECTION 4.9 Investor Charge-Offs..........................................26
SECTION 4.10 Excess Servicing..............................................27
SECTION 4.11 Excess Principal Collections..................................27
SECTION 4.12 Excess Funding Account........................................27
SECTION 4.13 Yield Supplement Account......................................29
ARTICLE V
Distribution and Reports to Series 2000-1 Certificateholders
SECTION 5.1 Distributions.................................................29
SECTION 5.2 Reports and Statements to Series 2000-1 Certificateholders....30
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ARTICLE VI
Early Amortization Events
SECTION 6.1 Additional Early Amortization Events..........................31
ARTICLE VII
Optional Repurchase
SECTION 7.1 Optional Repurchase...........................................32
ARTICLE VIII
Final Distributions
SECTION 8.1 Sale of Certificateholders' Interest Pursuant to Section 2.3
of the Agreement; Distributions Pursuant to Section 7.1 of
this Series Supplement or Section 2.3 or 12.2(c) of the
Agreement.....................................................33
SECTION 8.2 Distribution of Proceeds of Sale, Disposition or Liquidation
of the Receivables Pursuant to Section 9.2 of the Agreement...34
ARTICLE IX
Miscellaneous Provisions
SECTION 9.1 Securities Law Filings........................................35
SECTION 9.2 Ratification of Agreement.....................................35
SECTION 9.3 Counterparts..................................................35
SECTION 9.4 Governing Law.................................................35
SECTION 9.5 Limitation of Class C Certificates............................35
SECTION 9.6 The Trustee; Paying Agent.....................................37
SECTION 9.7 Instructions in Writing.......................................37
SECTION 9.8 Initial Funding of Reserve Fund...............................37
SECTION 9.9 Severability; Certificate Rate Limitation.....................38
SECTION 9.10 Headings......................................................38
SECTION 9.11 Notices.......................................................38
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EXHIBITS
Exhibit A Form of Certificate
Exhibit B Distribution Date Statement
Exhibit C Form of Representation Letter
SCHEDULES
Schedule 1 Accounts
Schedule 2 Initial Principal Amounts of Certificates
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SERIES 2000-1 SUPPLEMENT dated as of April 1, 2000 (this "Series
Supplement"), among DEUTSCHE FLOORPLAN RECEIVABLES, L.P., a Delaware limited
partnership, as Seller, DEUTSCHE FINANCIAL SERVICES CORPORATION, a Nevada
corporation, as Servicer, and THE CHASE MANHATTAN BANK, a New York banking
corporation, as Trustee.
Pursuant to Section 6.3 of the Amended and Restated Pooling and
Servicing Agreement, dated as of April 1, 2000 (the "Agreement"), among the
Seller, the Servicer and the Trustee, the Seller may from time to time direct
the Trustee to issue, on behalf of the Trust, one or more new Series of Investor
Certificates.
Pursuant to this Series Supplement, the Seller and the Trustee shall
create a new Series of Investor Certificates and specify the Principal Terms
thereof.
ARTICLE I
Creation of the Series 2000-1 Certificates
SECTION 1.1 Designation. (a) There is hereby created a Series of
Investor Certificates to be issued pursuant to the Agreement and this Series
Supplement to be known as the "Floating Rate Asset Backed Certificates, Series
2000-1" or the "Series 2000-1 Certificates", which shall consist of three
Classes to be known, respectively, as the "Floating Rate Asset Backed
Certificates, Series 2000-1, Class A," "Floating Rate Asset Backed Certificates,
Series 2000-1, Class B" and "Floating Rate Asset Backed Certificates, Series
2000-1, Class C."
(b) In the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Agreement, the terms and provisions of this Series Supplement shall govern.
ARTICLE II
Definitions
SECTION 2.1 Definitions. (a) Whenever used in this Series Supplement
the following words and phrases shall have the following meanings:
"Accumulation Period" shall mean, unless an Early Amortization Event
shall have occurred prior thereto (other than an Early Amortization Event which
has resulted in an Early Amortization Period which has ended as described in
clause (c) of the definition of Early Amortization Period in the Agreement), the
period commencing on the Accumulation Period Commencement Date and ending upon
the earlier of (a) the commencement of an Early Amortization Period and (b) the
Expected Final Payment Date.
"Accumulation Period Commencement Date" shall mean the first day of the
calendar month which is the fourth calendar month prior to the calendar month in
which the Expected
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Final Payment Date occurs; provided, however, that upon written notice to the
Trustee, the Servicer may elect to postpone the Accumulation Period Commencement
Date so that the number of months included in the Accumulation Period shall
equal or exceed the Accumulation Period Length; provided further, however, that
such election shall only be permitted if the Accumulation Period Length is less
than four months; provided further, however, that the Accumulation Period
Commencement Date shall not be postponed beyond the first day of the calendar
month which is the second calendar month prior to the calendar month in which
the Expected Final Payment Date occurs.
"Accumulation Period Length" shall mean, as determined by the Servicer
on each Determination Date, beginning with the Determination Date occurring in
the calendar month which is the fifth calendar month prior to the calendar month
in which the Expected Final Payment Date occurs, the number of calendar months
that the Servicer expects to be required so that sufficient funds are on deposit
in the Principal Funding Account no later than the Expected Final Payment Date
to pay the outstanding principal balances of the Certificates, based on (a) the
expected monthly collections of Principal Receivables expected to be
distributable to the Series 2000-1 Certificateholders assuming a principal
payment rate no greater than the lowest Monthly Payment Rate on the Receivables
for the preceding three months, so that, for example, if the lowest Monthly
Payment Rate for that preceding three month period is 50% or more, the number of
calendar months required would be two; if the lowest Monthly Payment Rate for
that preceding three month period is between 33.33% and 50%, the number of
calendar months required would be three; and if the lowest Monthly Payment Rate
for that preceding three month period is between 25% and 33.33%, the number of
calendar months required would be four; and (b) the amount of principal expected
to be distributable to Investor Certificateholders of other Series which are
expected to be in their accumulation or amortization periods during the
Accumulation Period.
"Additional Early Amortization Event" shall have the meaning specified
in Section 6.1.
"Additional Interest" shall mean the sum of the Class A Additional
Interest, the Class B Additional Interest and the Class C Additional Interest.
"Adjustment Date" shall mean, with respect to any Interest Period, the
second London Business Day preceding such Interest Period; provided that with
respect to the first Interest Period, the Adjustment Date shall be April 25,
2000.
"Allocable Miscellaneous Payments" shall mean, with respect to any
Distribution Date, the product of (a) a fraction, the numerator of which is the
Series 2000-1 Allocation Percentage for the related Collection Period and the
denominator of which is the sum of the series allocation percentages for all
Series not in their revolving periods and (b) Miscellaneous Payments with
respect to the related Collection Period.
"Available Investor Principal Collections" shall mean, with respect to
any Distribution Date, the sum of (a) an amount equal to Investor Principal
Collections for such Distribution Date,
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(b) Allocable Miscellaneous Payments with respect to such Distribution Date, (c)
any funds remaining in the Yield Supplement Account at the beginning of the
Accumulation Period or upon the occurrence of an Early Amortization Event and
(d) on the Termination Date, any funds in the Reserve Fund after giving effect
to Section 4.8.
"Carry-over Amount" shall mean the sum of the Class A Carry-over
Amount, the Class B Carry-over Amount and the Class C Carry-over Amount.
"Certificate Rate" means any of the Class A Certificate Rate, the Class
B Certificate Rate or the Class C Certificate Rate.
"Certificateholders" shall mean, collectively, the Class A
Certificateholders, the Class B Certificateholders and the Class C
Certificateholders.
"Certificateholders' Monthly Servicing Fee" shall have the meaning
specified in Section 3.1.
"Certificates" shall mean, collectively, the Class A Certificates, the
Class B Certificates and the Class C Certificates.
"Class A Additional Interest" shall have the meaning specified in
Section 4.2(a).
"Class A Carry-over Amount" shall mean, with respect to a Distribution
Date an amount equal to the excess, if any, of (a) the amount equal to the Class
A Monthly Interest for such Distribution Date calculated as if the Class A
Certificate Rate for such Distribution Date were based on LIBOR rather than the
Net Receivables Rate, over (b) the actual Class A Monthly Interest for such
Distribution Date.
"Class A Carry-over Amount Additional Interest" for a Distribution Date
shall mean an amount equal to the product of:
(a) the Class A Certificate Rate for the Interest Period then ended;
(b) a fraction, the numerator of which is the actual number of days
in that Interest Period and the denominator of which is 360; and
(c) any unpaid Class A Carry-over Amount, if any, for the previous
Distribution Date.
"Class A Certificate Rate" shall mean, for an Interest Period and the
Distribution Date immediately following such Interest Period, a rate per annum
equal to the lesser of (i) LIBOR plus seventeen basis points (0.17%) per annum
and (ii) the related Net Receivables Rate.
"Class A Certificateholders" shall mean the Holders of Class A
Certificates.
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"Class A Certificates" shall mean any one of the "Floating Rate Asset
Backed Certificates, Series 2000-1, Class A" executed by the Seller and
authenticated by the Trustee, substantially in the form of Exhibit A.
"Class A Initial Invested Amount" shall mean, for any date, the initial
principal amount of the Class A Certificates, which is set forth in Schedule 2,
plus (x) the product of (i) the Class A Percentage multiplied by (ii) the amount
of any withdrawals from the Excess Funding Account in connection with an
increase in Pool Balance since the Closing Date, minus (y) the product of (i)
the Class A Percentage multiplied by (ii) the amount of any additions to the
Excess Funding Account in connection with a reduction in the Pool Balance since
the Closing Date.
"Class A Interest Shortfall" shall have the meaning specified in
Section 4.2(a).
"Class A Invested Amount" shall mean, for any date, an amount equal to
the result of (i) the Class A Initial Invested Amount, minus (ii) the aggregate
amount of principal payments made to Class A Certificateholders prior to such
date, minus (iii) the aggregate amount of all unreimbursed Class A Investor
Charge-Offs; provided that the Class A Invested Amount shall not be less than
zero.
"Class A Investor Charge-Off" shall have the meaning specified in
Section 4.9.
"Class A Monthly Interest" on any Distribution Date shall be an amount
equal to the product of (i) the Class A Certificate Rate, (ii) a fraction the
numerator of which is the actual number of days in the related Interest Period
and the denominator of which is 360, and (iii) (A) the outstanding principal
balance of the Class A Certificates as of the close of business on the preceding
Distribution Date (after giving effect to all repayments of principal made to
Class A Certificateholders on such preceding Distribution Date, if any) or (B)
in the case of the first Distribution Date with respect to Series 2000-1, the
initial principal amount of the Class A Certificates as set forth in Schedule 2.
"Class A Percentage" shall mean the percentage equivalent of a
fraction, the numerator of which is the outstanding principal balance of the
Class A Certificates and the denominator of which is the outstanding principal
balance of all Certificates.
"Class A Pool Factor" shall mean, with respect to any Determination
Date, a number carried out to eleven decimals representing the ratio of the
outstanding principal balance of the Class A Certificates as of such
Determination Date (determined after taking into account any reduction in the
outstanding principal balance of the Class A Certificates which shall occur on
the following Distribution Date) to the initial principal balance of the Class A
Certificates.
"Class B Additional Interest" shall have the meaning specified in
Section 4.2(a).
"Class B Carry-over Amount" shall mean, with respect to a Distribution
Date, an amount equal to the excess, if any, of (a) the amount equal to the
Class B Monthly Interest for such
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Distribution Date calculated as if the Class B Certificate Rate for such
Distribution Date were based on LIBOR rather than the Net Receivables Rate, over
(b) the actual Class B Monthly Interest for such Distribution Date.
"Class B Carry-over Amount Additional Interest" for a Distribution Date
shall mean an amount equal to the product of:
(a) the Class B Certificate Rate for the Interest Period then ended;
(b) a fraction, the numerator of which is the actual number of days
in that Interest Period and the denominator of which is 360; and
(c) any unpaid Class B Carry-over Amount, if any, for the previous
Distribution Date.
"Class B Certificate Rate" shall mean, for an Interest Period and the
Distribution Date immediately following such Interest Period, a rate per annum
equal to the lesser of (i) LIBOR plus forty-four basis points (0.44%) per annum
and (ii) the related Net Receivables Rate.
"Class B Certificateholders" shall mean the Holders of Class B
Certificates.
"Class B Certificates" shall mean any one of the "Floating Rate Asset
Backed Certificates, Series 2000-1, Class B" executed by the Seller and
authenticated by the Trustee, substantially in the form of Exhibit A.
"Class B Initial Invested Amount" shall mean, for any date, the initial
principal amount of the Class B Certificates, which is set forth in Schedule 2,
plus (x) the product of (i) the Class B Percentage multiplied by (ii) the amount
of any withdrawals from the Excess Funding Account in connection with an
increase in Pool Balance since the Closing Date, minus (y) the product of (i)
the Class B Percentage multiplied by (ii) the amount of any additions to the
Excess Funding Account in connection with a reduction in the Pool Balance since
the Closing Date.
"Class B Interest Shortfall" shall have the meaning specified in
Section 4.2(a).
"Class B Invested Amount" shall mean, for any date, an amount equal to
the result of (i) the Class B Initial Invested Amount, minus (ii) the aggregate
amount of principal payments made to Class B Certificateholders prior to such
date, minus (iii) the aggregate amount of all unreimbursed Class B Investor
Charge-Offs; provided that the Class B Invested Amount shall not be less than
zero.
"Class B Investor Charge-Off" shall have the meaning specified in
Section 4.9.
"Class B Monthly Interest" on any Distribution Date shall be an amount
equal to the product of (i) the Class B Certificate Rate, (ii) a fraction the
numerator of which is the actual
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number of days in the related Interest Period and the denominator of which is
360, and (iii) (A) the outstanding principal balance of the Class B Certificates
as of the close of business on the preceding Distribution Date (after giving
effect to all repayments of principal made to Class B Certificateholders on such
preceding Distribution Date, if any) or (B) in the case of the first
Distribution Date with respect to Series 2000-1, the initial principal amount of
the Class B Certificates as set forth in Schedule 2.
"Class B Percentage" shall mean the percentage equivalent of a
fraction, the numerator of which is the outstanding principal balance of the
Class B Certificates and the denominator of which is the outstanding principal
balance of all Certificates.
"Class B Pool Factor" shall mean, with respect to any Determination
Date, a number carried out to eleven decimals representing the ratio of the
outstanding principal balance of the Class B Certificates as of such
Determination Date (determined after taking into account any reduction in the
outstanding principal balance of the Class B Certificates which shall occur on
the following Distribution Date) to the initial principal balance of the Class B
Certificates.
"Class C Additional Interest" shall have the meaning specified in
Section 4.2(a).
"Class C Carry-over Amount" shall mean, with respect to a Distribution
Date, an amount equal to the excess, if any, of (a) the amount equal to the
Class C Monthly Interest for such Distribution Date calculated as if the Class C
Certificate Rate for such Distribution Date were based on LIBOR rather than the
Net Receivables Rate, over (b) the actual Class C Monthly Interest for such
Distribution Date.
"Class C Carry-over Amount Additional Interest" for a Distribution Date
shall mean an amount equal to the product of:
(a) the Class C Certificate Rate for the Interest Period then ended;
(b) a fraction, the numerator of which is the actual number of days
in that Interest Period and the denominator of which is 360; and
(c) any unpaid Class C Carry-over Amount, if any, for the previous
Distribution Date.
"Class C Certificate Rate" shall mean, for an Interest Period and the
Distribution Date immediately following such Interest Period, a rate per annum
equal to the lesser of (i) LIBOR plus one hundred basis points (1.0%) per annum
and (ii) the related Net Receivables Rate.
"Class C Certificateholders" shall mean the Holders of Class C
Certificates.
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"Class C Certificates" shall mean any one of the "Floating Rate Asset
Backed Certificates, Series 2000-1, Class C" executed by the Seller and
authenticated by the Trustee, substantially in the form of Exhibit A.
"Class C Initial Invested Amount" shall mean, for any date, the initial
principal amount of the Class C Certificates, which is set forth in Schedule 2,
plus (x) the product of (i) the Class C Percentage multiplied by (ii) the amount
of any withdrawals from the Excess Funding Account in connection with an
increase in Pool Balance since the Closing Date, minus (y) the product of (i)
the Class C Percentage multiplied by (ii) the amount of any additions to the
Excess Funding Account in connection with a reduction in the Pool Balance since
the Closing Date.
"Class C Interest Shortfall" shall have the meaning specified in
Section 4.2(a).
"Class C Invested Amount" shall mean, for any date, an amount equal to
the result of (i) the Class C Initial Invested Amount, minus (ii) the aggregate
amount of principal payments made to Class C Certificateholders prior to such
date, minus (iii) the aggregate amount of all unreimbursed Class C Investor
Charge-Offs; provided that the Class C Invested Amount shall not be less than
zero.
"Class C Investor Charge-Off" shall have the meaning specified in
Section 4.9.
