Exhibit 4.2
EXECUTION COPY
================================================================================
SERIES 2000-4 SUPPLEMENT
Dated as of October 26, 2000
to
POOLING AND SERVICING AGREEMENT
Dated as of September 30, 1993
$1,200,000,000
CAPITAL ONE MASTER TRUST
SERIES 2000-4
among
CAPITAL ONE BANK
Seller and Servicer
and
THE BANK OF NEW YORK
Trustee
on behalf of the Series 2000-4 Certificateholders
================================================================================
TABLE OF CONTENTS
Page
ARTICLE I
Creation of the Series 2000-4 Certificates
Section 1.01. Designation....................................................................................1
ARTICLE II
Definitions
Section 2.01. Definitions....................................................................................2
Section 2.02. Amendment to Section 2.08 of the Agreement....................................................19
ARTICLE III
Servicer and Trustee
Section 3.01. Servicing Compensation........................................................................19
ARTICLE IV
Rights of Series 2000-4 Certificateholders and Collateral
Interest Holder and Allocation and Application of Collections
Section 4.01. Collections and Allocations...................................................................20
Section 4.02. Determination of Monthly Interest.............................................................20
Section 4.03. Determination of Monthly Principal; Series 2000-4 Accounts....................................22
Section 4.04. Required Amount...............................................................................25
Section 4.05. Application of Class A Available Funds, Class B Available Funds, Collateral Available
Funds and Available Investor Principal Collections............................................25
Section 4.06. Defaulted Amounts; Investor Charge-Offs.......................................................28
Section 4.07. Excess Spread; Excess Finance Charges.........................................................29
Section 4.08. Reallocated Principal Collections.............................................................31
Section 4.09. Excess Finance Charges........................................................................32
Section 4.10. Shared Principal Collections..................................................................32
Section 4.11. Reserve Account...............................................................................32
Section 4.12. Interest Rate Swap............................................................................35
ARTICLE V
Distributions and Reports to Series 2000-4
Certificateholders
Section 5.01. Distributions.................................................................................38
Section 5.02. Reports and Statements to Series 2000-4 Certificateholders....................................39
ARTICLE VI
TABLE OF CONTENTS
continued
Page
Additional Pay Out Events
Section 6.01. Additional Pay Out Events.....................................................................40
ARTICLE VII
Optional Repurchase; Series Termination
Section 7.01. Optional Repurchase...........................................................................41
Section 7.02. Series Termination............................................................................42
ARTICLE VIII
Final Distributions
Section 8.01. Sale of Receivables or Certificateholders' Interest pursuant to Section 2.06 or 10.01
of the Agreement..............................................................................42
Section 8.02. Distribution of Proceeds of Sale, Disposition or Liquidation of the Receivables
pursuant to Section 9.02 of the Agreement.....................................................44
ARTICLE IX
New Issuances; Addition of Accounts
Section 9.01. New Issuances.................................................................................45
Section 9.02. Addition of Accounts..........................................................................45
ARTICLE X
Miscellaneous Provisions
Section 10.01. Ratification of Agreement.....................................................................46
Section 10.02. Counterparts..................................................................................46
Section 10.03. GOVERNING LAW.................................................................................46
Section 10.04. Determination of Material Adverse Effect......................................................46
Section 10.05. Book-Entry Certificates; Private Placement of the Class B Certificates........................46
Section 10.06. Uncertificated Securities.....................................................................47
Section 10.07. Transfers of the Collateral Interest..........................................................47
Section 10.08. Certain Accounting Related Amendments.........................................................47
TABLE OF CONTENTS
DOCSDC1:112743.9
EXHIBITS
EXHIBIT A-1 Form of Class A Certificate
EXHIBIT A-2 Form of Class B Certificate
EXHIBIT B Form of Monthly Certificateholders' Statement
EXHIBIT C Form of Monthly Servicing Officer's Certificate
EXHIBIT D Form of Investment Letter
SERIES 2000-4 SUPPLEMENT, dated as of October 26, 2000 (the "Supplement"),
between CAPITAL ONE BANK, a Virginia banking corporation, as Seller and
Servicer, and THE BANK OF NEW YORK, a New York banking corporation, as Trustee.
Pursuant to the Pooling and Servicing Agreement, dated as of September 30,
1993 (as amended and supplemented, the "Agreement"), among the Seller, the
Servicer and the Trustee, the Seller has created Capital One Master Trust (the
"Trust"). Section 6.03 of the Agreement provides that the Seller may from time
to time direct the Trustee to authenticate one or more new Series of Investor
Certificates representing fractional undivided interests in the Trust. The
Principal Terms of any new Series are to be set forth in a Supplement to the
Agreement.
Pursuant to this 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 2000-4 Certificates
Section 1.01. Designation.
------------
(a) There is hereby created a Series of Investor Certificates to be issued
pursuant to the Agreement and this Supplement to be known as "Capital One Master
Trust, Series 2000-4." The Series 2000-4 Certificates shall be issued in two
Classes, the first of which shall be known as the "Class A Floating Rate Asset
Backed Certificates, Series 2000-4" and the second of which shall be known as
the "Class B Floating Rate Asset Backed Certificates, Series 2000-4." In
addition, there is hereby created a third Class of uncertificated interests in
the Trust which, except as expressly provided herein, shall be deemed to be
"Investor Certificates" (and the Collateral Interest Holder shall be deemed to
be an "Investor Certificateholder") for all purposes under the Agreement and
this Supplement and which shall be known as the "Collateral Interest, Series
2000-4."
(b) Series 2000-4 shall be included in Group One and shall be a Principal
Sharing Series. Series 2000-4 shall not be subordinated to any other Series.
Notwithstanding any provision in the Agreement or in this Supplement to the
contrary, the first Distribution Date with respect to Series 2000-4 shall be the
November 2000 Distribution Date.
(c) 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 Supplement shall govern.
(d) The Collateral Interest Holder, as holder of an "Investor Certificate"
shall be entitled to the benefits of the Agreement and this Supplement.
Notwithstanding the foregoing, except as expressly provided herein, (i) the
provisions of Article VI and Article XII of the Agreement relating to the
registration, authentication, delivery, presentation, cancellation and surrender
of Registered Certificates and clauses (a) and (c) of the definition of "Tax
Opinion" in
Section 1.01 of the Agreement shall not be applicable to the Collateral
Interest, and (ii) the provisions of Section 3.07 of the Agreement shall not
apply to cause the Collateral Interest to be treated as debt for federal, state
and local income and franchise tax purposes, but rather the Seller intends and,
together with the Collateral Interest Holder, agrees to treat the Collateral
Interest for federal, state and local income and franchise tax purposes as
representing an equity interest in the assets of the Trust.
ARTICLE II
Definitions
-----------
Section 2.01. Definitions.
-----------
(a) Whenever used in this Supplement, the following words and phrases shall
have the following meanings, and the definitions of such terms are applicable to
the singular as well as the plural forms of such terms and the masculine as well
as the feminine and neuter genders of such terms.
"Accumulation Period" shall mean, unless a Pay Out Event shall have
-------------------
occurred prior thereto, the period commencing at the close of business on the
last day of the September 2004 Monthly Period or such later date as is
determined in accordance with Section 4.03(f) and ending on the first to occur
of (a) the commencement of the Early Amortization Period, (b) the payment in
full to Series 2000-4 Holders of the Invested Amount or (c) the Termination
Date.
"Accumulation Period Amount" shall mean for each Monthly Period, an amount
--------------------------
equal to the product of (i) Available Expected Principal for such Monthly Period
and (ii) a fraction, the numerator of which is the Initial Invested Amount and
the denominator of which is the sum of (a) the Initial Invested Amount and (b)
the invested amounts of all other Variable Accumulation Series which are not
scheduled to be in their revolving periods as of such Monthly Period; provided
that, for purposes of this definition, the commencement date of the accumulation
period of each such Variable Accumulation Series shall be deemed to have been
postponed to the latest permissible date, determined as if the provisions of
Section 4.03(f) applied to each such Series with such changes as may be
specified with respect to such Series (applying such provisions first to the
Variable Accumulation Series with the latest expected final payment date and
next to each Series with the next preceding expected final payment date).
"Accumulation Period Length" shall have the meaning specified in Section
--------------------------
4.03(f).
"Additional Interest" shall mean, at any time of determination, the Class A
-------------------
Additional Interest, the Class B Additional Interest and the Collateral
Additional Interest.
"Adjusted Invested Amount" shall mean, with respect to any date of
------------------------
determination, an amount equal to the Invested Amount less the Principal Funding
Account Balance on such date of determination.