"Class C Monthly Interest" on any Distribution Date shall be an amount
equal to the product of (i) the Class C Certificate Rate, (ii) a fraction the
numerator of which is the actual number of days in the related Interest Period
and the denominator of which is 360, and (iii) (A) the outstanding principal
balance of the Class C Certificates as of the close of business on the preceding
Distribution Date (after giving effect to all repayments of principal made to
Class C Certificateholders on such preceding Distribution Date, if any) or (B)
in the case of the first Distribution Date with respect to Series 2000-1, the
initial principal amount of the Class C Certificates as set forth in Schedule 2.
"Class C Percentage" shall mean the percentage equivalent of a
fraction, the numerator of which is the outstanding principal balance of the
Class C Certificates and the denominator of which is the outstanding principal
balance of all Certificates.
"Class C Pool Factor" shall mean, with respect to any Determination
Date, a number carried out to eleven decimals representing the ratio of the
outstanding principal balance of the Class C Certificates as of such
Determination Date (determined after taking into account any reduction in the
outstanding principal balance of the Class C Certificates which shall occur on
the following Distribution Date) to the initial principal balance of the Class C
Certificates.
"Closing Date" shall mean April 27, 2000.
"Code" shall mean the Internal Revenue Code of 1986, as amended.
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"Controlled Accumulation Amount" shall mean the quotient obtained by
dividing the Invested Amount as of the Determination Date on which the
Accumulation Period Length is determined (after giving effect to any changes
therein on such date) by the number of months comprising the Accumulation Period
Length.
"Controlled Deposit Amount" shall mean, for any Distribution Date with
respect to the Accumulation Period, the excess, if any, of (i) the product of
the Controlled Accumulation Amount and the number of Distribution Dates from and
including the first Distribution Date during the Accumulation Period through and
including such Distribution Date over (ii) the sum of amounts on deposit in the
Excess Funding Account and the Principal Funding Account, in each case before
giving effect to any withdrawals from or deposits to such accounts on such
Distribution Date.
"Deficiency Amount" shall have the meaning specified in Section 4.5.
"Distribution Date Statement" shall have the meaning specified in
Section 5.2(a).
"Early Amortization Event" shall mean any Early Amortization Event
specified in Section 9.1 of the Agreement, together with any Additional Early
Amortization Event specified in Section 6.1 of this Series Supplement.
"Early Amortization Period" shall mean an Early Amortization Period (as
defined in the Agreement) with respect to Series 2000-1.
"Excess Funding Account" shall have the meaning specified in Section
4.4(d).
"Excess Principal Collections" shall mean the amounts equal to the
balances referred to as such in Sections 4.6(b)(ii) and 4.6(c)(ii).
"Excess Servicing", shall mean, with respect to any Distribution Date,
the amount, if any, specified pursuant to Section 4.6(a)(xi) with respect to
such Distribution Date.
"Expected Final Payment Date" shall mean the April 2003 Distribution
Date.
"Floating Allocation Percentage" shall mean, with respect to any
Collection Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Invested Amount as of
the last day of the immediately preceding Collection Period and the denominator
of which is the Unconcentrated Pool Balance as of such last day; provided,
however, for the Collection Period in which the Closing Date occurs, the
Floating Allocation Percentage shall mean the percentage equivalent of a
fraction, the numerator of which is the sum of the initial principal balances of
the Series 2000-1 Certificates and the denominator of which is the
Unconcentrated Pool Balance on the last day of the Collection Period immediately
preceding the Closing Date.
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"Initial Invested Amount" shall equal the sum of the Class A Initial
Invested Amount, the Class B Initial Invested Amount and the Class C Initial
Invested Amount.
"Interest Funding Account" shall have the meaning specified in Section
4.4(b).
"Interest Period" shall mean, with respect to any Distribution Date,
the period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date) to but excluding such Distribution Date.
"Invested Amount" shall mean, for any date, the sum of the Class A
Invested Amount, the Class B Invested Amount and the Class C Invested Amount.
"Investment Proceeds" shall mean, with respect to any Distribution
Date, all interest and other investment earnings (net of losses and investment
expenses) on the related Determination Date on funds on deposit in the Series
2000-1 Accounts, together with an amount equal to the Series 2000-1 Allocation
Percentage of the interest and other investment earnings (net of losses and
investment expenses) on funds held in the Collection Account credited as of the
related Determination Date to the Collection Account pursuant to Section 4.2 of
the Agreement.
"Investor Default Amount" shall mean, with respect to any Distribution
Date, an amount equal to the product of (a) the Defaulted Amount for the related
Collection Period, after giving effect to any allocation of any portion of that
Defaulted Amount to the Dealer Overconcentration Series, and (b) the Floating
Allocation Percentage for the related Collection Period.
"Investor Non-Principal Collections" shall mean, with respect to any
Distribution Date, an amount equal to the product of (i) the Floating Allocation
Percentage for the related Collection Period and (ii) Non-Principal Collections
deposited in the Collection Account for the related Collection Period after
giving effect to any allocations to the Dealer Overconcentration Series for such
Collection Period.
"Investor Principal Collections" shall mean, with respect to any
Distribution Date, the sum of (a) the product of (i) the Floating Allocation
Percentage, with respect to the Revolving Period, or the Principal Allocation
Percentage, with respect to the Accumulation Period or an Early Amortization
Period, for the related Collection Period (or the portion of the Collection
Period which occurs as part of the first Collection Period during an Early
Amortization Period), and (ii) Principal Collections for the related Collection
Period after giving effect to any allocations to the Dealer Overconcentration
Series for such Collection Period and (b) the amount, if any, of Non-Principal
Collections to be allocated with respect to the Investor Default Amount or
unreimbursed Class A, Class B or Class C Investor Charge-Offs pursuant to
Section 4.6(a)(vi) or 4.6(a)(vii); provided that in the case of clause (a), if
for any Distribution Date the sum of the Floating Allocation Percentage (if the
Revolving Period is in effect), the Principal Allocation Percentage (if the
Early Amortization Period or the Accumulation Period is in effect), the floating
allocation percentages for all other outstanding Series of Investor Certificates
in their revolving periods and
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the principal allocation percentages for all other outstanding Series of
Investor Certificates in their early amortization or accumulation periods
exceeds 100%, then, after giving effect to any allocations to the Dealer
Overconcentration Series, Principal Collections shall be allocated among all
Series (including Series 2000-1) pari passu and pro rata on the basis of such
floating allocation percentages and principal allocation percentages.
"LIBOR" shall mean, with respect to any Interest Period, the offered
rates for deposits in United States dollars having a maturity of one month (the
"Index Maturity") commencing on the related Adjustment Date which appears on the
Telerate Page 3750 as of approximately 11:00 A.M., London time, on the date of
calculation as determined by the Trustee. If at least two such offered rates
appear on the Telerate Page 3750, LIBOR shall be the arithmetic mean (rounded
upwards, if necessary, to the nearest one-sixteenth of a percent) of such
offered rates. If fewer than two such offered rates appear, LIBOR with respect
to such Interest Period shall be determined at approximately 11:00 A.M., London
time, on such Adjustment Date on the basis of the rate at which deposits in
United States dollars having the Index Maturity are offered to prime banks in
the London interbank market by four major banks in the London interbank market
selected by the Trustee and in a principal amount equal to an amount of not less
than U.S. $1,000,000 and that is representative for a single transaction in such
market at such time. The Trustee shall request the principal London office of
each of such banks to provide a quotation of its rate. If at least two such
banks quote rates to the Trustee, LIBOR shall be the arithmetic mean (rounded
upwards, if necessary, as aforesaid) of such quotations. If fewer than two of
such banks quote rates to the Trustee, LIBOR with respect to such Interest
Period shall be the arithmetic mean (rounded upwards as aforesaid) of the rates
quoted at approximately 11:00 A.M., New York City time, on such Adjustment Date
by three major banks in New York, New York selected by the Trustee for loans in
United States dollars to leading European banks having the Index Maturity and in
a principal amount equal to an amount of not less than U.S. $1,000,000 and that
is representative for a single transaction in such market at such time;
provided, however, that if the banks selected as aforesaid are not providing
quotations as mentioned in this sentence, LIBOR in effect for the applicable
period shall be LIBOR in effect for the previous period. Promptly after
calculation of LIBOR with respect to any Interest Period, the Trustee shall, if
any Certificates are listed on the Luxembourg Stock Exchange, communicate the
result of such calculation to the Luxembourg Stock Exchange in accordance with
instructions from the Servicer (which may be standing instructions).
"London Business Day" shall mean any business day on which dealings in
deposits in United States dollars are transacted in the London interbank market.
"Monthly Interest" shall have the meaning specified in Section 4.2.
"Monthly Principal" shall have the meaning specified in Section 4.3.
"Monthly Servicing Fee" shall have the meaning specified in Section
3.1.
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"Net Receivables Rate" shall mean, with respect to each Distribution
Date immediately following an Interest Period, (i) the weighted average of the
interest rates borne by the Receivables during the second Collection Period
preceding such Distribution Date (interest payments on the Receivables at such
rates being due and payable in the Collection Period preceding such Distribution
Date) plus (ii) the product of (x) the Monthly Payment Rate for the Collection
Period preceding such Distribution Date, (y) the Discount Factor for such
Distribution Date and (z) twelve less (iii) 2% per annum, unless the Monthly
Servicing Fee has been waived (other than a deemed waiver under Section 3.1) for
such Distribution Date, in which case, solely for that Distribution Date, "2%
per annum" will be deemed to be replaced by "0% per annum".
"Principal Allocation Percentage" shall mean, with respect to any
Collection Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is the Invested Amount as of
the last day of the Revolving Period and the denominator of which is the
Unconcentrated Pool Balance as of the last day of the immediately preceding
Collection Period.
"Principal Funding Account" shall have the meaning specified in Section
4.4(c).
"Private Holder" shall mean each holder of a right to receive interest
or principal in respect of any direct or indirect interest in the Trust,
including any financial instrument or contract the value of which is determined
in whole or part by reference to the Trust (including the Trust's assets, income
of the Trust or distributions made by the Trust), excluding any interest in the
Trust represented by any Series or Class of Certificates or any other interests
as to which the Trustee has received an Opinion of Counsel to the effect that
such Series, Class or other interest shall be treated as debt or otherwise not
as an equity interest in either the Trust or the Receivables for federal income
tax purposes (unless such interest is convertible or exchangeable into an
interest in the Trust or the Trust's income or such interest provides for
payment of equivalent value). Notwithstanding the immediately preceding
sentence, "Private Holder" shall also include any other Person that the Seller
determines is a "partner" within the meaning of Section 1.7704-1(h)(1)(ii) of
the U.S. Treasury Regulations (including by reason of Section 1.7704-1(h)(3)) or
any successor provision of law. Any Person holding more than one interest in the
Trust, each of which separately would cause such Person to be a Private Holder,
shall be treated as a single Private Holder. Each holder of an interest in a
Private Holder which is a partnership, S corporation or a grantor trust under
the Internal Revenue Code shall be treated as a Private Holder unless excepted
with the consent of the Seller (which consent shall be based on an Opinion of
Counsel generally to the effect that the action taken pursuant to the consent
shall not cause the Trust to become a publicly traded partnership treated as a
corporation). Notwithstanding anything to the contrary herein, each Class C
Certificateholder shall be considered to be a Private Holder.
"Reassignment Amount" shall mean, with respect to any Distribution
Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (i) the Invested Amount on such
Distribution Date and (ii) the amounts distributable pursuant to Section
4.7(a)(i).
11
"Required Participation Percentage" shall mean, with respect to Series
2000-1, 105%; provided, however, that the Seller may, upon 10 days' prior notice
to the Trustee, each Rating Agency and any Enhancement Provider, reduce the
Required Participation Percentage to a percentage which shall not be less than
100%; provided, however, that the Rating Agency Condition is satisfied.
"Reserve Fund" shall have the meaning specified in Section 4.4(a).
"Reserve Fund Deposit Amount" shall mean, with respect to any
Distribution Date, the amount, if any, by which (i) the Reserve Fund Required
Amount for such Distribution Date exceeds (ii) the amount of funds in the
Reserve Fund after giving effect to any withdrawals therefrom on such
Distribution Date.
"Reserve Fund Required Amount" shall mean, with respect to any
Distribution Date, an amount equal to the product of (a) three and one-half
percent (3.5%) and (b) the aggregate outstanding principal balance of the Series
2000-1 Certificates as of such Distribution Date (after giving effect to any
changes therein on such Distribution Date).
"Revolving Period" shall mean the period beginning at the opening of
business on the Closing Date and ending on the earlier of (a) the close of
business on the day immediately preceding the Accumulation Period Commencement
Date, and (b) the close of business on the day an Early Amortization Period
commences; provided, however, that, if any Early Amortization Period ends as
described in clause (c) of the definition of Early Amortization Period in the
Agreement, the Revolving Period shall recommence as of the close of business on
the day such Early Amortization Period ends.
"Securities Act" shall mean the Securities Act of 1933, as amended.
"Series 2000-1" or the "Series 2000-1 Certificates" shall mean the
Series of Investor Certificates, the terms of which are specified in this Series
Supplement.
"Series 2000-1 Accounts" shall have the meaning specified in Section
4.4(f).
"Series 2000-1 Allocation Percentage" for a Collection Period shall
mean the percentage equivalent of a fraction, the numerator of which is the
Invested Amount on the last Business Day of the Collection Period immediately
preceding such Collection Period and the denominator of which is the Trust
Invested Amount on such last Business Day.
"Series 2000-1 Certificateholders" shall mean, collectively, the Class
A Certificateholders, the Class B Certificateholders and the Class C
Certificateholders.
"Series 2000-1 Certificateholders' Interest" shall mean that portion of
the Certificateholders' Interest evidenced by the Series 2000-1 Certificates.
12
"Series 2000-1 Certificates" shall mean, collectively, the Class A
Certificates, the Class B Certificates and the Class C Certificates.
"Series 2000-1 Excess Principal Collection" shall mean that portion of
Excess Principal Collections allocated to Series 2000-1 pursuant to Section
4.11.
"Series 2000-1 Principal Shortfall" with respect to any Distribution
Date, shall equal the excess of (i) (x) for any Distribution Date with respect
to the Accumulation Period, the Controlled Deposit Amount or (y) for any
Distribution Date with respect to an Early Amortization Period, the Invested
Amount, over (ii) Available Investor Principal Collections for such Distribution
Date (excluding any portion thereof attributable to Excess Principal
Collections).
"Servicer Advance" shall have the meaning specified in Section 3.2.
"Servicing Fee Rate" shall mean, with respect to Series 2000-1, 2.00%.
"Special Payment Date" shall mean each Distribution Date with respect
to an Early Amortization Period (other than an Early Amortization Period that
has ended as described in clause (c) of the definition of Early Amortization
Period in the Agreement).
"Telerate Page 3750" shall mean the display designated as page 3750 on
Telerate (or such other page as may replace such page on that service for the
purpose of displaying London interbank offered rates of major banks).
"Termination Date" for Series 2000-1 shall mean the April 2005
Distribution Date.
"Termination Proceeds" shall mean any proceeds arising out of a sale of
Receivables (or interests therein) pursuant to Section 12.2(c) of the Agreement
with respect to Series 2000-1.
"Yield Supplement Account" shall have the meaning specified in Section
4.4(e).
"Yield Supplement Account Deposit Amount" shall mean, with respect to
any Distribution Date, the amount, if any, by which the Yield Supplement Account
Required Amount exceeds the amount on deposit in the Yield Supplement Account
after giving effect to any withdrawals from the Yield Supplement Account on that
Distribution Date.
"Yield Supplement Account Required Amount" shall mean an amount equal
to one-half of one percent (0.5%) of the aggregate initial principal balance of
the Series 2000-1 Certificates.
(b) Notwithstanding anything to the contrary in this Series Supplement
or the Agreement, the term "Rating Agency" shall mean, whenever used in this
Series Supplement or the Agreement with respect to Series 2000-1, Standard &
Poor's, Xxxxx'x and Fitch. As used in this Series Supplement and in the
Agreement with respect to Series 2000-1, "highest
13
investment category" shall mean (i) in the case of Standard & Poor's, AAA and
A-1+, as applicable, (ii) in the case of Xxxxx'x, Aaa and P-1, as applicable,
and (iii) in the case of Fitch, AAA and F-1+, as applicable.
(c) All capitalized terms used herein and not otherwise defined herein
have the meanings ascribed to them in the Agreement. The definitions in Section
2.1 are applicable to the singular as well as the plural forms of such terms and
to the masculine as well as to the feminine and neuter genders of such terms.
(d) The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Series Supplement shall refer to this Series Supplement
as a whole and not to any particular provision of this Series Supplement;
references to any Article, Section or Exhibit are references to Articles,
Sections and Exhibits in or to this Series Supplement unless otherwise
specified; and the term "including" means "including without limitation".
(e) All references to any agreement (including the Agreement) shall be
understood to be references to such agreement as it may be amended, amended and
restated or otherwise modified from time to time.
ARTICLE III
Servicing Fee
SECTION 3.1 Servicing Compensation. A monthly servicing fee for your
series (the "Monthly Servicing Fee") shall be payable to the Servicer, in
arrears, on each Distribution Date in respect of any Collection Period (or
portion thereof) occurring prior to the first Distribution Date on which the
Invested Amount is zero, in an amount equal to one-twelfth of the product of (a)
the Servicing Fee Rate and (b) the product of (i) the Series 2000-1 Allocation
Percentage and (ii) the Pool Balance as of the last day of the second Collection
Period preceding such Distribution Date. The share of the Monthly Servicing Fee
allocable to the Series 2000-1 Certificateholders with respect to any
Distribution Date (the "Certificateholders' Monthly Servicing Fee") shall be
equal to one-twelfth of the product of (a) the Servicing Fee Rate and (b) the
Invested Amount as of the last day of the second Collection Period second
preceding such Distribution Date and shall be payable in the manner set forth in
Section 4.6 and Section 4.10; provided, however, that with respect to the first
Distribution Date for Series 2000-1, clause (b) of this sentence shall be deemed
to refer to the Invested Amount on the Closing Date. Notwithstanding the
foregoing, with respect to the first Distribution Date for Series 2000-1, each
reference in the preceding sentences of this Section to one-twelfth shall be
deemed to be replaced by a fraction, the numerator of which is the number of
days from but excluding the Closing Date to and including the last day of the
month in which the Closing Date occurs and the denominator of which is 360.
The remainder of the Monthly Servicing Fee shall be paid by the Seller
and in no event shall the Trust, the Trustee or the Series 2000-1
Certificateholders be liable for the share of the
14
Monthly Servicing Fee to be paid by the Seller; and the remainder of the
Servicing Fee shall be paid by the Seller and the Investor Certificateholders of
other Series, the Trustee and the Series 2000-1 Certificateholders shall in no
event be liable for the share of the Servicing Fee to be paid by the Seller or
the Investor Certificateholders of other Series. The Certificateholders' Monthly
Servicing Fee shall be payable to the Servicer solely to the extent amounts are
available for distribution in accordance with the terms of this Series
Supplement or to the extent that amounts may be netted with respect thereto in
accordance with the terms of this Series Supplement or the Agreement.
The Servicer shall be permitted, in its sole discretion, to waive the
Monthly Servicing Fee for any Distribution Date by notice to the Trustee on or
before the related Determination Date; provided that the Servicer reasonably
believes that sufficient Non-Principal Collections shall be available on any
future Distribution Date to pay the waived Monthly Servicing Fee. If the
Servicer so waives the Monthly Servicing Fee for any Distribution Date, the
Monthly Servicing Fee and the Certificateholders' Monthly Servicing Fee for such
Distribution Date shall be deemed to be zero for all purposes of this Series
Supplement and the Agreement; provided, however, that such Monthly Servicing Fee
shall be paid on a future Distribution Date to the extent amounts are available
therefor pursuant to Section 4.10(a) or to the extent that amounts may be netted
with respect thereto in accordance with the terms of this Series Supplement or
the Agreement; provided further, however, that, to the extent any such waived
Monthly Servicing Fee is so paid, the related portion of the Monthly Servicing
Fee to be paid by the Seller shall be paid by the Seller to the Servicer.
If the Servicer is DFS, and payment of any portion of the Monthly
Servicing Fee to DFS on a Distribution Date would require a withdrawal from the
Reserve Fund, then absent affirmative notice to the Trustee by DFS to the
contrary, DFS shall be deemed to have waived payment of that portion on that
Distribution Date; provided that a deemed waiver described in this sentence
shall not occur on more than two Distribution Dates in any twelve month period
and shall not occur on any two consecutive Distribution Dates.
SECTION 3.2 Servicer Advances. On or before each Distribution Date, the
Servicer will deposit into the Collection Account as an advance (a "Servicer
Advance") an amount equal to the amount of interest due but unpaid on any
Receivable for the related Collection Period (but only to the extent that the
Servicer reasonably expects to recover that Servicer Advance from subsequent
payments on that delinquent Receivable). No Servicer Advance shall be made by
the Servicer for the principal portion of the Receivables or for Defaulted
Receivables. The Servicer shall reimburse itself for a Servicer Advance on the
subsequent Determination Date or Distribution Date (and, if necessary, on other
Determination Dates or Distribution Dates) out of funds collected on all
Receivables prior to the deposit of funds in the Collection Account.
15
ARTICLE IV
Rights of Series 2000-1 Certificateholders and
Allocation and Application of Collections
SECTION 4.1 Allocations; Payments to Seller. (a) Subject to Section
4.3(c) of the Agreement, and after giving effect to any allocations to the
Dealer Overconcentration Series, Collections of Non-Principal Receivables and
Principal Receivables, Miscellaneous Payments and Defaulted Amounts, as they
relate to Series 2000-1, shall be allocated and distributed as set forth in this
Article IV.
(b) The Servicer shall instruct the Trustee to withdraw from the
Collection Account and pay (and the Trustee shall so withdraw and pay) to the
Seller on each Deposit Date any funds not required to be held therein (or not
required to be transferred from the Collection Account to a deposit account for
the benefit of Investor Certificateholders of any Series).
The withdrawals to be made from the Collection Account pursuant to this
Section 4.1(b) do not apply to deposits into the Collection Account that do not
represent Collections, including Miscellaneous Payments, payment of the purchase
price for the Certificateholders' Interest pursuant to Section 2.3 of the
Agreement, payment of the purchase price for the Series 2000-1
Certificateholders' Interest pursuant to Section 7.1 of this Series Supplement
and proceeds from the sale, disposition or liquidation of Receivables pursuant
to Section 9.2 or 12.2 of the Agreement.
SECTION 4.2 Monthly Interest; Determination of Certificate Rate. (a)
"Monthly Interest" with respect to the Series 2000-1 Certificates on any
Distribution Date shall be an amount equal to the sum of the Class A Monthly
Interest, the Class B Monthly Interest and the Class C Monthly Interest.
Interest on the respective outstanding principal balance of each Class of
Certificates shall accrue at the Class A Certificate Rate, Class B Certificate
Rate or Class C Certificate Rate, as applicable, and shall be payable to
Certificateholders on each Distribution Date.
On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class A Interest Shortfall"),
of (x) the Class A Monthly Interest for the Interest Period applicable to such
Distribution Date over (y) the amount which shall be available to be paid to the
Class A Certificateholders as Class A Monthly Interest from the Interest Funding
Account on such Distribution Date pursuant to this Series Supplement. "Class A
Additional Interest" shall mean, as of any Distribution Date, an amount equal to
the product of (i) the Class A Certificate Rate for the Interest Period then
ended, (ii) a fraction the numerator of which is the actual number of days in
that Interest Period and the denominator of which is 360, and (iii) the Class A
Interest Shortfall, if any, for the previous Distribution Date. Notwithstanding
anything to the contrary herein, Class A Additional Interest shall be payable to
the Interest Funding Account or distributed to Class A Certificateholders only
to the extent permitted by applicable law.
16
On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class B Interest Shortfall"),
of (x) the Class B Monthly Interest for the Interest Period applicable to such
Distribution Date over (y) the amount which shall be available to be paid to the
Class B Certificateholders as Class B Monthly Interest from the Interest Funding
Account on such Distribution Date pursuant to this Series Supplement. "Class B
Additional Interest" shall mean, as of any Distribution Date, an amount equal to
the product of (i) the Class B Certificate Rate for the Interest Period then
ended, (ii) a fraction the numerator of which is the actual number of days in
that Interest Period and the denominator of which is 360, and (iii) the Class B
Interest Shortfall, if any, for the previous Distribution Date. Notwithstanding
anything to the contrary herein, Class B Additional Interest shall be payable to
the Interest Funding Account or distributed to Class B Certificateholders only
to the extent permitted by applicable law.
On the Determination Date preceding each Distribution Date, the
Servicer shall determine the excess, if any (the "Class C Interest Shortfall"),
of (x) the Class C Monthly Interest for the Interest Period applicable to such
Distribution Date over (y) the amount which shall be available to be paid to the
Class C Certificateholders as Class C Monthly Interest from the Interest Funding
Account on such Distribution Date pursuant to this Series Supplement. "Class C
Additional Interest" shall mean, as of any Distribution Date, an amount equal to
the product of (i) the Class C Certificate Rate for the Interest Period then
ended, (ii) a fraction the numerator of which is the actual number of days that
Interest Period and the denominator of which is 360, and (iii) such Class C
Interest Shortfall, if any, for the previous Distribution Date. Notwithstanding
anything to the contrary herein, Class C Additional Interest shall be payable to
the Interest Funding Account or distributed to Class C Certificateholders only
to the extent permitted by applicable law.
(b) The Distribution Date Statement shall specify the applicable Net
Receivables Rate for the next Interest Period. Based on such Distribution Date
Statement (and on the Trustee's calculation of LIBOR) the Trustee shall
determine the Class A, Class B and Class C Certificate Rates for each Interest
Period on the Determination Date immediately preceding each Interest Period. The
Trustee shall notify the Servicer on each Adjustment Date of the Trustee's
determination of LIBOR. The establishment of LIBOR on each Adjustment Date (or
in the case of the date specified in the proviso to the definition of Adjustment
Date, promptly following such date) by the Trustee and the Trustee's calculation
of the Class A, Class B and Class C Certificate Rates shall (in the absence of
manifest error) be final and binding.
SECTION 4.3 Determination of Monthly Principal. The amount of monthly
principal ("Monthly Principal") distributable with respect to the Series 2000-1
Certificates on each Distribution Date with respect to an Early Amortization
Period and the Accumulation Period shall be equal to the Available Investor
Principal Collections with respect to such Distribution Date; provided, however,
that for each Distribution Date with respect to the Accumulation Period, Monthly
Principal, at the option of the Seller, may be increased to include amounts
otherwise payable or distributable to the Seller (including without limitation
(i) amounts allocable to other Series but not required to be paid to such other
Series on such Distribution Date and not required
17
to be kept in a deposit account for such other Series after such Distribution
Date and (ii) Collections otherwise allocable to the Seller's Interest)) or may
be limited to the Controlled Deposit Amount for such Distribution Date; and
provided further, however, that Monthly Principal shall not exceed the
outstanding principal balance of the Series 2000-1 Certificates.
SECTION 4.4 Establishment of Reserve Fund and Funding Accounts. (a)(i)
The Trustee, for the benefit of the Series 2000-1 Certificateholders, shall
cause to be established and maintained in the name of the Trustee, on behalf of
the Trust, an Eligible Deposit Account (the "Reserve Fund") which shall be
identified as the "Reserve Fund for the Distribution Financial Services
Floorplan Master Trust, Series 2000-1" and shall bear a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2000-1 Certificateholders.
(ii) At the direction of the Servicer, funds on deposit in the Reserve
Fund shall be invested by the Trustee in Eligible Investments selected by the
Servicer that shall mature so that such funds shall be available at the close of
business on or before the Business Day next preceding the following Distribution
Date. All Eligible Investments shall be held by the Trustee for the benefit of
the Series 2000-1 Certificateholders. On each Distribution Date, all interest
and other investment earnings (net of losses and investment expenses) on funds
on deposit in the Reserve Fund and received prior to such Distribution Date
shall be applied as set forth in Section 4.6(a) of this Series Supplement. Funds
deposited in the Reserve Fund on the Business Day preceding a Distribution Date
are not required to be invested overnight.
(b)(i) The Trustee, for the benefit of the Series 2000-1
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Interest Funding
Account"), which shall be identified as the "Interest Funding Account for the
Distribution Financial Services Floorplan Master Trust, Series 2000-1" and shall
bear a designation clearly indicating that the funds deposited therein are held
for the benefit of the Series 2000-1 Certificateholders.
(ii) At the direction of the Servicer, funds on deposit in the Interest
Funding Account shall be invested by the Trustee in Eligible Investments
selected by the Servicer that shall mature so that such funds shall be available
at the close of business on or before the Business Day next preceding the
following Distribution Date. All such Eligible Investments shall be held by the
Trustee for the benefit of the Series 2000-1 Certificateholders. On each
Distribution Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Interest Funding Account and
received prior to such Distribution Date shall be applied as set forth in
Section 4.6(a) of this Series Supplement. Funds deposited in the Interest
Funding Account on the Business Day preceding a Distribution Date are not
required to be invested overnight.
(c)(i) The Trustee, for the benefit of the Series 2000-1
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Principal Funding
Account"), which shall be identified as the "Principal Funding Account for
Distribution Financial Services Floorplan Master Trust, Series 2000-1" and shall
bear a
18
designation clearly indicating that the funds deposited therein are held for the
benefit of the Series 2000-1 Certificateholders.
(ii) At the direction of the Servicer, funds on deposit in the
Principal Funding Account shall be invested by the Trustee in Eligible
Investments selected by the Servicer that shall mature so that such funds shall
be available at the close of business on or before the Business Day next
preceding the following Distribution Date. All such Eligible Investments shall
be held by the Trustee for the benefit of the Series 2000-1 Certificateholders.
On each Distribution Date all interest and other investment earnings (net of
losses and investment expenses) on funds on deposit in the Principal Funding
Account and received prior to such Distribution Date shall be applied as set
forth in Section 4.6(a) of this Series Supplement. Funds deposited in the
Principal Funding Account on the Business Day preceding the Expected Final
Payment Date are not required to be invested overnight.
(d)(i) The Trustee, for the benefit of the Series 2000-1
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Excess Funding Account"),
which shall be identified as the "Excess Funding Account for Distribution
Financial Services Floorplan Master Trust, Series 2000-1" and shall bear a
designation clearly indicating that the funds deposited therein are held for the
benefit of the Series 2000-1 Certificateholders.
(ii) At the direction of the Servicer, funds on deposit in the Excess
Funding Account shall be invested by the Trustee in Eligible Investments
selected by the Servicer. All such Eligible Investments shall be held by the
Trustee for the benefit of the Series 2000-1 Certificateholders. On each
Distribution Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Excess Funding Account and
received prior to such Distribution Date shall be applied as set forth in
Section 4.6(a) of this Series Supplement. Funds deposited in the Excess Funding
Account on any Distribution Date shall be invested in Eligible Investments that
shall mature so that such funds shall be available on or before the close of
business on the Business Day next preceding the following Distribution Date;
provided that if, pursuant to Section 4.12, deposits to and withdrawals from the
Excess Funding Account are being made on a weekly or daily basis, then such
Eligible Investments shall mature on each Business Day on a weekly or daily
basis, as the case may be; provided further that such Eligible Investments shall
still mature so that funds shall be available on or before the close of business
on the Business Day next preceding the following Distribution Date. Funds
deposited in the Excess Funding Account on the Business Day preceding a
Distribution Date are not required to be invested overnight.
(e)(i) The Trustee, for the benefit of the Series 2000-1
Certificateholders, shall establish and maintain in the name of the Trustee, on
behalf of the Trust, an Eligible Deposit Account (the "Yield Supplement
Account"), which shall be identified as the "Yield Supplement Account for the
Distribution Financial Services Floorplan Master Trust, Series 2000-1" and shall
bear a designation clearly indicating that the funds deposited therein are held
for the benefit of the Series 2000-1 Certificateholders.
19
(ii) At the direction of the Servicer, funds on deposit in the Yield
Supplement Account shall be invested by the Trustee in Eligible Investments
selected by the Servicer that shall mature so that such funds shall be available
at the close of business on or before the Business Day next preceding the
following Distribution Date. All such Eligible Investments shall be held by the
Trustee for the benefit of the Series 2000-1 Certificateholders. On each
Distribution Date, all interest and other investment earnings (net of losses and
investment expenses) on funds on deposit in the Yield Supplement Account and
received prior to such Distribution Date shall be applied as set forth in
Section 4.6(a) of this Series Supplement. Funds deposited in the Yield
Supplement Account on the Business Day preceding a Distribution Date are not
required to be invested overnight.
(f)(i) The Trustee shall possess all right, title and interest in and
to all funds on deposit from time to time in, and all Eligible Investments
credited to, the Reserve Fund, the Interest Funding Account, the Principal
Funding Account, the Yield Supplement Account and the Excess Funding Account
(collectively, the "Series 2000-1 Accounts") and in all proceeds thereof. The
Series 2000-1 Accounts shall be under the sole dominion and control of the
Trustee for the benefit of the Certificateholders. If, at any time, any of the
Series 2000-1 Accounts ceases to be an Eligible Deposit Account, the Trustee (or
the Servicer on its behalf) shall within 10 Business Days (or such longer
period, not to exceed 30 calendar days, as to which each Rating Agency may
consent) establish a new Series 2000-1 Account meeting the conditions specified
in paragraph (a)(i), (b)(i), (c)(i), (d)(i) or (e)(i) above, as applicable, as
an Eligible Deposit Account and shall transfer any cash and/or investments to
such new Series 2000-1 Account. Neither the Seller, the Servicer nor any other
Person or entity claiming by, through or under the Seller, the Servicer or any
such other Person or entity shall have any right, title or interest in, or any
right to withdraw any amount from, any Series 2000-1 Account, except as
expressly provided herein. Schedule 1, which is hereby incorporated into and
made part of this Series Supplement, identifies each Series 2000-1 Account by
setting forth the account number of each such account, the account designation
of each such account and the name of the institution with which such account has
been established. If a substitute Series 2000-1 Account is established pursuant
to this Section, the Servicer shall provide to the Trustee an amended Schedule
1, setting forth the relevant information for such substitute Series 2000-1
Account.