"Assignee" shall have the meaning specified in subsection 10.07(a).
--------
2
"Available Expected Principal" for any date of determination with respect
----------------------------
to each Monthly Period shall be equal to the excess of (a) the Expected Monthly
Principal for such Monthly Period over (b) the sum of, without duplication, all
scheduled amortizations or accumulations of principal, including past due
shortfalls as of such date of determination, for all Non-Variable Accumulation
Series which are not scheduled to be in their revolving periods as of such
Monthly Period.
"Available Investor Principal Collections" shall mean, with respect to any
----------------------------------------
Monthly Period, an amount equal to the sum of (a) (i) an amount equal to the
Principal Allocation Percentage of all Collections of Principal Receivables
received during such Monthly Period, minus (ii) the amount of Reallocated
Principal Collections with respect to such Monthly Period which pursuant to
Section 4.08(a) or (b) are required to fund any deficiency in the amount to be
distributed pursuant to Sections 4.05(a)(i), (ii), (iii) and (iv), 4.05(b)(i)
and (ii) and 4.07(c)(II) for the related Distribution Date, plus (b) the amount
of Miscellaneous Payments, if any, for such Monthly Period that are allocated to
Series 2000-4 pursuant to Section 4.03 of the Agreement, plus (c) any Shared
Principal Collections with respect to other Series that are allocated to Series
2000-4 in accordance with Section 4.04 of the Agreement and Section 4.10 hereof,
plus (d) the amount of funds to be distributed pursuant to Section 4.05(a)(iv)
with respect to the related Distribution Date, plus (e) any other amounts which
pursuant to Section 4.07 hereof are to be treated as Available Investor
Principal Collections with respect to the related Distribution Date.
"Available Reserve Account Amount" shall mean, with respect to any
--------------------------------
Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (before giving effect to any deposit to be made to the
Reserve Account on such Distribution Date) and (b) the Required Reserve Account
Amount for such Distribution Date.
"Base Rate" shall mean, with respect to any Monthly Period, the annualized
---------
percentage equivalent of a fraction, the numerator of which is equal to the sum
of the Class A Monthly Interest, the Class B Monthly Interest, the Collateral
Minimum Monthly Interest, the Monthly Servicing Fee and the Net Swap Payment, if
any, less the Net Swap Receipt, if any, deposited in the Collection Account,
each with respect to the related Distribution Date and the denominator of which
is the Invested Amount as of the last day of the preceding Monthly Period.
"Class A Account Percentage" shall mean, with respect to any date of
--------------------------
determination, the percentage equivalent of a fraction, the numerator of which
is the aggregate amount with respect to Class A Monthly Principal on deposit in
the Principal Funding Account on such date (before giving effect to any deposit
to be made to the Principal Funding Account on such date) and the denominator of
which is the Principal Funding Account Balance on such date (before giving
effect to any deposit to be made to the Principal Funding Account on such date).
"Class A Additional Interest" shall have the meaning specified in Section
---------------------------
4.02(a).
3
"Class A Adjusted Invested Amount" shall mean, with respect to any date of
determination, an amount not less than zero equal to the Class A Invested Amount
less the Principal Funding Account Balance on such date.
"Class A Available Funds" shall mean, with respect to any Monthly Period,
an amount equal to the sum of (a) an amount equal to the product of (i) the
Class A Account Percentage and (ii) the amount of Principal Funding Investment
Proceeds, if any, with respect to the related Distribution Date, (b) the Class A
Floating Percentage of the Collections of Finance Charge Receivables (other than
Finance Charge Receivables allocated to Servicer Interchange with respect to
such Monthly Period) allocated to the Series 2000-4 Certificates (including any
investment earnings that are to be treated as Collections of Finance Charge
Receivables in accordance with the Agreement and this Supplement), (c) the
amount of funds, if any, to be withdrawn from the Reserve Account which,
pursuant to Section 4.11(d), are required to be included in Class A Available
Funds with respect to the related Distribution Date and (d) the Net Swap
Receipt, if any, deposited in the Collection Account on the related Distribution
Date and previously due but not paid Net Swap Receipts, if any, deposited in the
Collection Account on the related Distribution Date.
"Class A Certificate Rate" shall mean, for any Interest Period, a per annum
rate equal to LIBOR for such Interest Period plus 0.14%.
"Class A Certificateholder" shall mean the Person in whose name a Class A
Certificate is registered in the Certificate Register.
"Class A Certificates" shall mean any of Certificates executed by the Bank
and authenticated by or on behalf of the Trustee, substantially in the form of
Exhibit A-1.
"Class A Floating Percentage" shall mean, with respect to any Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, the numerator of which is equal to the Class A Adjusted Invested
Amount as of the close of business on the last day of the preceding Monthly
Period and the denominator of which is equal to the Adjusted Invested Amount as
of such day; provided, however, that, with respect to the first Monthly Period,
the Class A Floating Percentage shall mean the Class A Initial Percentage.
"Class A Initial Invested Amount" shall mean the aggregate initial
principal amount of the Class A Certificates, which is $975,000,000.
"Class A Initial Percentage" shall mean the percentage equivalent of a
fraction, the numerator of which is the Class A Initial Invested Amount and the
denominator of which is the Initial Invested Amount.
"Class A Interest Shortfall" shall have the meaning specified in Section
4.02(a).
"Class A Invested Amount" shall mean, on any date of determination, an
amount equal to (a) the Class A Initial Invested Amount, minus (b) the aggregate
amount of principal payments made to the Class A Certificateholders on or prior
to such date, minus (c) the excess, if
4
any, of the aggregate amount of Class A Investor Charge-Offs for all prior
Distribution Dates over the aggregate amount of Class A Investor Charge-Offs
reimbursed pursuant to Section 4.06(a) prior to such date; provided, however,
that the Class A Invested Amount may not be reduced below zero.
"Class A Investor Charge-Offs" shall have the meaning specified in Section
4.06(a).
"Class A Investor Default Amount" shall mean, with respect to each
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for the related Monthly Period and (ii) the Class A Floating Percentage
for such Monthly Period.
"Class A Monthly Interest" shall have the meaning specified in Section
4.02(a).
"Class A Monthly Principal" shall have the meaning specified in Section
4.03(a).
"Class A Outstanding Additional Interest" shall mean, with respect to any
Distribution Date, the amount of Class A Additional Interest previously due but
not paid to the Class A Certificateholders.
"Class A Outstanding Monthly Interest" shall mean, with respect to any
Distribution Date, the amount of Class A Monthly Interest previously due but not
paid to the Class A Certificateholders.
"Class A Penalty Rate" shall mean, for any Interest Period, the sum of the
Class A Certificate Rate for such Interest Period and 2.00% per annum.
"Class A Principal Percentage" shall mean, with respect to any Monthly
Period (i) during the Revolving Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the
Class A Invested Amount as of the last day of the immediately preceding Monthly
Period (or, in the case of the first Monthly Period, the Closing Date) and the
denominator of which is the Invested Amount as of such day and (ii) during the
Accumulation Period or the Early Amortization Period, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of which
is the Class A Invested Amount as of the last day of the Revolving Period, and
the denominator of which is the Invested Amount as of such last day; provided,
however, that, with respect to the first Monthly Period, the Class A Principal
Percentage shall mean the Class A Initial Percentage.
"Class A Required Amount" shall have the meaning specified in Section
4.04(a).
"Class A Servicing Fee" shall have the meaning specified in Section 3.01.
"Class B Account Percentage" shall mean, with respect to any date of
determination, the percentage equivalent of a fraction, the numerator of which
is the aggregate amount with respect to Class B Monthly Principal on deposit in
the Principal Funding Account on
5
such date (before giving effect to any deposit to be made to the Principal
Funding Account on such date) and the denominator of which is the Principal
Funding Account Balance on such date (before giving effect to any deposit to be
made to the Principal Funding Account on such date).
"Class B Additional Interest" shall have the meaning specified in Section
4.02(b).
"Class B Adjusted Invested Amount" shall mean, with respect to any date of
determination, an amount not less than zero equal to the Class B Invested Amount
less the excess, if any, of the Principal Funding Account Balance over the Class
A Invested Amount on such date.
"Class B Available Funds" shall mean, with respect to any Monthly Period,
an amount equal to the sum of (a) an amount equal to the product of (i) the
Class B Account Percentage and (ii) the amount of Principal Funding Investment
Proceeds, if any, with respect to the related Distribution Date, (b) the Class B
Floating Percentage of the Collections of Finance Charge Receivables (other than
Finance Charge Receivables allocated to Servicer Interchange with respect to
such Monthly Period) allocated to the Series 2000-4 Certificates (including any
investment earnings that are to be treated as Collections of Finance Receivables
in accordance with the Agreement) and (c) the amount of funds, if any, to be
withdrawn from the Reserve Account which, pursuant to Section 4.11(d), are
required to be included in Class B Available Funds with respect to the related
Distribution Date.
"Class B Certificate Rate" shall mean, for any Interest Period, a per annum
rate specified in the Supplemental Rate Letter, such rate not to exceed LIBOR
for such Interest Period plus 0.50%.
"Class B Certificateholder" shall mean the Person in whose name a Class B
Certificate is registered in the Certificate Register.
"Class B Certificates" shall mean any one of the Certificates executed by
the Bank and authenticated by or on behalf of the Trustee, substantially in the
form of Exhibit A-2.
"Class B Floating Percentage" shall mean, with respect to any Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, the numerator of which is equal to the Class B Adjusted Invested
Amount as of the close of business on the last day of the preceding Monthly
Period and the denominator of which is equal to the Adjusted Invested Amount as
of the close of business on such day; provided, however, that, with respect to
the first Monthly Period, the Class B Floating Percentage shall mean the Class B
Initial Percentage.
"Class B Initial Invested Amount" shall mean the aggregate initial
principal amount of the Class B Certificates, which is $120,000,000.
"Class B Initial Percentage" shall mean the percentage equivalent of a
fraction, the numerator of which is the Class B Initial Invested Amount and the
denominator of which is the Initial Invested Amount.
6
"Class B Interest Shortfall" shall have the meaning specified in Section
4.02(b).
"Class B Invested Amount" shall mean, on any date of determination, an
amount equal to (a) the Class B Initial Invested Amount, minus (b) the aggregate
amount of principal payments made to the Class B Certificateholders prior to
such date, minus (c) the aggregate amount of Class B Investor Charge-Offs for
all prior Distribution Dates, minus (d) the aggregate amount of Reallocated
Principal Collections allocated on all prior Distribution Dates pursuant to
Section 4.08(a) (excluding any Reallocated Principal Collections that have
resulted in a reduction in the Collateral Invested Amount pursuant to Section
4.06(c)), minus (e) an amount equal to the amount by which the Class B Invested
Amount has been reduced on all prior Distribution Dates pursuant to Section
4.06(a), plus (f) the amount of Excess Spread and Excess Finance Charges
allocated and available on all prior Distribution Dates pursuant to Section
4.07(d) for the purpose of reimbursing amounts deducted pursuant to the
foregoing clauses (c), (d) and (e); provided, however, that the Class B Invested
Amount may not reduced below zero.
"Class B Investor Charge-Offs" shall have the meaning specified in Section
4.06(b).
"Class B Investor Default Amount" shall mean, with respect to each
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for the related Monthly Period and (ii) the Class B Floating Percentage
for such Monthly Period.
"Class B Monthly Interest" shall have the meaning specified in Section
4.02(b).
"Class B Monthly Principal" shall have the meaning specified in Section
4.03(b).
"Class B Outstanding Additional Interest" shall mean, with respect to any
Distribution Date, the amount of Class B Additional Interest previously due but
not paid to the Class B Certificateholders.
"Class B Outstanding Monthly Interest" shall mean, with respect to any
Distribution Date, the amount of Class B Monthly Interest previously due but not
paid to the Class B Certificateholders.
"Class B Penalty Rate" shall mean, for any Interest Period, the sum of the
Class B Certificate Rate for such Interest Period and 2.00% per annum.
"Class B Principal Percentage" shall mean, with respect to any Monthly
Period (i) during the Revolving Period, the percentage equivalent (which
percentage shall never exceed 100%) of a fraction, the numerator of which is the
Class B Invested Amount as of the last day of the immediately preceding Monthly
Period (or, in the case of the first Monthly Period, the Closing Date) and the
denominator of which is the Invested Amount as of such day and (ii) during the
Accumulation Period or the Early Amortization Period, the percentage equivalent
(which percentage shall never exceed 100%) of a fraction, the numerator of which
is the Class B Invested Amount as of the last day of the Revolving Period, and
the denominator of which is the
7
Invested Amount as of such last day; provided, however, that, with respect to
the first Monthly Period, the Class B Principal Percentage shall mean the Class
B Initial Percentage.
"Class B Required Amount" shall have the meaning specified in Section
4.04(b).
"Class B Servicing Fee" shall have the meaning specified in Section 3.01.
"Closing Date" shall mean October 26, 2000.
"Collateral Account Percentage" shall mean, with respect to any date of
determination, the percentage equivalent of a fraction, the numerator of which
is the aggregate amount with respect to Collateral Monthly Principal on deposit
in the Principal Funding Account on such date (before giving effect to any
deposit to be made to the Principal Funding Account on such date) and the
denominator of which is the Principal Funding Account Balance on such date
(before giving effect to any deposit to be made to the Principal Funding Account
on such date).
"Collateral Additional Interest" shall have the meaning specified in
Section 4.02(c).
"Collateral Adjusted Invested Amount" shall mean, with respect to any date
of determination, an amount not less than zero equal to the Collateral Invested
Amount less the excess, if any, of the Principal Funding Account Balance over
the sum of the Class A Invested Amount and the Class B Invested Amount on such
date.
"Collateral Available Funds" shall mean, with respect to any Monthly
Period, an amount equal to the sum of (a) an amount equal to the product of (i)
the Collateral Account Percentage and (ii) the amount of Principal Funding
Investment Proceeds, if any, with respect to the related Distribution Date and
(b) the Collateral Floating Percentage of the Collections of Finance Charge
Receivables (other than Finance Charge Receivables allocated to Servicer
Interchange with respect to such Monthly Period) allocated to the Series 2000-4
Certificates (including any investment earnings that are to be treated as
Collections of Finance Charge Receivables in accordance with the Agreement).
"Collateral Floating Percentage" shall mean, with respect to any Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, the numerator of which is the Collateral Adjusted Invested Amount as
of the close of business on the last day of the preceding Monthly Period and the
denominator of which is equal to the Adjusted Invested Amount as of such day;
provided, however, that with respect to the first Monthly Period, the Collateral
Floating Percentage shall mean the percentage equivalent of a fraction, the
numerator of which is the Collateral Initial Invested Amount and the denominator
of which is the Initial Invested Amount.
"Collateral Initial Invested Amount" shall mean $105,000,000.
"Collateral Interest" shall mean a fractional undivided interest in the
Trust which shall consist of the right to receive (i) to the extent necessary to
make the required payments to a
8
Collateral Interest Holder under this Supplement, the portion of Collections
allocable thereto under the Agreement and this Supplement and funds on deposit
in the Collection Account allocable thereto pursuant to the Agreement and this
Supplement and (ii) amounts available for payment to the Collateral Interest
Holder pursuant to, without duplication, Section 4.05 and subsections 4.07(j),
4.11(d)(iii), 4.11(e), 4.11(f), 4.12(b), 8.01(b), 8.02(a) and 8.02(b).
"Collateral Interest Holder" shall mean the entity so designated in the
Transfer Agreement.
"Collateral Interest Minimum Rate" shall mean a rate per annum specified in
the Transfer Agreement not to exceed LIBOR for one-month United States dollar
deposits, determined as of the related LIBOR Determination Date, plus 1.00%.
"Collateral Interest Shortfall" shall have the meaning specified in
subsection 4.02(c).
"Collateral Invested Amount" shall mean, when used with respect to any
date, an amount equal to (a) the Collateral Initial Invested Amount, minus (b)
the aggregate amount of principal payments made to the Collateral Interest
Holder prior to such date, minus (c) an amount equal to the aggregate amount by
which the Collateral Invested Amount has been reduced on all prior Distribution
Dates pursuant to Section 4.06, plus (d) the aggregate amount of Excess Finance
Charges and Excess Spread allocated and available on all prior Distribution
Dates pursuant to Section 4.07(h) for the purpose of reimbursing amounts
deducted pursuant to the foregoing clause (c); provided, however, that the
Collateral Invested Amount may not be reduced below zero.
"Collateral Investor Default Amount" shall mean, with respect to each
Distribution Date, an amount equal to the product of (i) the Investor Default
Amount for the related Monthly Period and (ii) the Collateral Floating
Percentage for such Monthly Period.
"Collateral Minimum Monthly Interest" shall have the meaning specified in
Section 4.02(c).