(ii) Pursuant to the authority granted to the Servicer in Section
3.1(a) of the Agreement, the Servicer shall have the power, revocable by the
Trustee, to make withdrawals and payments or to instruct the Trustee to make
withdrawals and payments from the Series 2000-1 Accounts for the purposes of
carrying out the Servicer's or the Trustee's duties hereunder.
(g) Unless otherwise agreed to by the Rating Agencies, at no time may
funds on deposit in any Series 2000-1 Account in an amount greater than 10% of
the outstanding principal balance of the Certificates be invested in Eligible
Investments (other than obligations of the United States government or
investments in a mutual fund that does not have credit concentrations greater
than 10%) of any single entity or its Affiliates.
20
(h) Upon payment in full of all amounts payable on the Series 2000-1
Certificates pursuant to this Series Supplement, or any earlier date
contemplated by this Series Supplement, any funds remaining on deposit in any
Series 2000-1 Account shall be paid to the Seller.
(i) The Trustee shall not in any way be held liable by reason of any
insufficiency in any Series 2000-1 Account held by the Trustee resulting from
any investment loss on any Eligible Investment included therein (except to the
extent that the Trustee is the obligor and has defaulted thereon).
SECTION 4.5 Deficiency Amount. On each Determination Date, with respect
to the related Distribution Date (the "current Distribution Date"), the Servicer
shall determine the amount (the "Deficiency Amount"), if any, by which
(a) the sum of
(i) the Monthly Interest for the current Distribution Date,
(ii) any Monthly Interest for any prior Distribution Dates not
distributed to the Certificateholders on a prior Distribution Date,
(iii) Additional Interest, if any, for the current Distribution
Date and any Additional Interest for any prior Distribution Date not
distributed to the Certificateholders on such prior Distribution Date
(but only to the extent permitted by applicable law),
(iv) the Certificateholders' Monthly Servicing Fee for the
current Distribution Date,
(v) the Investor Default Amount for the current Distribution
Date, and
(vi) the Series 2000-1 Allocation Percentage of the amount of any
Adjustment Payment required to be deposited in the Collection Account
pursuant to Section 3.9(a) of the Agreement with respect to the
related Collection Period that has not been so deposited as of such
Determination Date
exceeds
(b) the sum of Investor Non-Principal Collections for the current
Distribution Date plus any Investment Proceeds, if any, with respect
to such Distribution Date.
SECTION 4.6 Application of Investor Non-Principal Collections, Investment
Proceeds, Servicer Advances and Available Investor Principal Collections. The
Servicer shall direct the
21
Trustee (by setting forth the following amounts in the related Distribution Date
Statement) to make the following distributions on each Distribution Date (and
the Trustee shall distribute):
(a) On each Distribution Date, an amount equal to the sum of Investor
Non-Principal Collections on deposit in the Collection Account (after giving
effect to repayment to the Servicer of any Servicer Advances from any previous
Distribution Dates) and any Investment Proceeds and the Servicer Advance, if
any, for such Distribution Date, with respect to such Distribution Date in the
following priority:
(i) first, an amount equal to the Class A Monthly Interest
for such Distribution Date, plus the amount of any Class A Monthly
Interest for any prior Distribution Dates not distributed to the Class
A Certificateholders on such prior Distribution Dates plus (but only to
the extent permitted under applicable law) the amount of any Class A
Additional Interest for the current Distribution Date and, without
duplication, any Class A Additional Interest previously due but not
distributed to the Class A Certificateholders on prior Distribution
Dates, shall be deposited to the Interest Funding Account;
(ii) second, an amount equal to the Class B Monthly
Interest for such Distribution Date, plus the amount of any Class B
Monthly Interest for any prior Distribution Dates not distributed to
the Class B Certificateholders on such prior Distribution Dates plus
(but only to the extent permitted under applicable law) the amount of
any Class B Additional Interest for the current Distribution Date and,
without duplication, any Class B Additional Interest previously due but
not distributed to the Class B Certificateholders on prior Distribution
Dates, shall be deposited to the Interest Funding Account;
(iii) third, an amount equal to the Class C Monthly
Interest for such Distribution Date, plus the amount of any Class C
Monthly Interest for any prior Distribution Dates not distributed to
the Class C Certificateholders on such prior Distribution Dates plus
(but only to the extent permitted under applicable law) the amount of
any Class C Additional Interest for the current Distribution Date and,
without duplication any Class C Additional Interest previously due but
not distributed to the Class C Certificateholders on prior Distribution
Dates, shall be deposited to the Interest Funding Account;
(iv) fourth, so long as DFS is not the Servicer, an amount
equal to the Certificateholders' Monthly Servicing Fee for such
Distribution Date shall be distributed to the Servicer (unless such
amount has been netted against deposits to the Collection Account);
(v) fifth, an amount equal to the Reserve Fund Deposit
Amount, if any, for such Distribution Date shall be deposited in the
Reserve Fund;
22
(vi) sixth, an amount equal to the Investor Default
Amount, if any, for such Distribution Date shall be treated as a
portion of Investor Principal Collections for such Distribution Date;
(vii) seventh, an amount required to reimburse
unreimbursed Class A Investor Charge-Offs, Class B Investor Charge-Offs
and Class C Investor Charge-Offs pursuant to Section 4.9 shall be
treated as a portion of Investor Principal Collections for such
Distribution Date;
(viii) eighth, so long as DFS is the Servicer, an amount
equal to the Certificateholders' Monthly Servicing Fee for that
Distribution Date shall be distributed to the Servicer, unless that
amount has been netted against deposits to the Collection Account by
DFS or waived;
(ix) ninth, any unpaid Class A Carry-over Amount, Class B
Carry-over Amount or Class C Carry-over Amount for any previous
Distribution Date, plus to the extent permitted under applicable law,
the amount of any Class A Carry-over Amount Additional Interest, Class
B Carry-over Amount Additional Interest and Class C Carry-over Amount
Additional Interest for the current Distribution Date and, without
duplication, any Class A Carry-over Amount Additional Interest, Class B
Carry-over Amount Additional Interest and Class C Carry-over Amount
Additional Interest previously due but not distributed to the Class A
Certificateholders, Class B Certificateholders and Class C
Certificateholders, respectively, shall be deposited in the Interest
Funding Account;
(x) tenth, if that Distribution Date occurs prior to the
beginning of the Accumulation Period and prior to the occurrence of an
Early Amortization Event, an amount equal to the Yield Supplement
Account Deposit Amount, if any, for that Distribution Date will be
deposited in the Yield Supplement Account; and
(xi) eleventh, the balance, if any, shall constitute
"Excess Servicing" and shall be allocated and distributed as set forth
in Section 4.10.
(b) On each Distribution Date with respect to the Revolving Period, the
Servicer shall direct the Trustee in writing by setting forth the following
amounts on the Distribution Date Statement to apply an amount equal to the
Available Investor Principal Collections deposited in the Collection Account for
the related Collection Period shall be applied in the following priority:
(i) first, if (A) the Unconcentrated Pool Balance at the
end of the preceding Collection Period is less than the Unconcentrated
Pool Balance at the end of the second preceding Collection Period and
(B) the Unconcentrated Pool Balance at the end of the preceding
Collection Period is less than the Required Participation Amount for
such Distribution Date (calculated before giving effect to any deposits
to be made on such Distribution Date to the Excess Funding Account and
any excess funding account for any
23
other Series in their revolving periods to be made on such Distribution
Date), then the Servicer shall direct the Trustee to deposit (and the
Trustee shall deposit) Available Investor Principal Collections into
the Excess Funding Account in an amount which shall reduce the Invested
Amount such that, together with the deposits to the excess funding
accounts, if any, (and any resulting reductions in the invested
amounts) for other outstanding Series in their revolving periods for
such Distribution Date, the Unconcentrated Pool Balance is equal to the
Required Participation Amount, and
(ii) second, an amount equal to the balance (such balance
being part of "Excess Principal Collections"), if any, of such
Available Investor Principal Collections shall be applied in accordance
with Section 4.4 of the Agreement.
For purposes of determining the amount to be applied pursuant to subparagraph
(i) above, allocations of the amounts to be deposited in the Excess Funding
Account and the excess funding account for other outstanding Series shall be
made pro rata on the basis of the invested amounts (including the Invested
Amount for Series 2000-1).
If the Servicer has elected in respect of a Collection Period to make
withdrawals from the Excess Funding Account on a daily or weekly basis pursuant
to Section 4.12(b), then deposits into the Excess Funding Account required by
this Section 4.6(b) shall be made on each Business Day in such Collection Period
(if daily withdrawals and deposits have been elected) or on each Wednesday (or
the next succeeding Business Day if such Wednesday is not a Business Day) in
such Collection Period (if weekly withdrawals and deposits have been elected).
In the case of such election, the Unconcentrated Pool Balance referred to in
clause (B) above shall be the Unconcentrated Pool Balance on the preceding
Business Day, in the case of an election to make daily deposits and withdrawals,
and on the Monday next preceding the related Wednesday, in the case of an
election to make weekly deposits and withdrawals.
(c) On each Distribution Date (x) with respect to the
Accumulation Period or (y) an Early Amortization Period (if a Responsible
Officer of the Trustee has actual knowledge of such Early Amortization Period),
an amount equal to the Available Investor Principal Collections on deposit in
the Collection Account shall be distributed in the following priority:
(i) first, an amount equal to Monthly Principal for such
Distribution Date shall be deposited by the Servicer or the Trustee
into the Principal Funding Account; and
(ii) second, for each Distribution Date with respect to
the Accumulation Period (unless an Early Amortization Event has
occurred), an amount equal to the balance (such balance being part of
"Excess Principal Collections"), if any, of such Available Investor
Principal Collections shall be applied in accordance with the written
instructions of the Servicer in accordance with Section 4.4 of the
Agreement.
SECTION 4.7 Distributions to Series 2000-1 Certificateholders. (a) The
Servicer shall direct the Trustee (by setting forth the amounts in Section
4.7(a)(i) in the related Distribution
24
Date Statement) to make (and the Trustee shall make) the following distributions
at the following times from the Interest Funding Account, the Principal Funding
Account and the Excess Funding Account:
(i) on each Distribution Date, available amounts on
deposit in the Interest Funding Account shall be distributed to the
Series 2000-1 Certificateholders in the following order of priority:
(A) first, to the Class A Certificateholders, an
amount equal to the sum of (i) the Class A Monthly Interest
for the current Distribution Date, plus (ii) any Class A
Monthly Interest that was not distributed on any prior
Distribution Date to the Class A Certificateholders, plus
(iii) to the extent permitted under applicable law, the amount
of any Class A Additional Interest for the current
Distribution Date and, without duplication, any Class A
Additional Interest previously due but not distributed to the
Class A Certificateholders;
(B) second, to the Class B Certificateholders, an
amount equal to the sum of (i) the Class B Monthly Interest
for the current Distribution Date, plus (ii) any Class B
Monthly Interest that was not distributed on any Distribution
Date prior to the current Distribution Date to the Class B
Certificateholders, plus (iii) to the extent permitted under
applicable law, the amount of any Class B Additional Interest
for the current Distribution Date and, without duplication,
any Class B Additional Interest previously due but not
distributed to the Class B Certificateholders;
(C) third, to the Class C Certificateholders, an
amount equal to the sum of (i) the Class C Monthly Interest
for the current Distribution Date, plus (ii) any Class C
Monthly Interest that was not distributed on any Distribution
Date prior to the current Distribution Date to the Class C
Certificateholders, plus (iii) to the extent permitted under
applicable law, the amount of any Class C Additional Interest
for the current Distribution Date and, without duplication,
any Class C Additional Interest previously due but not
distributed to the Class C Certificateholders;
(D) fourth, to the Class A Certificateholders, the
sum of any Class A Carry-over Amount for the current
Distribution Date plus any unpaid Class A Carry-over Amount
for any previous Distribution Date plus to the extent
permitted under applicable law, the amount of any Class A
Carry-over Amount Additional Interest for the current
Distribution Date and, without duplication, any Class A
Carry-over Amount Additional Interest previously due but not
distributed to the Class A certificateholders;
(E) fifth, to the Class B Certificateholders, the
sum of any Class B Carry-over Amount for the current
Distribution Date plus any unpaid Class B
25
Carry-over Amount for any previous Distribution Date plus to
the extent permitted under applicable law, the amount of any
Class B Carry-over Amount Additional Interest for the current
Distribution Date and, without duplication, any Class B
Carry-over Amount Additional Interest previously due but not
distributed to the Class B certificateholders; and
(F) sixth, to the Class C Certificateholders, the sum
of any Class C Carry-over Amount for the current Distribution
Date plus any unpaid Class C Carry-over Amount for any
previous Distribution Date plus to the extent permitted under
applicable law, the amount of any Class C Carry-over Amount
Additional Interest for the current Distribution Date and,
without duplication, any Class C Carry-over Amount Additional
Interest previously due but not distributed to the Class C
certificateholders.
(ii) on each Special Payment Date (if a Responsible Officer of
the Trustee has actual knowledge of the Early Amortization Period) and
on the Expected Final Payment Date, all amounts on deposit in the
Principal Funding Account shall be distributed to the Series 2000-1
Certificateholders in the following order of priority: (A) first, to
the Class A Certificateholders until the outstanding principal balance
of the Class A Certificates has been reduced to zero; (B) second, to
the Class B Certificateholders until the outstanding principal balance
of the Class B Certificates has been reduced to zero; and (C) to the
Class C Certificateholders until the outstanding principal balance of
the Class C Certificates has been reduced to zero; provided, however,
that the maximum amount distributed pursuant to this clause (ii) on any
Distribution Date shall not exceed the excess, if any, of (x) the sum
of the outstanding principal balance of the Class A, Class B and Class
C Certificates, over (y) the sum of the unreimbursed Class A Investor
Charge-Offs, Class B Investor Charge-Offs and Class C Investor
Charge-Offs, each on such Distribution Date.
(b) The distributions to be made pursuant to this Section are subject
to the provisions of Sections 2.3, 9.2, 10.1 and 12.2 of the Agreement and
Section 8.1 and 8.2 of this Series Supplement.
SECTION 4.8 Application of Reserve Fund. (a) If Investor Non-Principal
Collections and Investment Proceeds on any Distribution Date (plus the amount of
any Servicer Advance for such Distribution Date) are not sufficient to make the
entire distributions required on such Distribution Date by Sections 4.6(a)(i),
(ii), (iii), (iv), (vi) and (viii), the Servicer shall direct the Trustee to
withdraw (and the Trustee shall withdraw) funds from the Reserve Fund to the
extent available therein, and apply such funds to complete the distributions
pursuant to Section 4.6(a)(i), (ii), (iii), (iv), (vi) and (viii) in the
numerical order thereof.
(b) On the Termination Date, any funds in the Reserve Fund shall be
treated as Available Investor Principal Collections. Upon payment in full of the
outstanding principal balance of the
26
Series 2000-1 Certificates, any funds remaining on deposit in the Reserve Fund
shall be paid to the Seller.
SECTION 4.9 Investor Charge-Offs. If on any Distribution Date (after
giving effect to the allocations, distributions, withdrawals and deposits to be
made on such Distribution Date) the balance of the Reserve Fund is zero, then
the Class C Invested Amount shall be reduced by the lesser of the Deficiency
Amount for that Distribution Date and the Investor Default Amount for that
Distribution Date (the lesser of such Deficiency Amount and such Investor
Default Amount being a "Class C Investor Charge-Off"). In the event that any
such reduction of the Class C Invested Amount would cause the Class C Invested
Amount to be a negative number, the Class C Invested Amount shall be maintained
at or reduced to zero, and the Class B Invested Amount shall be reduced by the
amount of such excess (the amount of such reduction being a "Class B Investor
Charge-Off"). In the event that any such reduction of the Class B Invested
Amount would cause the Class B Invested Amount to be a negative number, the
Class B Invested Amount shall be maintained at or reduced to zero, and the Class
A Invested Amount shall be reduced by the amount of such excess but not by more
than the Class A Invested Amount on such Distribution Date (the amount of such
reduction being a "Class A Investor Charge-Off"). Class A Investor Charge-Offs,
Class B Investor Charge-Offs and Class C Investor Charge-Offs shall thereafter
be reimbursed (in that order) and the Class A Invested Amount, Class B Invested
Amount and Class C Invested Amount increased (in that order) (but not by an
amount in excess of the aggregate unreimbursed Class A Investor Charge-Offs,
Class B Investor Charge-Offs and Class C Investor Charge-Offs, as the case may
be) on any Distribution Date by the sum of (a) Allocable Miscellaneous Payments
with respect to such Distribution Date and (b) the amount allocated and
available for that purpose pursuant to Section 4.6(a)(vii). The Servicer shall
be responsible for calculating Class A, Class B and Class C Investor Charge-Offs
and shall give the Trustee notice thereof by setting forth such amounts in the
Distribution Date Statement.
SECTION 4.10 Excess Servicing. The Servicer shall direct the Trustee to
apply (and the Trustee shall so apply), on each Distribution Date, Excess
Servicing for such Distribution Date to make the following distributions in the
following priority:
(a) an amount equal to the aggregate outstanding amounts of
the Monthly Servicing Fee which have been previously waived pursuant to
Section 3.1 shall be distributed to the Servicer; and
(b) the balance, if any, shall be distributed to the Seller.
SECTION 4.11 Excess Principal Collections.
"Series 2000-1 Excess Principal Collections", with respect to any
Distribution Date, shall mean an amount equal to the lesser of (a) the Series
2000-1 Principal Shortfall, if any, for such Distribution Date and (b) an amount
equal to the product of (x) excess principal collections for all Series for such
Distribution Date and (y) a fraction, the numerator of which is the Series
27
2000-1 Principal Shortfall for such Distribution Date and the denominator of
which is the aggregate amount of principal shortfalls for all Series for such
Distribution Date.
SECTION 4.12 Excess Funding Account. (a) Any funds on deposit in the
Excess Funding Account at the beginning of the Accumulation Period or upon the
occurrence of an Early Amortization Event shall be deposited in the Principal
Funding Account. In addition, no funds shall be deposited in the Excess Funding
Account during the Accumulation Period or any Early Amortization Period.
(b) If (i) on any Determination Date during the Revolving Period there
are any funds in the Excess Funding Account and (ii) the Unconcentrated Pool
Balance at the end of the preceding Collection Period is greater than the
Unconcentrated Pool Balance at the end of the second preceding Collection
Period, then, subject to the other provisions of this Section 4.12(b) and to
Sections 4.12(c) and (d), the Invested Amount and the invested amounts (but, in
each case, not in excess of the initial principal amount of such Series) for all
other outstanding Series that provide for an excess funding account or similar
arrangement and are in their revolving periods shall be increased such that,
after giving effect to such increases, the Required Participation Amount is at
least equal to the Unconcentrated Pool Balance. On such Determination Date, the
Servicer shall notify the Trustee of the amount, if any, of such increase in the
Invested Amount and the Trustee shall withdraw from the Excess Funding Account
and pay to the Seller or allocate to one or more other Series, on the
immediately succeeding Distribution Date, an amount equal to the amount of such
increase in the Invested Amount. To the extent that the Invested Amount is
increased by any payment to the Seller or any allocation to one or more other
Series, the Seller's Interest or such other Series' invested amount, as
applicable, shall be reduced by the amount of such payment. In addition, any
increase in the Invested Amount is subject to the condition that after giving
effect to such increase the Unconcentrated Pool Balance equals or exceeds the
Required Participation Amount. In connection with the foregoing, the Seller
shall endeavor (taking into account any seasonality experienced in the Accounts
in the Trust) to minimize the amounts on deposit, from time to time, in the
Excess Funding Account.
The Seller may elect to make withdrawals from the Excess Funding
Account and the excess funding accounts or similar arrangements for other Series
on a daily or weekly basis during a Collection Period by giving the Trustee
notice of such election at least two Business Days and no more than five
Business Days prior to the commencement of such daily or weekly withdrawals. If
such election is made, then deposits into the Excess Funding Account and excess
funding accounts or similar arrangements for other Series shall be made on a
similar basis for the related Collection Period. If such election is for
withdrawals on a daily basis, then such withdrawals shall be made on each
Business Day and the Unconcentrated Pool Balance to be referenced shall be the
Unconcentrated Pool Balance on the next preceding Business Day. If such election
is for withdrawals on a weekly basis, then such withdrawals shall be made on
each Wednesday (or if such Wednesday is not a Business Day, then on the Business
Day next succeeding such Wednesday) and the Unconcentrated Pool Balance to be
referenced shall be the Unconcentrated Pool Balance on the preceding Monday.
28
(c) In the event that other Series issued by the Trust provide for
excess funding accounts or other arrangements similar to the Excess Funding
Account involving fluctuating levels of investments in Principal Receivables,
(i) the allocation of additional Principal Receivables to increase the Invested
Amount and the invested amounts of such other Series (and the related
withdrawals from the Excess Funding Account and the other excess funding or
similar accounts) shall be based on the proportion that the amount on deposit in
the Excess Funding Account bears to amounts on deposit in the excess funding
accounts (including the Excess Funding Account) of all Series providing for
excess funding accounts or such similar arrangements or to amounts otherwise
similarly available and (ii) the deposit of amounts into the Excess Funding
Account and the excess funding accounts of such other Series shall be pro rata
based on the proportion that the Invested Amount bears to the invested amounts
(including the Invested Amount) of all Series providing for excess funding
accounts or such similar arrangements.
(d) In the event that any other Series is in an amortization period,
early amortization period or accumulation period, the amounts of any withdrawals
from the Excess Funding Account shall be applied first to satisfy in full any
then applicable funding or payment requirements of such Series and second to
make a payment to the Seller. In the event that more than one other Series is in
an amortization period, early amortization period or accumulation period, the
amounts of any withdrawals from the Excess Funding Account shall be allocated
(and, if necessary, reallocated) among such Series as specified in the related
Supplements for such Series, to meet the funding or payment requirements of each
such Series first to satisfy in full all then applicable funding or payment
requirements of each such Series and second to make a payment to the Seller.
SECTION 4.13 Yield Supplement Account. On each Distribution Date prior
to the beginning of the Accumulation Period and prior to the occurrence of an
Early Amortization Event, the Trustee shall deposit Non-Principal Collections
and Investment Proceeds, if any--to the extent available pursuant to Section
4.6(a)(x)--into the Yield Supplement Account in an amount equal to the Yield
Supplement Account Deposit Amount, if any, for that Distribution Date.
If the Class A Monthly Interest, Class B Monthly Interest or Class C
Monthly Interest for any Distribution Date, determined as if the interest rate
were based on LIBOR plus the applicable margin, exceeds the applicable monthly
interest determined on the basis of the related Net Receivables Rate, the
Servicer shall direct the Trustee to withdraw (and the Trustee shall withdraw)
funds from the Yield Supplement Account, to the extent available, and apply
those funds to deposit the amount of such excess into the Interest Funding
Account first, for the benefit of the Class A Certificates, second, for the
benefit of the Class B Certificates, and third, for the benefit of the Class C
Certificates.
Any funds on deposit in the Yield Supplement Account at the beginning
of the Accumulation Period or upon the occurrence of an Early Amortization Event
shall be deposited in the Principal Funding Account.
29
ARTICLE V
Distribution and Reports to
Series 2000-1 Certificateholders
SECTION 5.1 Distributions. (a) On each Distribution Date, the Trustee
as paying agent shall distribute to each Series 2000-1 Certificateholder of
record on the preceding Record Date (other than as provided in Section 12.2 of
the Agreement respecting a final distribution) such Series 2000-1
Certificateholder's pro rata share (based on the outstanding principal balances
of the Series 2000-1 Certificates held by such Certificateholder) of the amounts
on deposit in the Series 2000-1 Accounts as is payable to Series 2000-1
Certificateholders on such Distribution Date pursuant to and subject to the
applicable priorities set forth in Section 4.7.
(b) Except as provided in Section 12.2 of the Agreement with respect to
a final distribution, distributions to Series 2000-1 Certificateholders
hereunder shall be made by check mailed to each Series 2000-1 Certificateholder
at such Certificateholder's address appearing in the Certificate Register
without presentation or surrender of any Series 2000-1 Certificate or the making
of any notation thereon; provided, however, that with respect to Series 2000-1
Certificates registered in the name of a Depository, such distributions shall be
made to such Depository in immediately available funds.
For so long as any of the Series 2000-1 Certificates are listed on the
Luxembourg Stock Exchange, the Trustee shall notify the Luxembourg Stock
Exchange in the event that any of such Series 2000-1 Certificates listed on the
Luxembourg Stock Exchange do not receive scheduled distributions of interest or
principal on any Distribution Date in accordance with instructions from the
Servicer (which may be standing instructions).
SECTION 5.2 Reports and Statements to Series 2000-1 Certificateholders.
(a) At least two Business Days prior to each Distribution Date, the Servicer
shall provide to the Trustee, the Rating Agencies and, for so long as any Series
2000-1 Certificates are listed on the Luxembourg Stock Exchange, such exchange,
a statement substantially in the form of Exhibit B (a "Distribution Date
Statement"), and on each Distribution Date the Trustee shall forward to each
Series 2000-1 Certificateholder such statement prepared by the Servicer setting
forth certain information relating to the Trust and the Series 2000-1
Certificates.
(b) A copy of each statement provided pursuant to paragraph (a) and a
copy of the Pooling and Servicing Agreement (without exhibits) and this Series
Supplement shall be made available to Series 2000-1 Certificateholders of record
for inspection at the Corporate Trust Office during the Trustee's normal
business hours.
(c) On or before January 31 of each calendar year, beginning with
calendar year 2001, the Trustee shall furnish or cause to be furnished to each
Person who at any time during the preceding calendar year was a Series 2000-1
Certificateholder, a statement prepared by the Servicer containing the
information which is required to be contained in the statement to Series
30
2000-1 Certificateholders as set forth in paragraph (a) above, aggregated for
such calendar year or the applicable portion thereof during which such Person
was a Series 2000-1 Certificateholder, together with other information as is
required to be provided by an issuer of indebtedness under the Internal Revenue
Code for the preceding calendar year and such other customary information as is
necessary to enable the Series 2000-1 Certificateholders (or Certificate Owners)
to prepare their tax returns. Such obligation of the Trustee shall be deemed to
have been satisfied to the extent that substantially comparable information
shall be provided by the Trustee pursuant to any requirements of the Internal
Revenue Code as from time to time in effect.
ARTICLE VI
Early Amortization Events
SECTION 6.1 Additional Early Amortization Events. The occurrence of any
of the following events shall, immediately upon the occurrence thereof without
notice or other action on the part of the Trustee or the Series 2000-1
Certificateholders, be deemed to be an Early Amortization Event solely with
respect to Series 2000-1 (each, an "Additional Early Amortization Event"):
(a) on any Distribution Date, the balance of the Reserve Fund
is less than three and one-half percent (3.5%) of the aggregate
outstanding principal balance of the Series 2000-1 Certificates, in
each case after giving effect to all deposits, withdrawals and
distributions on such Distribution Date; or
(b) any Servicer Default occurs; or
(c) a Class A Carry-over Amount, Class B Carry-over Amount or
Class C Carry-over Amount is outstanding on six consecutive
Distribution Dates (after giving effect to the distributions on each of
those Distribution Dates); or
(d) on any Determination Date, the average of the Monthly
Payment Rates for the three preceding Collection Periods is less than
twenty-five percent (25%) (or a lower percentage if the Rating Agency
Condition has been satisfied with respect to that lower percentage); or
(e) the outstanding principal amount of the Series 2000-1
Certificates is not fully repaid on the Expected Final Payment Date; or
(f) the ratio (expressed as a percentage) of (i) the average
for each month of the net losses on the Receivables (exclusive of the
Ineligible Receivables) owned by the Trust (i.e., gross losses less
recoveries on any Receivables) (including recoveries from collateral
security in addition to recoveries from the products, recoveries from
Manufacturers and insurance proceeds) during any three consecutive
calendar months, to (ii) the average of the month-end aggregate
balances of those Receivables (without deducting therefrom the
31
Discount Portion) for such three-month period, exceeds five percent
(5%) on an annualized basis; provided, that the percentage in this
clause (f) may be changed, or any Early Amortization Event relating to
this clause (f) may be waived, at the direction of the Seller and
without the consent of any Series 2000-1 Certificateholder upon the
satisfaction of the Rating Agency Condition; or
(g) the sum of all Eligible Investments and amounts on deposit
in the Excess Funding Account and any excess funding accounts for any
other Series represents more than fifty percent (50%) of the total
assets of the Trust on each of six or more consecutive Determination
Dates, after giving effect to all payments made or to be made on the
Distribution Date next succeeding each such respective Determination
Date; or
(h) the Overconcentration Amount exceeds zero for a period of
five Business Days after any Distribution Date, unless the Rating
Agency Condition shall have been satisfied with respect to the
existence of the Overconcentration Amount.
ARTICLE VII
Optional Repurchase
SECTION 7.1 Optional Repurchase. (a) On any Distribution Date occurring
after the date on which the Invested Amount is reduced to less than ten percent
(10%) of the initial principal amount of the Series 2000-1 Certificates on the
Closing Date or less, the Seller shall have the option, subject to the condition
set forth in paragraph (c), to purchase the entire, but not less than the
entire, Series 2000-1 Certificateholders' Interest, at a purchase price equal to
the Reassignment Amount for such Distribution Date.
(b) The Seller shall give the Servicer and the Trustee at least 10
Business Days' prior written notice of the Distribution Date on which the Seller
intends to exercise such purchase option. Not later than 12:00 noon, New York
City time, on such Distribution Date the Seller shall deposit the Reassignment
Amount into the Collection Account in immediately available funds. Such purchase
option is subject to payment in full of the Reassignment Amount and if for any
reason the Seller fails to deposit the Reassignment Amount, payments shall
continue to be made to Certificateholders as provided herein. The Reassignment
Amount shall be distributed as set forth in Section 8.1(b).
(c) If at the time the Seller exercises its purchase option hereunder
the Seller's unsecured debt is unrated or has a rating lower than the lowest
investment grade rating of any Rating Agency, the Seller shall deliver to the
Trustee on such Distribution Date an Opinion of Counsel (which must be an
independent outside counsel) to the effect that, in reliance on certain
certificates to the effect that the Series 2000-1 Certificateholders' Interest
purchased by the Seller constitutes fair value for the consideration paid
therefor and as to the Seller is solvent, the purchase of the Series 2000-1
Certificateholders' Interest would not be considered a fraudulent conveyance
under applicable law.
32
So long as any Series 2000-1 Certificates are listed on the Luxembourg
Stock Exchange and the rules of such exchange so require, the Trustee shall
cause notice of any such optional repurchase under this Section to be published
in the Authorized European Newspaper at least one Business Day prior to the
related Distribution Date and shall cause notice to be given by first-class
mail, postage prepaid, mailed not less than ten Business Days prior to the
applicable repurchase date, to each Holder of Class A and Class B Certificates
at the Holder's address in the register maintained by the Trustee under the
Pooling and Servicing Agreement, and shall inform the Luxembourg Stock Exchange
thereof one Business Day prior thereto in accordance with instructions from the
Servicer (which may be standing instructions).
ARTICLE VIII
Final Distributions
SECTION 8.1 Sale of Certificateholders' Interest Pursuant to Section
2.3 of the Agreement; Distributions Pursuant to Section 7.1 of this Series
Supplement or Section 2.3 or 12.2(c) of the Agreement. (a) The amount to be paid
by the Seller to the Collection Account with respect to Series 2000-1 in
connection with a purchase of the Certificateholders' Interest pursuant to
Section 2.3 of the Agreement shall equal the Reassignment Amount for the
Distribution Date on which such repurchase occurs.
(b) With respect to the Reassignment Amount deposited into the
Collection Account pursuant to Section 7.1 or 8.1 of this Series Supplement or
Section 2.3 of the Agreement or any Termination Proceeds deposited into the
Collection Account pursuant to Section 12.2(c) of the Agreement, the Trustee
shall, not later than 12:00 noon, New York time, on the Distribution Date on
which such amounts are deposited (or, if such date is not a Distribution Date,
on the immediately following Distribution Date) (in the priority set forth
below): (i) first, deposit an amount equal to the Invested Amount on such
Distribution Date into the Principal Funding Account, (ii) second, deposit an
amount equal to the amount distributable on such Distribution Date pursuant to
Section 4.7(a)(i) into the Interest Funding Account and (iii) third, pay the
remainder of any Termination Proceeds to the Seller; provided, however, that the
sum of the amounts allocated pursuant to clauses (i) through (iii) shall not
exceed the Reassignment Amount for Series 2000-1.