"Collateral Monthly Principal" shall have the meaning specified in Section
4.03(c).
"Collateral Outstanding Additional Interest" shall mean, with respect to
any Distribution Date, the amount of Collateral Additional Interest previously
due but not paid to the Collateral Interest Holder.
"Collateral Outstanding Monthly Interest" shall mean, with respect to any
Distribution Date, the amount of Collateral Minimum Monthly Interest previously
due but not paid to the Collateral Interest Holder.
"Collateral Servicing Fee" shall have the meaning specified in Section
3.01.
9
"Controlled Accumulation Amount" shall mean for any Distribution Date with
respect to the Accumulation Period, $100,000,000; provided, however, that, if
the Accumulation Period is modified pursuant to Section 4.03(f), (i) the
Controlled Accumulation Amount for each Distribution Date with respect to the
Accumulation Period shall mean the amount specified in accordance with such
Section on the date on which the Accumulation Period has most recently been
modified, (ii) the Controlled Accumulation Amount for each related Monthly
Period shall be no greater than the Accumulation Period Amount for such Monthly
Period and (iii) the sum of the Controlled Accumulation Amounts for all
Distribution Dates with respect to the modified Accumulation Period shall not be
less than the Initial Invested Amount.
"Controlled Deposit Amount" shall mean, for any Distribution Date with
respect to the Accumulation Period, an amount equal to the sum of the Controlled
Accumulation Amount for such Distribution Date and any Deficit Controlled
Accumulation Amount for the immediately preceding Distribution Date.
"Covered Amount" shall mean for any Distribution Date with respect to the
Accumulation Period or the first Special Payment Date, an amount equal to the
sum of (a) the product of (i) the Swap Fixed Rate, or, in the event the Interest
Rate Swap has been terminated, the Class A Certificate Rate, in either case, in
effect for the related Interest Period, (ii) a fraction, the numerator of which
is 30, or, in the event the Interest Rate Swap has been terminated, the
numerator of which is the actual number of days from and including the preceding
Distribution Date to but excluding such Distribution Date and, in either case,
the denominator of which is 360 and (iii) the aggregate amount on deposit in the
Principal Funding Account with respect to Class A Monthly Principal, if any, as
of the preceding Distribution Date, plus (b) the product of (i) the Class B
Certificate Rate in effect for the related Interest Period, (ii) a fraction, the
numerator of which is the actual number of days from and including the preceding
Distribution Date to but excluding such Distribution Date and the denominator of
which is 360 and (iii) the aggregate amount on deposit in the Principal Funding
Account with respect to Class B Monthly Principal, if any, as of the preceding
Distribution Date, plus (c) the product of (i) the Collateral Interest Minimum
Rate in effect for the related Interest Period, (ii) a fraction, the numerator
of which is the actual number of days from and including the preceding
Distribution Date to but excluding such Distribution Date and the denominator of
which is 360 and (iii) the aggregate amount on deposit in the Principal Funding
Account with respect to Collateral Monthly Principal, if any, as of the
preceding Distribution Date.
"Cut-Off Date" shall mean October 1, 2000.
"Deficit Controlled Accumulation Amount" shall mean (a) on the first
Distribution Date with respect to the Accumulation Period, the excess, if any,
of the Controlled Accumulation Amount for such Distribution Date over the amount
distributed from the Collection Account as Class A Monthly Principal, Class B
Monthly Principal and Collateral Monthly Principal for such Distribution Date
and (b) on each subsequent Distribution Date with respect to the Accumulation
Period, the excess, if any, of the Controlled Deposit Amount for such subsequent
Distribution Date plus any Deficit Controlled Accumulation Amount for the prior
Distribution Date over the amount distributed from the Collection Account as
Class A
10
Monthly Principal, Class B Monthly Principal and Collateral Monthly Principal
for such subsequent Distribution Date.
"Early Amortization Period" shall mean the period commencing at the close
of business on the Business Day immediately preceding the day on which a Pay Out
Event with respect to Series 2000-4 is deemed to have occurred and ending on the
first to occur of (i) the payment in full to the Class A Certificateholders and
the Class B Certificateholders of the Class A Invested Amount and the Class B
Invested Amount, respectively, and the payment in full to the Collateral
Interest Holder of the Collateral Invested Amount, if any, or (ii) the
Termination Date.
"Excess Shared Principal Collections" shall mean the excess of the Shared
Principal Collections over the aggregate amount of Principal Shortfalls for all
Series, as defined in each related Supplement, which are Principal Sharing
Series for such Distribution Date.
"Excess Spread" shall mean, with respect to any Distribution Date, the sum
of the amounts, if any, specified pursuant to Sections 4.05(a)(v), 4.05(b)(iii)
and 4.05(c)(ii) with respect to such Distribution Date.
"Expected Final Payment Date" shall mean the October 2005 Distribution
Date.
"Expected Monthly Principal" shall be equal to the product of (i) the
lowest of the monthly principal payment rates (determined by dividing
Collections of Principal Receivables during a calendar month by the amount of
Principal Receivables in the Trust as of the last day of the preceding month,
adjusted for additions and removals occurring after such last day), expressed as
a decimal for the 12 calendar months preceding the date of such calculation (or
such lower principal payment rate as the Servicer may select) and (ii) the sum
of the Initial Invested Amounts (as defined in the related Supplement) of all
outstanding Series, other than Variable Funding Series.
"Finance Charge Shortfall" shall have the meaning specified in Section
4.09.
"Fitch" shall mean Fitch, Inc.
"Fixed Amount" shall mean, for any Distribution Date, an amount equal to
the fixed amount payable by the Trust to the Swap Counterparty for such date
pursuant to the Interest Rate Swap.
"Floating Allocation Percentage" shall mean, with respect to any Monthly
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, the numerator of which is the Adjusted Invested Amount as of the
last day of the preceding Monthly Period (or, with respect to the first Monthly
Period, the Initial Invested Amount) and the denominator of which is the sum of
(i) the total amount of Principal Receivables in the Trust as of such day (or,
with respect to the first Monthly Period, the Cut-Off Date) and (ii) the
principal amount on deposit in the Excess Funding Account as of such last day;
provided, however, that if the Seller so designates, the amount calculated above
pursuant to clause (i) of the denominator shall be increased by the aggregate
amount of Principal Receivables in Additional Accounts
11
added to the Trust during such Monthly Period as though such Receivables had
been added to the Trust as of the first day of such Monthly Period.
"Floating Amount" shall mean, for any Distribution Date, an amount equal to
the floating amount payable by the Swap Counterparty to the Trust for such date
pursuant to the Interest Rate Swap.
"Floating Rate Notional Amount" shall mean the Floating Rate Notional
Amount as defined in the Interest Rate Swap.
"Group One" shall mean Series 2000-4 and each other series specified in the
related Supplement to be included in Group One.
"Initial Invested Amount" shall mean the sum of the Class A Initial
Invested Amount, the Class B Initial Invested Amount and the Collateral Initial
Invested Amount.
"Initial Servicing Fee" shall have the meaning specified in Section 3.01.
"Interest Payment Date" shall mean, with respect to the Class A
Certificates, the Class B Certificates and the Collateral Interest, the 15th day
of each month (or, if such day is not a Business Day, the next succeeding
Business Day), commencing on the November 2000 Distribution Date.
"Interest Period" shall mean with respect to any Payment Date, the period
from and including the Payment Date immediately preceding such Payment Date (or,
in the case of the first Payment Date, from and including the Closing Date) to
but excluding such Payment Date.
"Interest Rate Swap" shall mean the ISDA Master Agreement, together with
the Schedule and Confirmation thereto, each dated as of the Closing Date,
between the Trustee, on behalf of the Trust, and the Swap Counterparty, as such
Interest Rate Swap may be amended, modified or replaced.
"Invested Amount" shall mean, as of any date of determination, an amount
equal to the sum of (a) the Class A Invested Amount as of such date, (b) the
Class B Invested Amount as of such date and (c) the Collateral Invested Amount
as of such date.
"Investment Letter" shall have the meaning specified in subsection
10.07(a).
"Investor Charge-Offs" shall mean Class A Investor Charge-Offs and Class B
Investor Charge-Offs.
"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
Monthly Period and (b) the Floating Allocation Percentage for such Monthly
Period.