(c) Notwithstanding anything to the contrary in this Series Supplement
or the Agreement, any Termination Proceeds deposited in the Principal Funding
Account and the Interest Funding Account pursuant to Section 8.1 of this Series
Supplement and all other amounts on deposit therein on the applicable
Distribution Date shall be distributed in full to the Series 2000-1
Certificateholders on such date in the following order of priority:
(i) first to Class A Certificateholders, in an amount equal to
the sum of (x) the Class A Monthly Interest for the current
Distribution Date and, without duplication, any unpaid Class A Monthly
Interest for any previous Distribution Date, (y) to the extent
permitted by applicable law, any Class A Additional Interest for the
current Distribution
33
Date and, without duplication, any unpaid Class A Additional Interest
for any previous Distribution Date, and (z) the Class A Invested
Amount;
(ii) second to Class B Certificateholders, in an amount equal
to the sum of (x) the Class B Monthly Interest for the current
Distribution Date and, without duplication, any unpaid Class B Monthly
Interest for any previous Distribution Date, (y) to the extent
permitted by applicable law, any Class B Additional Interest for the
current Distribution Date and, without duplication, any unpaid Class B
Additional Interest for any previous Distribution Date, and (z) the
Class B Invested Amount; and
(iii) third to Class C Certificateholders, in an amount equal
to the sum of (x) the Class C Monthly Interest for the current
Distribution Date and, without duplication, any unpaid Class C Monthly
Interest for any previous Distribution Date, (y) to the extent
permitted by applicable law, any Class C Additional Interest for the
current Distribution Date and, without duplication, any unpaid Class C
Additional Interest for any previous Distribution Date and (z) the
Class C Invested Amount.
No Class A Carry-over Amount, Class B Carry-over Amount, Class C
Carry-over Amount, Class A Carry-over Amount Additional Interest, Class B
Carry-over Amount Additional Interest or Class C Carry-over Amount Additional
Interest will be paid as part of this distribution.
Any remaining funds shall be paid to the Seller.
Any distribution made pursuant to paragraph (b) above and this
paragraph (c) shall be deemed to be a final distribution pursuant to Section
12.2 of the Agreement with respect to Series 2000-1.
SECTION 8.2 Distribution of Proceeds of Sale, Disposition or
Liquidation of the Receivables Pursuant to Section 9.2 of the Agreement. (a) Not
later than 12:00 noon, New York City time, on the Distribution Date following
the date on which the Insolvency Proceeds are deposited into the Collection
Account pursuant to Section 9.2(b) of the Agreement, the Trustee shall (after
giving effect to any deposits and distributions otherwise to be made on such
Distribution Date) (x) deduct an amount equal to the amount distributable on
such Distribution Date pursuant to Section 4.7(a)(ii) from the Series 2000-1
Allocation Percentage of the Insolvency Proceeds and deposit such amount in the
Principal Funding Account, (y) deduct an amount equal to the amount
distributable on such Distribution Date pursuant to Section 4.7(a)(i) from the
Series 2000-1 Allocation Percentage of the Insolvency Proceeds, and deposit such
amount in the Interest Funding Account, and (z) allocate the remainder of the
Series 2000-1 Allocation Percentage of the Insolvency Proceeds to the Seller's
Interest and release the same to the Seller on such Distribution Date.
(b) Notwithstanding anything to the contrary in this Series Supplement
or the Agreement, the entire amount deposited in the Principal Funding Account
and the Interest Funding Account pursuant to this Section and all other amounts
on deposit therein shall be distributed in full to the
34
Series 2000-1 Certificateholders in the order of priority set forth in Section
4.7 on the Distribution Date on which funds are deposited pursuant to this
Section 8.2 (or, if not so deposited on a Distribution Date, on the immediately
following Distribution Date) and any distribution made pursuant to this Section
8.2 shall be deemed to be a final distribution pursuant to Section 12.2 of the
Agreement with respect to Series 2000-1.
ARTICLE IX
Miscellaneous Provisions
SECTION 9.1 Securities Law Filings. The Seller shall cause the Class A
and Class B Certificates to be registered under the Securities Exchange Act of
1934, as amended, to the extent required to do so under applicable law.
SECTION 9.2 Ratification of Agreement. As supplemented by this Series
Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Series Supplement shall be read, taken and
construed as one and the same instrument.
SECTION 9.3 Counterparts. This Series Supplement may be executed in two
or more counterparts (and by different parties on separate counterparts), each
of which shall be an original, but all of which together shall constitute one
and the same instrument.
SECTION 9.4 Governing Law. This Series Supplement shall be governed by
and construed in accordance with the laws of the State of New York without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws.
SECTION 9.5 Limitation of Class C Certificates. Each purchaser of a
Class C Certificate (other than Deutsche FRLP) (each, the "Purchaser") hereby
represents and warrants to the Trustee and Deutsche FRLP, and hereby agrees with
the Trustee and Deutsche FRLP, and the Purchaser hereby acknowledges, as
follows:
(1) The Class C Certificates have not been and will not be
registered under the Securities Act or the securities laws of any
jurisdiction. Consequently, the Class C Certificates are not
transferable other than pursuant to an exemption from the registration
requirements of the Securities Act and satisfaction of certain
provisions of this Series Supplement.
(2) The Purchaser is a "qualified institutional buyer" ("QIB")
within the meaning of Rule 144A under the Securities Act ("Rule 144A")
and is purchasing for its own account (and not for the account of
others) or as a fiduciary or agent for others (which others also are
QIBs and have executed a letter substantially in the form of Exhibit C
to this Series Supplement and have delivered a copy of such letter to
Deutsche FRLP and the Trustee). The Purchaser is aware that it (or any
account for which it is
35
purchasing) may be required to bear the economic risk of an investment
in the Class C Certificates for an indefinite period, and it (or such
account) is able to bear such risk for an indefinite period.
(3) No sale, pledge or other transfer of any Class C
Certificate may be made by any Person unless (a) either (i) such sale,
pledge or other transfer is made to Deutsche FRLP, or (ii) so long as
the Class C Certificates are eligible for resale pursuant to Rule 144A
under the Securities Act, such sale, pledge or other transfer is made
to a Person whom the transferor reasonably believes after due inquiry
is a QIB acting for its own account (and not for the account of others)
or as a fiduciary or agent for others (which others also are QIBs) to
whom notice is given that the sale, pledge or transfer is being made in
reliance on Rule 144A.
(4) The Class C Certificates may not be acquired by or for the
account of (i) an "employee benefit plan" (as defined in section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), that is subject to the provisions of Title I of ERISA, (ii)
a plan described in Section 4975(e)(1) of the Code or (iii) any entity
whose underlying assets include plan assets by reason of a plan's
investment in the entity. By accepting and holding a Class C
Certificate, the holder thereof shall be deemed to have represented and
warranted that it is not within any of the categories described in the
preceding sentence.
(5) The Purchaser acknowledges that it has been afforded an
opportunity to request from Deutsche FRLP, the Servicer and Deutsche
Bank Securities Inc. (the "Initial Purchaser"), and has received and
reviewed, all information which it has deemed necessary in connection
with its decision to purchase the Class C Certificates. The Purchaser
acknowledges that none of Deutsche FRLP, the Servicer, the Initial
Purchaser nor any of their respective affiliates or any Person
representing any of them has made any representation to it with respect
to any information relating to the offering or sale of the Class C
Certificates, other than the information contained in the private
placement memorandum for the Class C Certificates, a copy of which has
been delivered to it.
(6) The Purchaser understands that all information furnished
to it by Deutsche FRLP, the Servicer or the Initial Purchaser or
representatives of Deutsche FRLP, the Servicer or the Initial Purchaser
in connection with its evaluation of an investment in the Class C
Certificates was provided to it on a confidential basis and it agrees
not to disclose such information, in whole or in part, to any other
Person.
(7) The Purchaser further represents and warrants to Deutsche
FRLP and the Trustee that the Purchaser (i) is properly classified as a
"corporation" as described in Section 7701(a)(3) of the Code which is
created or organized under the laws of the United States, any State
thereof or the District of Columbia, (ii) is not an S corporation as
described in Section 1361 of the Code and (iii) will not knowingly take
any action which will cause it not to be so classified.
36
(8) The Purchaser confirms that is has neither acquired nor
will it sell, trade or transfer any interest in any Class C Certificate
or cause an interest in any Class C Certificate to be marketed on or
through (i) an "established securities market" within the meaning of
Section 7704(b)(1) of the Code and any proposed, temporary or final
treasury regulation thereunder, including, without limitation, an
over-the-counter market or an interdealer quotation system that
regularly disseminates firm buy or sell quotations or (ii) "secondary
market" or "substantial equivalent thereof" within the meaning of
Section 7704(b)(2) of the Code and any proposed, temporary or final
treasury regulation thereunder, including a market wherein interests in
the Class C Certificates are regularly quoted by any person making a
market in those interests and a market wherein any person regularly
makes available bid or offer quotes with respect to interests in the
Class C Certificates and stands ready to effect buy or sell
transactions at the quoted prices for itself or on behalf of others.
Any purported transfer, assignment or other conveyance of any Class C
Certificate in contravention of the foregoing covenant will be null and
void ab initio and the purported transferor will continue to be treated
as the holder of such Class C Certificate and the purported transferee
will not be recognized as a Class C Certificateholder by Deutsche FRLP,
the Servicer or the Trustee.
(9) Notwithstanding the foregoing, at no time shall the
aggregate number of Private Holders exceed 100. Any purported transfer,
assignment or other conveyance (including any participation) of the
Class C Certificates in contravention of the immediately preceding
sentence will be null and void ab initio and the purported transferor
will continue to be treated as the holder of those Class C Certificates
and the purported transferee will not be recognized as a Class C
Certificateholder by Deutsche FRLP, the Servicer or the Trustee.
"Private Holder" means each holder of a right to receive interest or
principal in respect of any direct or indirect interest in the Trust,
including any financial instrument or contract the value of which is
determined in whole or part by reference to the Trust (including the
Trust's assets, income of the Trust or distributions made by the
Trust), excluding any interest in the Trust represented by any series
or class of certificates or any other interests as to which the Trustee
has received an opinion of counsel to the effect that that series,
class or other interest will be treated as debt or otherwise not as an
equity interest in either the Trust or the Receivables for federal
income tax purposes (unless that interest is convertible or
exchangeable into an interest in the Trust or the Trust's income or
that interest provides for payment of equivalent value).
Notwithstanding the immediately preceding sentence, "Private Holder"
will also include any other person that Deutsche FRLP determines is a
"partner" within the meaning of Section 1.7704-1(h)(1)(ii) of the U.S.
Treasury Regulations (including by reason of Section 1.7704-1(h)(3)) or
any successor provision of law. Any person holding more than one
interest in the Trust, each of which separately would cause that person
to be a Private Holder, will be treated as a single Private Holder.
Each holder of an interest in a Private Holder which is a partnership,
S corporation or a grantor trust under the Code will be treated as a
Private Holder unless excepted with the consent of Deutsche FRLP (which
consent will be based on an opinion of counsel generally to the effect
that the action taken pursuant to the consent will not cause the Trust
to become a publicly traded
37
partnership treated as a corporation). Notwithstanding anything to the
contrary herein, each Class C Certificateholder, and each holder of any
Class of any Series if with respect to such Class no opinion is
delivered to the effect that the Certificates of such Class will be
treated as debt for federal income tax purposes, will be considered to
be a Private Holder.
(10) The Class C Certificates will be issued in denominations
of $1,000,000 and integral multiples of $100,000 in excess thereof. No
Class C Certificate may be subdivided upon transfer or exchange in a
manner so that the resulting Class C Certificate if it had been sold in
the original offering would have had an initial offering price of less
than $1,000,000 and any purported transfer, assignment or conveyance of
a Class C Certificate in contravention of the immediately preceding
sentence will be void ab initio and the purported transferor will
continue to be treated as the owner of that Class C Certificate for all
purposes.
(11) Without limiting the foregoing, no transfer, pledge,
assignment or conveyance may be made to any one Person for Class C
Certificates with a face amount of less than $1,000,000 and, in the
case of any Person acting on behalf of one or more third parties (other
than a bank (as defined in Section 3(a)(2) of the Securities Act)
acting in its fiduciary capacity), for Class C Certificates with a face
amount of less than that amount for each of those third parties. Any
purported transfer, assignment or conveyance in contravention of the
immediately preceding sentence will be void ab initio and the purported
transferor will continue to be treated as the owner of the Class C
Certificates for all purposes. Neither Deutsche FRLP nor the Trustee
will be obligated to register the Class C Certificates under the
Securities Act, qualify the Class C Certificates under the securities
laws of any state or provide registration rights to any purchaser or
holder thereof.
(12) No transfer, assignment or conveyance of a Class C
Certificate will be effective unless Deutsche FRLP and the Trustee
shall have received a letter, substantially in the form of Exhibit C to
this Series Supplement, from the transferee, assignee or recipient of
the conveyance.
(13) The Class C Certificates will bear legends substantially
to the effect of the matters contemplated by paragraphs (1) through
(12) above, unless Deutsche FRLP determines otherwise in accordance
with applicable law.
SECTION 9.6 The Trustee; Paying Agent. (a) The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Series Supplement, for or in respect of the calculation or
verification of any of the amounts, allocation or distributions set forth in
Article IV and Article VIII or for or in respect of the recitals contained
herein, all of which recitals are made solely by the Seller.
38
(b) The Trustee is hereby directed to appoint Kredietbank S.A.
Luxembourgeoise in Luxembourg as a Paying Agent for the distribution of
principal of and interest on the Series 2000-1 Certificates; provided, that
unless Kredietbank S.A. Luxembourgeoise shall be rated "P-1" by Xxxxx'x and
"A-1" by S&P, it may not hold funds pursuant to this Series Supplement
overnight.
SECTION 9.7 Instructions in Writing. All instructions given by the
Servicer to the Trustee pursuant to this Series Supplement shall be in writing,
and may be included in a Distribution Date Statement.
SECTION 9.8 Initial Funding of Reserve Fund. On the Closing Date the
Seller shall cause to be deposited with the Trustee, and the Trustee shall
deposit in the Reserve Fund, available funds in an amount equal to three and
one-half percent (3.5%) of the aggregate initial principal balance of the Series
2000-1 Certificates.
SECTION 9.9 Severability; Certificate Rate Limitation. (a) If any one
or more of the covenants, agreements, provisions or terms of this Series
Supplement or any Series 2000-1 Certificate shall for any reason whatsoever be
held invalid, then such covenants, agreements, provisions or terms shall be
deemed severable from the remaining covenants, agreements, provisions or terms
of this Series Supplement and shall in no way affect the validity or
enforceability of the other provisions of this Series Supplement or of such
Series 2000-1 Certificate.
(b) Notwithstanding anything in this Series Supplement, the Agreement,
or any Series 2000-1 Certificate to the contrary, if at any time any Certificate
Rate, together with all fees, charges and other amounts which are treated as
interest on any Series 2000-1 Certificate under applicable law (collectively the
"Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which may
be contracted for, charged, taken, received or reserved by the Series 2000-1
Certificateholders in accordance with the terms of this Series Supplement, the
Agreement or any Series 2000-1 Certificate, then such Certificate Rate, together
with all Charges payable in respect of the Series 2000-1 Certificate, shall be
limited to the Maximum Rate and, to the extent lawful, such Certificate Rate and
Charges that would have been payable in respect of the Series 2000-1
Certificates, but were not payable as a result of the operation of this Section,
shall be cumulated and the Certificate Rate and Charges payable to the Series
2000-1 Certificateholders in respect of other periods shall be increased (but
not above the Maximum Rate therefor) until such cumulated amount shall have been
received by the Series 2000-1 Certificateholders.
SECTION 9.10 Headings. The headings herein are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.
SECTION 9.11 Certain Matters Relating to Luxembourg Stock Exchange
Listing. (a) So long as any Series 2000-1 Certificates are listed on the
Luxembourg Stock Exchange, on each Distribution Date the Trustee shall notify
the Luxembourg Stock Exchange of the outstanding
39
principal balance of each Class of such Series 2000-1 Certificates after giving
effect to distributions of principal, if any, thereon on such Distribution Date
in accordance with instructions from the Servicer (which may be standing
instructions).
(b) Promptly upon receipt of notice of any qualification, reduction or
withdrawal of the rating assigned to any Class of Certificates listed on the
Luxembourg Stock Exchange, the Trustee shall notify the Luxembourg Stock
Exchange thereof in accordance with instructions from the Servicer (which may be
standing instructions).
(c) Prior to listing on the Luxembourg Stock Exchange, a legal notice
("Notice Legale") relating to the issuance of the Certificates, together with
certain documents relating to the Seller and the Trust, shall be deposited by
the Trustee (at the written direction of the Seller or the Servicer) with the
Chief Registrar of the District of Luxembourg ("Greffier en Chef du Tribunal
d'Arrondissement de et a Luxembourg"), where copies thereof may be obtained,
free of charge, upon request.
As long as the Class A or Class B Certificates are outstanding, the
Servicer shall cause copies of the Pooling and Servicing Agreement and this
Agreement to be available for inspection and the Servicer's statement prepared
for each Distribution Date to be obtainable at the office of Kredietbank S.A.
Luxembourgeoise in the City of Luxembourg, where copies thereof may be obtained
upon request.
[SIGNATURES FOLLOW]
40
IN WITNESS WHEREOF, the Seller, the Servicer and the Trustee have
caused this Series Supplement to be duly executed as of the day and year first
above written.