"LIBOR" shall mean, as of any LIBOR Determination Date, the rate for
deposits in United States dollars for a one-month period which appears on
Telerate Page 3750 as of
12
11:00 a.m., London time, on such date. If such rate does not appear on Telerate
Page 3750, the rate for that LIBOR Determination Date shall be determined on the
basis of the rates at which deposits in United States dollars are offered by the
Reference Banks at approximately 11:00 a.m., London time, on that day to prime
banks in the London interbank market for a one-month period. The Servicer shall
request the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two such quotations are provided, the rate
for that LIBOR Determination Date shall be the arithmetic mean of the
quotations. If fewer than two quotations are provided as requested, the rate for
that LIBOR Determination Date shall be the arithmetic mean of the rates quoted
by major banks in New York City, selected by the Servicer, at approximately
11:00 a.m., New York City time, on that day for loans in United States dollars
to leading European banks for a one-month period; provided, however, that if the
banks selected as aforesaid by the Servicer are not quoting as mentioned, the
rate for that day shall be the rate then in effect on such LIBOR Determination
Date.
"LIBOR Determination Date" shall mean, for any Interest Period, the second
London Business Day prior to the commencement of such Interest Period (or, in
the case of the initial Interest Period, the second London Business Day prior to
the Closing Date).
"London Business Day" shall mean a day on which dealings in deposits in
United States dollars are transacted in the London interbank market.
"Monthly Interest" means, with respect to any Distribution Date, the Class
A Monthly Interest, the Class B Monthly Interest, Collateral Minimum Monthly
Interest and the Net Swap Payment, if any, each for such Distribution Date.
"Monthly Servicing Fee" shall have the meaning specified in Section 3.01.
"Net Servicing Fee Rate" shall mean (i) so long as the Seller or The Bank
of New York is the Servicer, 1.25% per annum and (ii) if the Seller or The Bank
of New York is no longer the Servicer, 2.00% per annum.
"Net Swap Payment" shall mean, for any Distribution Date, (a) if the
netting provisions of subsection 2(c)(ii) of the Interest Rate Swap apply, the
amount by which the Fixed Amount for such date exceeds the Floating Amount for
such date, and (b) otherwise, an amount equal to the Fixed Amount for such date.
"Net Swap Receipt" shall mean, for any Distribution Date, (a) if the
netting provisions of subsection 2(c)(ii) of the Interest Rate Swap apply, the
amount by which the Floating Amount for such date exceeds the Fixed Amount for
such date, and (b) otherwise, an amount equal to the Floating Amount for such
date.
"Nonvariable Accumulation Series" shall mean each outstanding Series that
is not a Variable Funding Series or a Variable Accumulation Series.
"Payment Date" shall mean any Interest Payment Date and any Special Payment
Date.
13
"Permitted Assignee" shall mean any Person who, if it were the Collateral
Interest Holder or holder of an interest in the Trust, as applicable, would not
cause the Trust to be taxable as a publicly traded partnership for federal
income tax purposes.
"Portfolio Adjusted Yield" shall mean, with respect to any Distribution
Date, the average of the percentages obtained for each of the three preceding
Monthly Periods by subtracting the Base Rate for each such Monthly Period from
the Portfolio Yield for each such Monthly Period, and deducting 0.50% from the
result for each such Monthly Period.
"Portfolio Yield" shall mean, with respect to any Monthly Period, the
annualized percentage equivalent of a fraction, the numerator of which is equal
to (a) an amount equal to the product obtained by multiplying the Floating
Allocation Percentage with respect to such Monthly Period and the amount of
Collections of Finance Charge Receivables with respect to such Monthly Period
(including any investment earnings and certain other amounts that are to be
treated as Collections of Finance Charge Receivables in accordance with the
Agreement) calculated on a billed basis, or, in the case of any such Collections
consisting of annual membership fees, on an amortized (rather than billed)
basis, plus (b) the amount of any Principal Funding Investment Proceeds for the
related Distribution Date, plus (c) any Excess Finance Charges that are
allocated to Series 2000-4 with respect to such Monthly Period, plus (d) the
amount of funds, if any, withdrawn from the Reserve Account which, pursuant to
Section 4.11(d), are required to be included as Class A Available Funds or Class
B Available Funds or paid to the Collateral Interest Holder for the Distribution
Date with respect to such Monthly Period, minus (e) the Investor Default Amount
for the Distribution Date with respect to such Monthly Period, and the
denominator of which is the Invested Amount as of the last day of the preceding
Monthly Period.
"Principal Allocation Percentage" shall mean, with respect to any day
during a Monthly Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, the numerator of which is (a) during the Revolving
Period, the Invested Amount as of the last day of the immediately preceding
Monthly Period (or, in the case of the first Monthly Period, the Cut-Off Date)
and (b) after the end of the Revolving Period, the Invested Amount as of the
last day of the Revolving Period and the denominator of which is the greater of
(i) the sum of the total amount of Principal Receivables in the Trust as of the
last day of the immediately preceding Monthly Period and the principal amount on
deposit in the Excess Funding Account as of such last day (or, in the case of
the first Monthly Period, the Cut-Off Date) and (ii) the sum of the numerators
used to calculate the principal allocation percentages for all Series
outstanding as of the date as to which such determination is being made;
provided, however, that if the Seller so designates, the amount calculated above
pursuant to clause (i) of the denominator shall be increased by the aggregate
amount of Principal Receivables in Additional Accounts added to the Trust during
such Monthly Period as though such Receivables had been added to the Trust as of
the first day of such Monthly Period; provided further, however, that if after
the commencement of the Accumulation Period or the Early Amortization Period a
Pay Out Event occurs with respect to another Series that was designated in the
Supplement therefor as a Series that is a "Paired Series" with respect to Series
2000-4, the Seller may, by written notice delivered to the Trustee and the
Servicer, designate a different numerator for the foregoing fraction, provided
that (x) such numerator is not less than the Adjusted Invested Amount as of the
last day of the
14
revolving period for such Paired Series and (y) the Seller shall have received
written notice from each Rating Agency that such designation will not have a
Ratings Effect and shall have delivered copies of each such written notice to
the Servicer and the Trustee and the Seller shall have delivered to the Trustee
an Officer's Certificate to the effect that, based on the facts known to such
officer at that time, in the reasonable belief of the Seller, such designation
will not cause a Pay Out Event or an event that, after the giving of notice or
the lapse of time, would constitute a Pay Out Event, to occur with respect to
Series 2000-4.
"Principal Funding Account" shall have the meaning set forth in Section
4.03(d)(i).
"Principal Funding Account Balance" shall mean, with respect to any date of
determination during the Accumulation Period, the principal amount, if any, on
deposit in the Principal Funding Account on such date of determination.
"Principal Funding Investment Proceeds" shall have the meaning specified in
Section 4.03(d)(ii).
"Principal Shortfall" shall have the meaning specified in Section 4.10.
"Prospectus" shall mean the prospectus and the prospectus supplement as
filed with the Securities and Exchange Commission under Rule 424(b) of the
Securities Act relating to the Series 2000-4 Certificates.
"Reallocated Principal Collections" shall mean, with respect to any Monthly
Period, the product of (a) the Principal Allocation Percentage with respect to
such Monthly Period, (b) the aggregate amount of Collections in respect of
Principal Receivables deposited in the Collection Account for such Monthly
Period and (c) the sum of the Class B Floating Percentage and the Collateral
Floating Percentage with respect to such Monthly Period.
"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 Adjusted Invested Amount on such
Distribution Date, plus (ii) Monthly Interest for such Distribution Date and any
Monthly Interest previously due but not distributed to the Series 2000-4
Certificateholders and the Collateral Interest Holder on a prior Distribution
Date, plus (iii) the amount of Additional Interest, if any, for such
Distribution Date and any Additional Interest previously due but not distributed
to the Series 2000-4 Certificateholders and the Collateral Interest Holder on a
prior Distribution Date, plus (iv) any previously due but not paid Net Swap
Payments.
"Reference Banks" shall mean four major banks in the London interbank
market selected by the Servicer.
"Required Reserve Account Amount" shall mean, with respect to any
Distribution Date prior to the Reserve Account Funding Date, $0, and on or after
the Reserve Account Funding Date, an amount equal to (a) 0.50% of the Invested
Amount as of the preceding
15
Distribution Date (after giving effect to all changes therein on such date), or
(b) any other amount designated by the Seller, provided that, if such
designation is of a lesser amount, the Seller (i) shall have received written
notice from each Rating Agency that such designation will not have a Ratings
Effect and shall have delivered copies of each such written notice to the
Servicer and the Trustee, and (ii) shall have delivered to the Trustee a
certificate of an authorized officer to the effect that, based on the facts
known to such officer at such time, in the reasonable belief of the Seller, such
designation will not cause a Pay Out Event or an event that, after the giving of
notice or the lapse of time, would cause a Pay Out Event, to occur with respect
to Series 2000-4.