DEUTSCHE FLOORPLAN RECEIVABLES, L.P.,
as Seller
By DEUTSCHE FLOORPLAN RECEIVABLES, INC.,
its general partner
By:____________________________________
Name: Xxxxxxx X. Xxxxxxxxxx
Title: President
By:____________________________________
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
DEUTSCHE FINANCIAL SERVICES CORPORATION,
as Servicer
By:____________________________________
Name: Xxxxxxx X. Xxxxxxxxxx
Title: Senior Vice President
By:____________________________________
Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President
S-1
THE CHASE MANHATTAN BANK,
as Trustee
By:____________________________________
Name:
Title:
S-2
EXHIBIT A
FORM OF CLASS [ ] CERTIFICATE
Initial
REGISTERED Principal Balance: */
$____________________
Certificate No. R-
CUSIP NO.
[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the issuer or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]
[FOR CLASS B CERTIFICATES, INSERT:
THIS CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF (I) AN "EMPLOYEE
BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED ("ERISA")), THAT IS SUBJECT TO THE PROVISIONS
OF TITLE I OF ERISA, (II) A PLAN DESCRIBED IN SECTION 4975(e)(1) OF THE CODE OR
(III) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A
PLAN'S INVESTMENT IN THE ENTITY. BY ACCEPTING AND HOLDING THIS CERTIFICATE, THE
HOLDER THEREOF SHALL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS NOT
WITHIN ANY OF THE CATEGORIES DESCRIBED IN THE PRECEDING SENTENCE.
[FOR CLASS C CERTIFICATES INSERT:
THE PURCHASER OF THIS CERTIFICATE (THE "PURCHASER") HEREBY REPRESENTS AND
WARRANTS TO THE TRUSTEE AND DEUTSCHE FRLP, AND HEREBY AGREES WITH THE TRUSTEE
AND DEUTSCHE FRLP, AND THE PURCHASER HEREBY ACKNOWLEDGES, AS FOLLOWS:
(1) THE CLASS C CERTIFICATES HAVE NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY
JURISDICTION. CONSEQUENTLY, THE CLASS C CERTIFICATES ARE NOT
TRANSFERABLE OTHER THAN PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND SATISFACTION OF CERTAIN
PROVISIONS OF THE SERIES SUPPLEMENT.
--------
*/ Denominations of $1,000 and integral multiples of $1,000 in excess thereof.
(2) THE PURCHASER IS A "QUALIFIED INSTITUTIONAL BUYER" ("QIB")
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT ("RULE 144A")
AND IS PURCHASING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
QIBS AND HAVE EXECUTED A LETTER SUBSTANTIALLY IN THE FORM OF EXHIBIT C
TO THE SERIES SUPPLEMENT AND HAVE DELIVERED A COPY OF SUCH LETTER TO
DEUTSCHE FRLP AND THE TRUSTEE). THE PURCHASER IS AWARE THAT IT (OR ANY
ACCOUNT FOR WHICH IT IS PURCHASING) MAY BE REQUIRED TO BEAR THE
ECONOMIC RISK OF AN INVESTMENT IN THE CLASS C CERTIFICATES FOR AN
INDEFINITE PERIOD, AND IT (OR SUCH ACCOUNT) IS ABLE TO BEAR SUCH RISK
FOR AN INDEFINITE PERIOD.
(3) NO SALE, PLEDGE OR OTHER TRANSFER OF ANY CLASS C
CERTIFICATE MAY BE MADE BY ANY PERSON UNLESS (A) EITHER (I) SUCH SALE,
PLEDGE OR OTHER TRANSFER IS MADE TO DEUTSCHE FRLP, OR (II) SO LONG AS
THE CLASS C CERTIFICATES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT, SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE
TO A PERSON WHOM THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY
IS A QIB ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS)
OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QIBS) TO
WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A.
(4) THE CLASS C CERTIFICATES MAY NOT BE ACQUIRED BY OR FOR THE
ACCOUNT OF (I) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3)
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")), THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II)
A PLAN DESCRIBED IN SECTION 4975(e)(1) OF THE CODE OR (III) ANY ENTITY
WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S
INVESTMENT IN THE ENTITY. BY ACCEPTING AND HOLDING A CLASS C
CERTIFICATE, THE HOLDER THEREOF SHALL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT IT IS NOT WITHIN ANY OF THE CATEGORIES DESCRIBED IN THE
PRECEDING SENTENCE.
(5) THE PURCHASER ACKNOWLEDGES THAT IT HAS BEEN AFFORDED AN
OPPORTUNITY TO REQUEST FROM DEUTSCHE FRLP, THE SERVICER AND DEUTSCHE
BANK SECURITIES INC. (THE "INITIAL PURCHASER"), AND HAS RECEIVED AND
REVIEWED, ALL INFORMATION WHICH IT HAS DEEMED NECESSARY IN CONNECTION
WITH ITS DECISION TO PURCHASE THE CLASS C CERTIFICATES. THE PURCHASER
ACKNOWLEDGES THAT NONE OF DEUTSCHE FRLP, THE SERVICER, THE INITIAL
PURCHASER NOR ANY OF THEIR RESPECTIVE AFFILIATES OR ANY PERSON
REPRESENTING ANY OF THEM HAS
2
MADE ANY REPRESENTATION TO IT WITH RESPECT TO ANY INFORMATION RELATING
TO THE OFFERING OR SALE OF THE CLASS C CERTIFICATES, OTHER THAN THE
INFORMATION CONTAINED IN THE PRIVATE PLACEMENT MEMORANDUM FOR THE CLASS
C CERTIFICATES, A COPY OF WHICH HAS BEEN DELIVERED TO IT.
(6) THE PURCHASER UNDERSTANDS THAT ALL INFORMATION FURNISHED
TO IT BY DEUTSCHE FRLP, THE SERVICER OR THE INITIAL PURCHASER OR
REPRESENTATIVES OF DEUTSCHE FRLP, THE SERVICER OR THE INITIAL PURCHASER
IN CONNECTION WITH ITS EVALUATION OF AN INVESTMENT IN THE CLASS C
CERTIFICATES WAS PROVIDED TO IT ON A CONFIDENTIAL BASIS AND IT AGREES
NOT TO DISCLOSE SUCH INFORMATION, IN WHOLE OR IN PART, TO ANY OTHER
PERSON.
(7) THE PURCHASER FURTHER REPRESENTS AND WARRANTS TO DEUTSCHE
FRLP AND THE TRUSTEE THAT THE PURCHASER (I) IS PROPERLY CLASSIFIED AS A
"CORPORATION" AS DESCRIBED IN SECTION 7701(a)(3) OF THE CODE WHICH IS
CREATED OR ORGANIZED UNDER THE LAWS OF THE UNITED STATES, ANY STATE
THEREOF OR THE DISTRICT OF COLUMBIA, (II) IS NOT AN S CORPORATION AS
DESCRIBED IN SECTION 1361 OF THE CODE AND (III) WILL NOT KNOWINGLY TAKE
ANY ACTION WHICH WILL CAUSE IT NOT TO BE SO CLASSIFIED.
(8) THE PURCHASER CONFIRMS THAT IS HAS NEITHER ACQUIRED NOR
WILL IT SELL, TRADE OR TRANSFER ANY INTEREST IN ANY CLASS C CERTIFICATE
OR CAUSE AN INTEREST IN ANY CLASS C CERTIFICATE TO BE MARKETED ON OR
THROUGH (I) AN "ESTABLISHED SECURITIES MARKET" WITHIN THE MEANING OF
SECTION 7704(b)(1) OF THE CODE AND ANY PROPOSED, TEMPORARY OR FINAL
TREASURY REGULATION THEREUNDER, INCLUDING, WITHOUT LIMITATION, AN
OVER-THE-COUNTER MARKET OR AN INTERDEALER QUOTATION SYSTEM THAT
REGULARLY DISSEMINATES FIRM BUY OR SELL QUOTATIONS OR (II) "SECONDARY
MARKET" OR "SUBSTANTIAL EQUIVALENT THEREOF" WITHIN THE MEANING OF
SECTION 7704(b)(2) OF THE CODE AND ANY PROPOSED, TEMPORARY OR FINAL
TREASURY REGULATION THEREUNDER, INCLUDING A MARKET WHEREIN INTERESTS IN
THE CLASS C CERTIFICATES ARE REGULARLY QUOTED BY ANY PERSON MAKING A
MARKET IN THOSE INTERESTS AND A MARKET WHEREIN ANY PERSON REGULARLY
MAKES AVAILABLE BID OR OFFER QUOTES WITH RESPECT TO INTERESTS IN THE
CLASS C CERTIFICATES AND STANDS READY TO EFFECT BUY OR SELL
TRANSACTIONS AT THE QUOTED PRICES FOR ITSELF OR ON BEHALF OF OTHERS.
ANY PURPORTED TRANSFER, ASSIGNMENT OR OTHER CONVEYANCE OF ANY CLASS C
CERTIFICATE IN CONTRAVENTION OF THE FOREGOING COVENANT WILL BE NULL AND
VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED
AS THE HOLDER
3
OF SUCH CLASS C CERTIFICATE AND THE PURPORTED TRANSFEREE WILL NOT BE
RECOGNIZED AS A CLASS C CERTIFICATEHOLDER BY DEUTSCHE FRLP, THE
SERVICER OR THE TRUSTEE.
(9) NOTWITHSTANDING THE FOREGOING, AT NO TIME SHALL THE
AGGREGATE NUMBER OF PRIVATE HOLDERS EXCEED 100. ANY PURPORTED TRANSFER,
ASSIGNMENT OR OTHER CONVEYANCE (INCLUDING ANY PARTICIPATION) OF THE
CLASS C CERTIFICATES IN CONTRAVENTION OF THE IMMEDIATELY PRECEDING
SENTENCE WILL BE NULL AND VOID AB INITIO AND THE PURPORTED TRANSFEROR
WILL CONTINUE TO BE TREATED AS THE HOLDER OF THOSE CLASS C CERTIFICATES
AND THE PURPORTED TRANSFEREE WILL NOT BE RECOGNIZED AS A CLASS C
CERTIFICATEHOLDER BY DEUTSCHE FRLP, THE SERVICER OR THE TRUSTEE.
"PRIVATE HOLDER" MEANS EACH HOLDER OF A RIGHT TO RECEIVE INTEREST OR
PRINCIPAL IN RESPECT OF ANY DIRECT OR INDIRECT INTEREST IN THE TRUST,
INCLUDING ANY FINANCIAL INSTRUMENT OR CONTRACT THE VALUE OF WHICH IS
DETERMINED IN WHOLE OR PART BY REFERENCE TO THE TRUST (INCLUDING THE
TRUST'S ASSETS, INCOME OF THE TRUST OR DISTRIBUTIONS MADE BY THE
TRUST), EXCLUDING ANY INTEREST IN THE TRUST REPRESENTED BY ANY SERIES
OR CLASS OF CERTIFICATES OR ANY OTHER INTERESTS AS TO WHICH THE TRUSTEE
HAS RECEIVED AN OPINION OF COUNSEL TO THE EFFECT THAT THAT SERIES,
CLASS OR OTHER INTEREST WILL BE TREATED AS DEBT OR OTHERWISE NOT AS AN
EQUITY INTEREST IN EITHER THE TRUST OR THE RECEIVABLES FOR FEDERAL
INCOME TAX PURPOSES (UNLESS THAT INTEREST IS CONVERTIBLE OR
EXCHANGEABLE INTO AN INTEREST IN THE TRUST OR THE TRUST'S INCOME OR
THAT INTEREST PROVIDES FOR PAYMENT OF EQUIVALENT VALUE).
NOTWITHSTANDING THE IMMEDIATELY PRECEDING SENTENCE, "PRIVATE HOLDER"
WILL ALSO INCLUDE ANY OTHER PERSON THAT DEUTSCHE FRLP DETERMINES IS A
"PARTNER" WITHIN THE MEANING OF SECTION 1.7704-1(h)(1)(ii) OF THE U.S.
TREASURY REGULATIONS (INCLUDING BY REASON OF SECTION 1.7704-1(h)(3)) OR
ANY SUCCESSOR PROVISION OF LAW. ANY PERSON HOLDING MORE THAN ONE
INTEREST IN THE TRUST, EACH OF WHICH SEPARATELY WOULD CAUSE THAT PERSON
TO BE A PRIVATE HOLDER, WILL BE TREATED AS A SINGLE PRIVATE HOLDER.
EACH HOLDER OF AN INTEREST IN A PRIVATE HOLDER WHICH IS A PARTNERSHIP,
S CORPORATION OR A GRANTOR TRUST UNDER THE CODE WILL BE TREATED AS A
PRIVATE HOLDER UNLESS EXCEPTED WITH THE CONSENT OF DEUTSCHE FRLP (WHICH
CONSENT WILL BE BASED ON AN OPINION OF COUNSEL GENERALLY TO THE EFFECT
THAT THE ACTION TAKEN PURSUANT TO THE CONSENT WILL NOT CAUSE THE TRUST
TO BECOME A PUBLICLY TRADED PARTNERSHIP TREATED AS A CORPORATION).
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, EACH CLASS C
CERTIFICATEHOLDER, AND EACH HOLDER OF ANY CLASS OF ANY SERIES IF WITH
RESPECT TO SUCH CLASS NO OPINION IS DELIVERED TO THE EFFECT
4
THAT THE CERTIFICATES OF SUCH CLASS WILL BE TREATED AS DEBT FOR FEDERAL
INCOME TAX PURPOSES, WILL BE CONSIDERED TO BE A PRIVATE HOLDER.
(10) THE CLASS C CERTIFICATES WILL BE ISSUED IN DENOMINATIONS
OF $1,000,000 AND INTEGRAL MULTIPLES OF $100,000 IN EXCESS THEREOF. NO
CLASS C CERTIFICATE MAY BE SUBDIVIDED UPON TRANSFER OR EXCHANGE IN A
MANNER SO THAT THE RESULTING CLASS C CERTIFICATE IF IT HAD BEEN SOLD IN
THE ORIGINAL OFFERING WOULD HAVE HAD AN INITIAL OFFERING PRICE OF LESS
THAN $1,000,000 AND ANY PURPORTED TRANSFER, ASSIGNMENT OR CONVEYANCE OF
A CLASS C CERTIFICATE IN CONTRAVENTION OF THE IMMEDIATELY PRECEDING
SENTENCE WILL BE VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL
CONTINUE TO BE TREATED AS THE OWNER OF THAT CLASS C CERTIFICATE FOR ALL
PURPOSES.
(11) WITHOUT LIMITING THE FOREGOING, NO TRANSFER, PLEDGE,
ASSIGNMENT OR CONVEYANCE MAY BE MADE TO ANY ONE PERSON FOR CLASS C
CERTIFICATES WITH A FACE AMOUNT OF LESS THAN $1,000,000 AND, IN THE
CASE OF ANY PERSON ACTING ON BEHALF OF ONE OR MORE THIRD PARTIES (OTHER
THAN A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE SECURITIES ACT)
ACTING IN ITS FIDUCIARY CAPACITY), FOR CLASS C CERTIFICATES WITH A FACE
AMOUNT OF LESS THAN THAT AMOUNT FOR EACH OF THOSE THIRD PARTIES. ANY
PURPORTED TRANSFER, ASSIGNMENT OR CONVEYANCE IN CONTRAVENTION OF THE
IMMEDIATELY PRECEDING SENTENCE WILL BE VOID AB INITIO AND THE PURPORTED
TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THE CLASS C
CERTIFICATES FOR ALL PURPOSES. NEITHER DEUTSCHE FRLP NOR THE TRUSTEE
WILL BE OBLIGATED TO REGISTER THE CLASS C CERTIFICATES UNDER THE
SECURITIES ACT, QUALIFY THE CLASS C CERTIFICATES UNDER THE SECURITIES
LAWS OF ANY STATE OR PROVIDE REGISTRATION RIGHTS TO ANY PURCHASER OR
HOLDER THEREOF.
(12) NO TRANSFER, ASSIGNMENT OR CONVEYANCE OF A CLASS C
CERTIFICATE WILL BE EFFECTIVE UNLESS DEUTSCHE FRLP AND THE TRUSTEE
SHALL HAVE RECEIVED A LETTER, SUBSTANTIALLY IN THE FORM OF EXHIBIT C TO
THE SERIES SUPPLEMENT, FROM THE TRANSFEREE, ASSIGNEE OR RECIPIENT OF
THE CONVEYANCE.]
5
$___________ FLOATING RATE ASSET BACKED CERTIFICATES,
SERIES 2000-1, CLASS [ ]
evidencing a fractional undivided interest in certain
assets of the
DISTRIBUTION FINANCIAL SERVICES FLOORPLAN MASTER TRUST.
This certificate ("Certificate") does not represent any interest in, or
obligation of, Deutsche Floorplan Receivables, L.P. ("Deutsche FRLP" or the
"Seller"), Deutsche Financial Services Corporation ("DFS"), Deutsche Bank AG or
any affiliate thereof.