"Reserve Account" shall have the meaning specified in Section 4.11(a).
"Reserve Account Funding Date" shall mean the Distribution Date with
respect to the Monthly Period which commences 12 months prior to the Monthly
Period which as of the related Determination Date is scheduled to commence the
Accumulation Period in accordance with Section 4.03(f) provided that the Seller
may delay the Reserve Account Funding Date to the Distribution Date with respect
to the Monthly Period which occurs not later than the number of months prior to
the scheduled commencement date of the Accumulation Period determined in
accordance with the following schedule:
============================================================ =========================================================
Portfolio Adjusted Yield (rounded up to nearest whole number)
------------------------ ----------------------------------
------------------------------------------------------------ ---------------------------------------------------------
Less than 2% 12
------------------------------------------------------------ ---------------------------------------------------------
2% or more, but less than 3% 6
------------------------------------------------------------ ---------------------------------------------------------
3% or more, but less than 4% 4
------------------------------------------------------------ ---------------------------------------------------------
4% or more 3
============================================================ =========================================================
"Reserve Account Surplus" shall mean, as of any date of determination, the
amount, if any, by which the amount on deposit in the Reserve Account exceeds
the Required Reserve Account Amount.
"Reserve Draw Amount" shall have the meaning specified in Section 4.11(c).
"Revolving Period" shall mean the period beginning at the close of business
on the Cut-Off Date and ending on the earlier of (a) the close of business on
the day the Accumulation Period commences and (b) the close of business on the
day the Early Amortization Period commences.
"Series 2000-4" shall mean the Series of Investor Certificates, the terms
of which are specified in this Supplement, and shall include the Class A
Certificates, the Class B Certificates and the Collateral Interest.
"Series 2000-4 Certificateholder" shall mean a Class A Certificateholder or
a Class B Certificateholder.
16
"Series 2000-4 Certificate" shall mean a Class A Certificate or a Class B
Certificate.
"Series 2000-4 Holder" shall mean a Class A Certificateholder, a Class B
Certificateholder or a Collateral Interest Holder.
"Series 2000-4 Interests" shall mean the Class A Certificates, the Class B
Certificates and the Collateral Interest.
"Servicer Interchange" shall mean, for any Monthly Period, the product of
(a) the Floating Allocation Percentage for such Monthly Period and (b) the
portion of Collections of Finance Charge Receivables allocated to the Series
2000-4 Certificates and the Collateral Interest with respect to such Monthly
Period that is attributable to Interchange; provided, however, that Servicer
Interchange for a Monthly Period shall not exceed one-twelfth of the product of
(i) the Servicing Base Amount as of the last day of such Monthly Period and (ii)
0.75%.
"Servicing Base Amount" shall have the meaning specified in Section 3.01.
"Servicing Fee Rate" shall mean 2.00%.
"Special Payment Date" shall mean each Distribution Date with respect to
the Early Amortization Period.
"Supplemental Rate Letter" shall mean that certain letter agreement
designated as the Supplemental Rate Letter, dated as of the Closing Date,
between the Seller and the Trustee.
"Swap Counterparty" shall mean Xxxxxx Guaranty Trust Company of New York,
and any of its successors or transferees under the Interest Rate Swap.
"Swap Fixed Rate" shall mean, for any applicable Interest Period, the fixed
rate specified in the Interest Rate Swap.
"Swap Floating Rate" shall mean, for any applicable Interest Period, the
floating rate specified in the Interest Rate Swap.
"Telerate Page 3750" shall mean the display page currently so designated on
the Bridge Telerate Market Report (or such other page as may replace that page
on that service for the purpose of displaying comparable rates or prices).
"Termination Date" shall mean the August 2008 Distribution Date.
"Transfer" shall have the meaning specified in subsection 10.07(a).
"Transfer Agreement" shall mean the Transfer and Administration Agreement,
dated as of October 26, 2000, between Capital One Bank, as Transferor and
Administrator, and Capital One Secured Note Trust 2000-4, as amended or modified
from time to time, relating to the transfer of the Collateral Interest.
17
"Variable Accumulation Series" shall mean each outstanding Series, other
than any Variable Funding Series, for which, pursuant to the terms of the
related Supplement, at the time a determination is made pursuant to Section
4.03(f), the commencement date of the Accumulation Period may be changed.
"Variable Funding Series" shall mean any Series designated in the related
Supplement as a Variable Funding Series.
(b) Notwithstanding anything to the contrary in this Supplement or the
Agreement, the term "Rating Agency" shall mean, whenever used in this Supplement
or the Agreement with respect to Series 2000-4, Xxxxx'x and Standard & Poor's
and Fitch. As used in this Supplement and in the Agreement with respect to
Series 2000-4, "highest investment category" shall mean (i) in the case of
Standard & Poor's, A-1+, AAA, AAAm or AAAm-G, as applicable, (ii) in the case of
Xxxxx'x, P-1 or Aaa, as applicable and (iii) in the case of Fitch, if rated by
Fitch, F1+ or AAA, as applicable.
(c) Notwithstanding any provision of the Agreement or this Supplement, the
term "Paying Agent" when used in the Agreement or this Supplement with respect
to Series 2000-4, shall mean, the Paying Agent specified pursuant to the
Agreement, and any successor paying agents with respect to the Class A
Certificates, the Class B Certificates and the Collateral Interest as the Seller
may appoint from time to time in accordance with the provisions of the Pooling
and Servicing Agreement.
(d) All capitalized terms used herein and not otherwise defined herein have
the meanings ascribed to them in the Agreement.
(e) The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Supplement shall refer to this Supplement as a whole
and not to any particular provision of this Supplement; references to any
Article, Section or Exhibit are references to Articles, Sections and Exhibits in
or to this Supplement unless otherwise specified; and the term "including" means
"including without limitation."
Section 2.02. Amendment to Section 2.08 of the Agreement. Section
2.08(c)(i) of the Agreement is hereby amended and restated in its entirety to
read as follows:
(c) Automatic Additional Accounts. (i) The Seller may from time to
time, at its sole discretion, subject to and in compliance with the
limitations specified in clause (ii) below and the applicable conditions
specified in paragraph (d) below, designate Eligible Accounts to be
included as Accounts as of the applicable Additional Cut-Off Date. For
purposes of this paragraph, Eligible Accounts shall be deemed to include
only consumer revolving credit card accounts or other consumer revolving
credit accounts which (x) are originated by the Seller or any Affiliate of
the Seller, (y) are of a type included as Initial Accounts or which have
previously been included in any Addition which has been effected in
accordance with all of the conditions specified in paragraph (d) below and
(z) have a designation other than "Associate 20," "Associate 21,"
"Associate 195," "Associate 196," "Associate 197," "Associate 198,"
"Associate 199,"
18
"Associate 289," "Associate 290," "Associate 291," "Associate 292,"
"Associate 293," "Associate 294," "Associate 295," "Associate 296,"
"Associate 297," "Associate 298" or "Associate 299" marketing programs in
the Seller's credit card master file.
ARTICLE III
Servicer and Trustee
Section 3.01. Servicing Compensation. The share of the Servicing Fee
allocable to the Series 2000-4 Certificateholders and the Collateral Interest
Holder with respect to any Distribution Date (the "Monthly Servicing Fee") shall
be equal to one-twelfth of the product of (a) the Servicing Fee Rate and (b) the
Adjusted Invested Amount, if any, as of the last day of the Monthly Period
preceding such Distribution Date (the amount calculated pursuant to this clause
(b) is referred to as the "Servicing Base Amount"); provided, however, with
respect to the first Distribution Date, the Monthly Servicing Fee (the "Initial
Servicing Fee") shall be equal to $333,333.33. On each Distribution Date, but
only if the Seller or The Bank of New York is the Servicer, Servicer Interchange
with respect to the related Monthly Period that is on deposit in the Collection
Account shall be withdrawn from the Collection Account and paid to the Servicer
in payment of a portion of the Monthly Servicing Fee with respect to such
Monthly Period. In the case of any insufficiency of Servicer Interchange on
deposit in the Collection Account, a portion of the Monthly Servicing Fee with
respect to such Monthly Period will not be paid to the extent of such
insufficiency of Servicer Interchange. The share of the Monthly Servicing Fee
allocable to the Class A Certificateholders (after giving effect to the
distribution of Servicer Interchange, if any, to the Servicer) with respect to
any Distribution Date (the "Class A Servicing Fee") shall be equal to
one-twelfth of the product of (a) the Class A Floating Percentage, (b) the Net
Servicing Fee Rate and (c) the Servicing Base Amount; provided, however, that
with respect to the first Distribution Date, the Class A Servicing Fee shall be
equal to $169,270.83. The share of the Monthly Servicing Fee allocable to the
Class B Certificateholders (after giving effect to the distribution of Servicer
Interchange, if any, to the Servicer) with respect to any Distribution Date (the
"Class B Servicing Fee") shall be equal to one-twelfth of the product of (a) the
Class B Floating Percentage, (b) the Net Servicing Fee Rate and (c) the
Servicing Base Amount; provided, however, that with respect to the first
Distribution Date, the Class B Servicing Fee shall be equal to $20,833.33. The
share of the Monthly Servicing Fee allocable to the Collateral Interest Holder
(after giving effect to the distribution of Servicer Interchange, if any, to the
Servicer) with respect to such Distribution Date (the "Collateral Servicing
Fee") shall be equal to one-twelfth of the product of (c) the Collateral
Floating Percentage, (b) the Net Servicing Fee Rate and (c) the Servicing Base
Amount; provided, however, that with respect to the first Distribution Date, the
Collateral Servicing Fee shall be equal to $18,229.17. The remainder of the
Servicing Fee shall be paid by the Seller or the Certificateholders of other
Series (as provided in the related Supplements) and in no event shall the Trust,
the Trustee, the Series 2000-4 Certificateholders or the Collateral Interest
Holder be liable for the share of the Servicing Fee to be paid by the Seller or
the Certificateholders of any other Series. The (i) Class A Servicing Fee shall
be payable to the Servicer solely to the extent amounts are available for
distribution in respect thereof pursuant to Section 4.05(a)(iii), 4.07(a) or
4.08(a); (ii) Class B Servicing Fee shall be payable solely to the extent
amounts are available for distribution in respect thereof pursuant to Section
4.05(b)(ii), 4.07(c) or 4.08(b); and (iii) Collateral Servicing Fee shall be
19
payable solely to the extent amounts are available for distribution in respect
thereof pursuant to Section 4.05(c)(i) or 4.07(f).
ARTICLE IV
Rights of Series 2000-4 Certificateholders and
Collateral Interest Holder and
Allocation and Application of Collections
Section 4.01. Collections and Allocations. The Servicer will apply, or will
instruct the Trustee to apply, all Collections and other funds on deposit in the
Collection Account that are allocated to the Series 2000-4 Certificates and the
Collateral Interest as described in this Article IV.
Section 4.02. Determination of Monthly Interest.
(a) The amount of monthly interest ("Class A Monthly Interest")
distributable from the Collection Account with respect to the Class A
Certificates on any Distribution Date shall be an amount equal to the product of
(i) a fraction, the numerator of which is the actual number of days in the
period from and including the preceding Distribution Date to but excluding such
Distribution Date and the denominator of which is 360, (ii) the Class A
Certificate Rate for the related Interest Period and (iii) the outstanding
principal balance of the Class A Certificates as of the preceding Record Date;
provided, however, that, with respect to the first Distribution Date, Class A
Monthly Interest shall be equal to the interest accrued on the initial principal
amount of the Class A Certificates at the Class A Certificate Rate for the
period from and including the Closing Date to but excluding the first
Distribution Date.
On the Determination Date preceding each Payment 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 Payment Date
over (y) the aggregate amount of funds allocated and available to pay such Class
A Monthly Interest on such Payment Date. If the Class A Interest Shortfall with
respect to any Payment Date is greater than zero, an additional amount ("Class A
Additional Interest") equal to the product of (i) a fraction, the numerator of
which is the actual number of days in the period from and including the
preceding Distribution Date to but excluding such Distribution Date and the
denominator of which is 360, (ii) the Class A Penalty Rate and (iii) such Class
A Interest Shortfall (or the portion thereof which has not been paid to Class A
Certificateholders) shall be payable as provided herein with respect to the
Class A Certificates on each Distribution Date following such Payment Date to
and including the Payment Date on which such Class A Interest Shortfall is paid
to Class A Certificateholders. Notwithstanding anything to the contrary herein,
Class A Additional Interest shall be payable or distributed to Class A
Certificateholders only to the extent permitted by applicable law.
(b) The amount of monthly interest ("Class B Monthly Interest")
distributable from the Collection Account with respect to the Class B
Certificates on any Distribution Date shall be an amount equal to the product of
(i) a fraction, the numerator of which is the actual number of days in the
period from and including the preceding Distribution Date to but excluding such
Distribution Date and the denominator of which is 360, (ii) the Class B
20
Certificate Rate for the related Interest Period and (iii) the outstanding
principal balance of the Class B Certificates as of the preceding Record Date;
provided, however, that, with respect to the first Distribution Date, Class B
Monthly Interest shall be equal to the interest accrued on the initial principal
amount of the Class B Certificates at the Class B Certificate Rate for the
period from and including the Closing Date to but excluding the first
Distribution Date.
On the Determination Date preceding each Payment 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 Payment Date
over (y) the aggregate amount of funds allocated and available to pay such Class
B Monthly Interest on such Payment Date. If the Class B Interest Shortfall with
respect to any Payment Date is greater than zero, an additional amount ("Class B
Additional Interest") equal to the product of (i) a fraction, the numerator of
which is the actual number of days from and including the preceding Distribution
Date to but excluding such Distribution Date and the denominator of which is
360, (ii) the Class B Penalty Rate and (iii) such Class B Interest Shortfall (or
the portion thereof which has not been paid to Class B Certificateholders) shall
be payable as provided herein with respect to the Class B Certificates on each
Distribution Date following such Payment Date to and including the Payment Date
on which such Class B Interest Shortfall is paid to Class B Certificateholders.
Notwithstanding anything to the contrary herein, Class B Additional Interest
shall be payable or distributed to Class B Certificateholders only to the extent
permitted by applicable law.
(c) The amount of monthly interest ("Collateral Minimum Monthly Interest")
distributable from the Collection Account with respect to the Collateral
Interest on any Distribution Date shall be an amount equal to the product of (i)
the Collateral Interest Minimum Rate in effect for the related Interest Period,
(ii) a fraction, the numerator of which is the actual number of days from and
including the preceding Distribution Date to but excluding such Distribution
Date and the denominator of which is 360 and (iii) the outstanding principal
balance of the Collateral Interest as of the preceding Record Date; provided,
however, that, with respect to the first Distribution Date, Collateral Minimum
Monthly Interest shall be equal to the interest accrued on the Collateral
Initial Invested Amount at the Collateral Interest Minimum Rate for the period
from the Closing Date to but excluding the initial Distribution Date.
On the Determination Date preceding each Distribution Date, the Servicer
shall determine the excess, if any (the "Collateral Interest Shortfall"), of (x)
the Collateral Minimum Monthly Interest for such Distribution Date over (y) the
aggregate amount of funds allocated and available to pay such Collateral Minimum
Monthly Interest on such Distribution Date. If the Collateral Interest Shortfall
for any Distribution Date is greater than zero, an additional amount
("Collateral Additional Interest") equal to the product of (i) a fraction, the
numerator of which is the actual number of days from and including the preceding
Distribution Date to but excluding such Distribution Date and the denominator of
which is 360, (ii) the Collateral Interest Minimum Rate in effect for the
related Interest Period and (iii) such Collateral Interest Shortfall (or the
portion thereof which has not been paid to the Collateral Interest Holder) shall
be payable as provided herein with respect to the Collateral Interest on each
Distribution Date following such Distribution Date to and including the
Distribution Date on which such Collateral Interest Shortfall is paid to the
Collateral Interest Holder. Notwithstanding anything to the contrary herein,
Collateral Additional Interest shall be payable or distributed to the Collateral
Interest Holder only to the extent permitted by applicable law.
21
Section 4.03. Determination of Monthly Principal; Series 2000-4 Accounts.
(a) The amount of monthly principal ("Class A Monthly Principal")
distributable from the Collection Account with respect to the Class A
Certificates on each Distribution Date, beginning with the first to occur of (i)
the first Special Payment Date, if any, and (ii) the first Distribution Date
with respect to the Accumulation Period, shall be equal to the least of (x) the
Available Investor Principal Collections on deposit in the Collection Account
with respect to such Distribution Date, (y) for each Distribution Date with
respect to the Accumulation Period (and on or prior to the Expected Final
Payment Date), the Controlled Deposit Amount for such Distribution Date and (z)
the Class A Adjusted Invested Amount on such Distribution Date.