This certifies that [ ] (the "Class [ ] Certificateholder"), is the
registered owner of a fractional undivided interest in assets of the
Distribution Financial Services Floorplan Master Trust (the "Trust") created
pursuant to an Amended and Restated Pooling and Servicing Agreement (the "P&S"),
dated as of April 1, 2000, as supplemented by the Series 2000-1 Supplement dated
as of April 1, 2000 (the "Series 2000-1 Supplement" or the "Series Supplement"),
among Deutsche FRLP, as Seller, DFS, as Servicer, and The Chase Manhattan Bank,
as trustee (the "Trustee"). The P&S and the Series 2000-1 Supplement are
collectively referred to herein as the "Pooling and Servicing Agreement."
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling and Servicing Agreement or be valid
for any purpose.
THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
This Certificate is issued under and is subject to the terms,
provisions and conditions of the Pooling and Servicing Agreement to which, as
amended and supplemented from time to time, the Certificateholder by virtue of
the acceptance hereof assents and is bound. Although a summary of certain
provisions of the Pooling and Servicing Agreement is set forth herein, this
Certificate does not purport to summarize the Pooling and Servicing Agreement
and reference is made to the Pooling and Servicing Agreement for information
with respect to the interests, rights, benefits, obligations, proceeds and
duties evidenced hereby and the rights, duties and obligations of the Trustee.
In the event of any conflict or inconsistency between this Certificate and the
Pooling and Servicing Agreement, the Pooling and Servicing Agreement shall
control in all respects. To the extent not defined herein, the capitalized terms
used herein have the meanings ascribed to them in the Pooling and Servicing
Agreement.
6
The Seller has entered into the Pooling and Servicing Agreement and the
Series 2000-1 Certificates have been (or shall be) issued with the intention
that the Series 2000-1 Certificates shall qualify as indebtedness of Deutsche
FRLP secured by the Receivables for Federal income taxes, state and local
income, single business and franchise taxes (imposed on or measured by income)
and any other taxes imposed on or measured by income. The Seller, each
Beneficiary and each Certificateholder and Certificate Owner, by the acceptance
of its Certificate or Book-Entry Certificate, as applicable, agrees to treat
such Series 2000-1 Certificate as indebtedness of the Seller secured by the
Receivables for Federal income taxes, state and local income, single business
and franchise taxes (imposed on or measured by income) and any other taxes
imposed on or measured by income.
[FOR CLASS B AND CLASS C CERTIFICATES, INSERT: THIS CERTIFICATE IS
SUBORDINATE TO THE CLASS A [AND CLASS B] CERTIFICATES IN ACCORDANCE
WITH THE SERIES SUPPLEMENT].
7
IN WITNESS WHEREOF, the Seller has caused this Certificate to be duly
executed.
DEUTSCHE FLOORPLAN RECEIVABLES, L.P.
By: DEUTSCHE FLOORPLAN RECEIVABLES,
INC., its general partner
By:___________________________________
Name:
Title:
By:___________________________________
Name:
Title:
Dated:
S-1
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.
THE CHASE MANHATTAN BANK,
as Trustee
By:___________________________________
Authorized Officer
Dated:
S-2
ASSIGNMENT
Social Security or other identifying number of assignee
_________________
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto _____________________________________________
(name and address of assignee)
the within certificate and all rights thereunder, and hereby irrevocably
constitutes and appoints ________________________, attorney, to transfer
said certificate on the books kept for registration thereof, with full
power of substitution in the premises.
Dated:_______________________ _______________________________*
Signature Guaranteed:
----------
(*) NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the within Certificate in every particular,
without alteration, enlargement or any change whatsoever.
S-3
EXHIBIT B
DISTRIBUTION DATE STATEMENT
(a) The aggregate amount of Collections, the aggregate amount of
Non-Principal Collections and the aggregate amount of Principal Collections
processed during the immediately preceding Collection Period, and the Pool
Balance as of the end of such Collection Period;
(b) The Floating Allocation Percentage, the Principal Allocation Percentage
and the Series 2000-1 Allocation Percentage relating to such Collection Period;
(c) The total amount, if any, distributed on the Series 2000-1
Certificates;
(d) The amount of such distribution allocable to principal on the Class A
Certificates, the Class B Certificates and the Class C Certificates;
(e) The amount of such distribution allocable to interest on the Class A
Certificates, the Class B Certificates and the Class C Certificates;
(f) The Investor Default Amount for the applicable Distribution Date;
(g) The Deficiency Amount, if any, for the preceding Collection Period;
(h) The amount of the Class A, Class B and Class C Investor Charge-Offs and
the amounts of reimbursements thereof for the preceding Collection Period;
(i) The amount of the Monthly Servicing Fee for the preceding Collection
Period;
(j) The Class A Invested Amount, the Class B Invested Amount, the Class C
Invested Amount, the Excess Funding Account balance and the outstanding
principal balance of the Class A, Class B and Class C Certificates for such
Distribution Date (after giving effect to all distributions which shall occur on
such Distribution Date);
(k) The Controlled Deposit Amount, if any;
(l) The Class A Pool Factor, Class B Pool Factor and Class C Pool Factor;
(m) LIBOR and the applicable Net Receivables Rate for the next Interest
Period;
(n) The Reserve Fund balance with respect to the current Determination
Date;
1
(o) The Principal Funding Account balance, the Interest Funding Account
balance, he Yield Supplement Account balance and the Collection Account balance
with respect to the current Distribution Date;
(p) The Servicer Advance, if any, for the current Distribution Date and
reimbursement of any Servicer Advance;
(q) Any elective or "deemed" waiver of the Monthly Servicing Fee for the
current Distribution Date;
(r) If a Dealer Overconcentration exists, (i) the Unconcentrated Pool
Balance, (ii) the aggregate amount of such Dealer Overconcentration, (iii) the
applicable Unconcentrated Percentage and Overconcentrated Percentage, and (iv)
the portion of Collections, Miscellaneous Payments and the Defaulted Amount
allocated to the Dealer Overconcentration Series and other Series;
(s) the Class A Monthly Interest;
(t) the Class B Monthly Interest;
(u) the Class C Monthly Interest;
(v) the Class A Additional Interest;
(w) the Class B Additional Interest;
(x) the Class C Additional Interest;
(y) the Certificateholders' Monthly Servicing Fee;
(z) the Reserve Fund Deposit Amount;
(aa) the Investor Default Amount;
(bb) the Class A Carry-over Amount;
(cc) the Class B Carry-over Amount;
(dd) the Class C Carry-over Amount;
(ee) the Yield Supplement Account Deposit Amount;
(ff) the amount calculated pursuant to Section 4.6(b);
2
(gg) the amount calculated pursuant to Section 4.7(a)(i);
(hh) the amount calculated pursuant to Section 4.8;
(ii) the amount calculated pursuant to Section 4.10; and
(jj) Miscellaneous Payments, including Adjustment Payments, Transfer
Deposit Amounts and Unallocated Principal Collections.
3
EXHIBIT C
FORM OF REPRESENTATION LETTER
, 2000
--------------------
The Chase Manhattan Bank, as Trustee
000 Xxxx 00xx Xx., 00xx Xxxxx
Xxx Xxxx, XX 00000
Deutsche Floorplan Receivables, L.P.
000 Xxxxxxxxx Xxxxxx Xxxxx
Xx. Xxxxx, XX 00000
Re: Distribution Financial Services
Floorplan Master Trust, Series 2000-1, Class C Certificates
Ladies and Gentlemen:
This letter is being delivered by the undersigned (the "Purchaser")
pursuant to Section 9.5 of the Series 2000-1 Supplement dated as of April 1,
2000 (as amended, amended and restated or otherwise modified from time to time,
the "Supplement") among Deutsche Floorplan Receivables, L.P., as Seller
("Deutsche FRLP"), Deutsche Financial Services Corporation, as Servicer, and The
Chase Manhattan Bank, as Trustee, in connection with the Purchaser's acquisition
of a Class C Certificate. Capitalized terms defined in (or by reference in) the
Supplement and used herein without definition shall have the meanings defined in
(or by reference in) the Supplement. The Purchaser hereby represents and
warrants to the Trustee and Deutsche FRLP, and hereby agrees with the Trustee
and Deutsche FRLP, and the Purchaser hereby acknowledges, as follows:
(1) The Class C Certificates have not been and will not be
registered under the Securities Act or the securities laws of any
jurisdiction. Consequently, the Class C Certificates are not
transferable other than pursuant to an exemption from the registration
requirements of the Securities Act and satisfaction of certain
provisions of the Supplement.
(2) The Purchaser is a "qualified institutional buyer" ("QIB")
within the meaning of Rule 144A under the Securities Act ("Rule 144A")
and is purchasing for its own account (and not for the account of
others) or as a fiduciary or agent for others
1
(which others also are QIBs and have executed a letter substantially in
the form of this letter and have delivered a copy of such letter to
Deutsche FRLP and the Trustee). The Purchaser is aware that it (or any
account for which it is purchasing) may be required to bear the
economic risk of an investment in the Class C Certificates for an
indefinite period, and it (or such account) is able to bear such risk
for an indefinite period.
(3) No sale, pledge or other transfer of any Class C
Certificate may be made by any Person unless (a) either (i) such sale,
pledge or other transfer is made to Deutsche FRLP, or (ii) so long as
the Class C Certificates are eligible for resale pursuant to Rule 144A
under the Securities Act, such sale, pledge or other transfer is made
to a Person whom the transferor reasonably believes after due inquiry
is a QIB acting for its own account (and not for the account of others)
or as a fiduciary or agent for others (which others also are QIBs) to
whom notice is given that the sale, pledge or transfer is being made in
reliance on Rule 144A.
(4) The Class C Certificates may not be acquired by or for the
account of (i) an "employee benefit plan" (as defined in section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), that is subject to the provisions of Title I of ERISA, (ii)
a plan described in Section 4975(e)(1) of the Code or (iii) any entity
whose underlying assets include plan assets by reason of a plan's
investment in the entity. By accepting and holding a Class C
Certificate, the holder thereof shall be deemed to have represented and
warranted that it is not within any of the categories described in the
preceding sentence.
(5) The Purchaser acknowledges that it has been afforded an
opportunity to request from Deutsche FRLP, the Servicer and Deutsche
Bank Securities Inc. (the "Initial Purchaser"), and has received and
reviewed, all information which it has deemed necessary in connection
with its decision to purchase the Class C Certificates. The Purchaser
acknowledges that none of Deutsche FRLP, the Servicer, the Initial
Purchaser nor any of their respective affiliates or any Person
representing any of them has made any representation to it with respect
to any information relating to the offering or sale of the Class C
Certificates, other than the information contained in the private
placement memorandum for the Class C Certificates, a copy of which has
been delivered to it.
(6) The Purchaser understands that all information furnished
to it by Deutsche FRLP, the Servicer or the Initial Purchaser or
representatives of Deutsche FRLP, the Servicer or the Initial Purchaser
in connection with its evaluation of an investment in the Class C
Certificates was provided to it on a confidential basis and it agrees
not to disclose such information, in whole or in part, to any other
Person.
(7) The Purchaser further represents and warrants to Deutsche
FRLP and the Trustee that the Purchaser (i) is properly classified as a
"corporation" as described in
2
Section 7701(a)(3) of the Code which is created or organized under the
laws of the United States, any State thereof or the District of
Columbia, (ii) is not an S corporation as described in Section 1361 of
the Code and (iii) will not knowingly take any action which will cause
it not to be so classified.
(8) The Purchaser confirms that is has neither acquired nor
will it sell, trade or transfer any interest in any Class C Certificate
or cause an interest in any Class C Certificate to be marketed on or
through (i) an "established securities market" within the meaning of
Section 7704(b)(1) of the Code and any proposed, temporary or final
treasury regulation thereunder, including, without limitation, an
over-the-counter market or an interdealer quotation system that
regularly disseminates firm buy or sell quotations or (ii) "secondary
market" or "substantial equivalent thereof" within the meaning of
Section 7704(b)(2) of the Code and any proposed, temporary or final
treasury regulation thereunder, including a market wherein interests in
the Class C Certificates are regularly quoted by any person making a
market in those interests and a market wherein any person regularly
makes available bid or offer quotes with respect to interests in the
Class C Certificates and stands ready to effect buy or sell
transactions at the quoted prices for itself or on behalf of others.
Any purported transfer, assignment or other conveyance of any Class C
Certificate in contravention of the foregoing covenant will be null and
void ab initio and the purported transferor will continue to be treated
as the holder of such Class C Certificate and the purported transferee
will not be recognized as a Class C Certificateholder by Deutsche FRLP,
the Servicer or the Trustee.
(9) Notwithstanding the foregoing, at no time shall the
aggregate number of Private Holders exceed 100. Any purported transfer,
assignment or other conveyance (including any participation) of the
Class C Certificates in contravention of the immediately preceding
sentence will be null and void ab initio and the purported transferor
will continue to be treated as the holder of those Class C Certificates
and the purported transferee will not be recognized as a Class C
Certificateholder by Deutsche FRLP, the Servicer or the Trustee.
"Private Holder" means each holder of a right to receive interest or
principal in respect of any direct or indirect interest in the Trust,
including any financial instrument or contract the value of which is
determined in whole or part by reference to the Trust (including the
Trust's assets, income of the Trust or distributions made by the
Trust), excluding any interest in the Trust represented by any series
or class of certificates or any other interests as to which the Trustee
has received an opinion of counsel to the effect that that series,
class or other interest will be treated as debt or otherwise not as an
equity interest in either the Trust or the Receivables for federal
income tax purposes (unless that interest is convertible or
exchangeable into an interest in the Trust or the Trust's income or
that interest provides for payment of equivalent value).
Notwithstanding the immediately preceding sentence, "Private Holder"
will also include any other person that Deutsche FRLP determines is a
"partner" within the meaning of Section 1.7704-1(h)(1)(ii) of the U.S.
Treasury Regulations (including by reason of Section 1.7704-1(h)(3)) or
any successor
3
provision of law. Any person holding more than one interest in the
Trust, each of which separately would cause that person to be a Private
Holder, will be treated as a single Private Holder. Each holder of an
interest in a Private Holder which is a partnership, S corporation or a
grantor trust under the Code will be treated as a Private Holder unless
excepted with the consent of Deutsche FRLP (which consent will be based
on an opinion of counsel generally to the effect that the action taken
pursuant to the consent will not cause the Trust to become a publicly
traded partnership treated as a corporation). Notwithstanding anything
to the contrary herein, each Class C Certificateholder, and each holder
of any Class of any Series if with respect to such Class no opinion is
delivered to the effect that the Certificates of such Class will be
treated as debt for federal income tax purposes, will be considered to
be a Private Holder.
(10) The Class C Certificates will be issued in denominations
of $1,000,000 and integral multiples of $100,000 in excess thereof. No
Class C Certificate may be subdivided upon transfer or exchange in a
manner so that the resulting Class C Certificate if it had been sold in
the original offering would have had an initial offering price of less
than $1,000,000 and any purported transfer, assignment or conveyance of
a Class C Certificate in contravention of the immediately preceding
sentence will be void ab initio and the purported transferor will
continue to be treated as the owner of that Class C Certificate for all
purposes.
(11) Without limiting the foregoing, no transfer, pledge,
assignment or conveyance may be made to any one Person for Class C
Certificates with a face amount of less than $1,000,000 and, in the
case of any Person acting on behalf of one or more third parties (other
than a bank (as defined in Section 3(a)(2) of the Securities Act)
acting in its fiduciary capacity), for Class C Certificates with a face
amount of less than that amount for each of those third parties. Any
purported transfer, assignment or conveyance in contravention of the
immediately preceding sentence will be void ab initio and the purported
transferor will continue to be treated as the owner of the Class C
Certificates for all purposes. Neither Deutsche FRLP nor the Trustee
will be obligated to register the Class C Certificates under the
Securities Act, qualify the Class C Certificates under the securities
laws of any state or provide registration rights to any purchaser or
holder thereof.
(12) No transfer, assignment or conveyance of a Class C
Certificate will be effective unless Deutsche FRLP and the Trustee
shall have received a letter, substantially in the form of this letter,
from the transferee, assignee or recipient of the conveyance.
(13) The Class C Certificates will bear legends substantially
to the effect of the matters contemplated by paragraphs (1) through
(12) above, unless Deutsche FRLP determines otherwise in accordance
with applicable law.
4
(14) This letter has been duly executed and delivered by the
Purchaser and constitutes the legal, valid and binding obligation of
the Purchaser, enforceable against the Purchaser in accordance with its
terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws or equitable
principles affecting the enforcement of creditors' rights generally and
general principles of equity.
IN WITNESS WHEREOF, the Purchaser has signed this letter as of the date
first above written.
[NAME OF PURCHASER]
By:____________________________________
Name:
Title:
SCHEDULE 1
Name of Series
2000-1 Account Account No.
-------------- -----------
Interest Funding Account 000-000-000
Principal Funding Account 000-000-000
Excess Funding Account 000-000-000
Reserve Fund 000-000-000
Yield Supplement Account 000-000-000
All of the foregoing accounts are maintained at the Trustee.
SCHEDULE 2
Initial Principal Amounts of the Series 2000-1 Certificates
-----------------------------------------------------------
Class Initial Principal Amount
----- ------------------------
Class A $1,193,750,000
Class B $37,500,000
Class C $18,750,000