(b) The amount of monthly principal ("Class B Monthly Principal")
distributable from the Collection Account with respect to the Class B
Certificates on each Distribution Date, beginning with the first to occur of (i)
the first Special Payment Date, if any, on which the Class A Invested Amount is
paid in full, and (ii) the first Distribution Date with respect to the
Accumulation Period on which the Principal Funding Account Balance is at least
equal to the Class A Invested Amount, shall be equal to the least of (x) the
Available Investor Principal Collections on deposit in the Collection Account
with respect to such Distribution Date (minus the portion of such Available
Investor Principal Collections applied to Class A Monthly Principal with respect
to such Distribution Date), (y) for each Distribution Date with respect to the
Accumulation Period, the Controlled Deposit Amount for such Distribution Date
(minus the Class A Monthly Principal with respect to such Distribution Date) and
(z) the Class B Adjusted Invested Amount on such Distribution Date.
(c) The amount of monthly principal ("Collateral Monthly Principal")
distributable from the Collection Account with respect to the Collateral
Interest on each Distribution Date, beginning with the first to occur of (i) the
first Special Payment Date, if any, on which the Class B Invested Amount is paid
in full, and (ii) the first Distribution Date with respect to the Accumulation
Period on which the Principal Funding Account Balance is at least equal to the
sum of the Class A Invested Amount and the Class B Invested Amount, shall be
equal to the least of (x) the Available Investor Principal Collections on
deposit in the Collection Account with respect to such Distribution Date (minus
the portion of such Available Investor Principal Collections applied to Class A
Monthly Principal and Class B Monthly Principal with respect to such
Distribution Date), (y) for each Distribution Date with respect to the
Accumulation Period, the Controlled Deposit Amount for such Distribution Date
(minus the Class A Monthly Principal and Class B Monthly Principal with respect
to such Distribution Date) and (z) the Collateral Adjusted Invested Amount on
such Distribution Date.
(d) (i) The Servicer, for the benefit of the Series 2000-4 Holders,
shall establish and maintain in the name of the Trustee, on behalf of the
Trust, an Eligible Deposit Account (the "Principal Funding Account"),
bearing a designation clearly indicating that the funds deposited therein
are held for the benefit of Series 2000-4 Holders. The Principal Funding
Account shall initially be established with The Bank of New York.
22
(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. All such Eligible Investments shall
be held by the Trustee for the benefit of the Series 2000-4 Holders;
provided that on each Distribution Date all interest and other investment
income (net of losses and investment expenses) ("Principal Funding
Investment Proceeds") on funds on deposit therein shall be applied as set
forth in paragraph (iii) below. Funds on deposit in the Principal Funding
Account shall be invested in Eligible Investments that will mature so that
such funds will be available at the close of business on the Transfer Date
preceding the following Distribution Date. The Trustee shall (i) hold each
Eligible Investment that constitutes investment property through a
securities intermediary, which securities intermediary shall agree with the
Trustee that (A) such investment property shall at all times be credited to
a securities account of the Trustee, (B) such securities intermediary shall
treat the Trustee as entitled to exercise the rights that comprise each
financial asset credited to such securities account, (C) all property
credited to such securities account shall be treated as a financial asset,
(D) such securities intermediary shall comply with entitlement orders
originated by the Trustee without the further consent of any other person
or entity, (E) such securities intermediary shall not agree with any person
other than the Trustee to comply with entitlement orders originated by such
other person, (F) such securities intermediary waives any lien on, security
interest in, or right of set-off with respect to any property credited to
such securities account, and (G) such agreement shall be governed by the
laws of the State of New York; and (ii) maintain possession of each other
Eligible Investment not described in clause (i) above. Terms used in clause
(i) above that are defined in the New York UCC and not otherwise defined
herein shall have the meaning set forth in the New York UCC. No Eligible
Investment shall be disposed of prior to its maturity; provided, however,
that the Trustee may sell, liquidate or dispose of an Eligible Investment
before its maturity, if so directed by the Servicer, the Servicer having
reasonably determined that (i) the interest of the Series 2000-4 Holders
may be adversely affected if such Eligible Investment is held to its
maturity and (ii) the primary purpose of such sale, liquidation or
disposition is not recognizing gains or decreasing losses resulting from
market value changes. Unless the Servicer directs otherwise, funds
deposited in the Principal Funding Account on a Transfer Date (which
immediately precedes a Payment Date) upon the maturity of any Eligible
Investments are not required to be invested overnight.
(iii) On each Distribution Date with respect to the Accumulation
Period, the Servicer shall direct the Trustee to withdraw from the
Principal Funding Account and deposit into the Collection Account all
Principal Funding Investment Proceeds then on deposit in the Principal
Funding Account and such Principal Funding Investment Proceeds shall be
treated as a portion of Class A Available Funds, Class B Available Funds
and Collateral Available Funds.
(iv) Reinvested interest and other investment income on funds
deposited in the Principal Funding Account shall not be considered to be
principal amounts on deposit therein for purposes of this Supplement.
23
(e) (i) The Trustee shall possess all right, title and interest in all
funds on deposit from time to time in the Principal Funding Account and in
all proceeds thereof. The Principal Funding Account shall be under the sole
dominion and control of the Trustee for the benefit of the Series 2000-4
Holders. If, at any time, the Principal Funding Account 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 Principal
Funding Account meeting the conditions specified in paragraph (d)(i) above
as an Eligible Deposit Account and shall transfer any cash and/or any
investments to such new Principal Funding Account.
(ii) Pursuant to the authority granted to the Servicer in Section
3.01(b) 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 Principal Funding Account for the
purposes of carrying out the Servicer's or Trustee's duties hereunder.
Pursuant to the authority granted to the Paying Agent in Section 5.01 of
this Supplement and Section 6.07 of the Agreement, the Paying Agent shall
have the power, revocable by the Trustee, to withdraw funds from the
Principal Funding Account for the purpose of making distributions to the
Series 2000-4 Holders.
(f) The Accumulation Period is scheduled to commence at the close of
business on the last day of the September 2004 Monthly Period; provided,
however, that if the Accumulation Period Length on any Determination Date
(determined as described below) is less than twelve (12) months, upon notice to
the Trustee, the Seller and each Rating Agency, the Servicer, at its option, may
elect to modify the date on which the Accumulation Period actually commences to
the last Business Day of any month that precedes the month that is the number of
months prior to the Expected Final Payment Date equal to the Accumulation Period
Length; provided, however, that (i) the length of the Accumulation Period will
not be less than one month; and (ii) notwithstanding any other provision of this
Supplement to the contrary, no election to postpone the commencement of the
Accumulation Period shall be made after a Pay Out Event (as defined in the
related Supplement) shall have occurred and is continuing with respect to any
other Series. On each Determination Date, the Servicer will determine the
"Accumulation Period Length" which will equal the number of months such that the
Accumulation Period Amount for the Monthly Period immediately preceding the
Expected Final Payment Date, when aggregated with the Accumulation Period
Amounts for each preceding Monthly Period, will equal or exceed the Initial
Invested Amount. Any notice by the Servicer electing to modify the commencement
of the Accumulation Period pursuant to this subsection (f) shall specify (i) the
Accumulation Period Length, (ii) the commencement date of the Accumulation
Period and (iii) the Controlled Accumulation Amount with respect to each Monthly
Period during the Accumulation Period.
Section 4.04. Required Amount.
(a) With respect to each Distribution Date, on the related Determination
Date, the Servicer shall determine the amount (the "Class A Required Amount"),
if any, by which (x)
24
the sum of (i) Class A Monthly Interest for such Distribution Date, (ii) any
Class A Outstanding Monthly Interest, (iii) any Class A Additional Interest for
such Distribution Date and any Class A Outstanding Additional Interest, (iv) the
Class A Servicing Fee for such Distribution Date, (v) any Class A Servicing Fee
previously due but not paid to the Servicer, (vi) the Class A Investor Default
Amount, if any, for such Distribution Date, (vii) the Net Swap Payment, if any,
for such Distribution Date and (viii) the Net Swap Payments, if any, due but not
paid on any prior Distribution Date exceeds (y) the Class A Available Funds. In
the event that the Class A Required Amount for such Distribution Date is greater
than zero, the Servicer shall give written notice to the Trustee of such
positive Class A Required Amount on the date of computation and all or a portion
of the Excess Spread and the Excess Finance Charges allocable to Series 2000-4
with respect to the related Monthly Period in an amount equal to the Class A
Required Amount for such Distribution Date shall be distributed from the
Collection Account on such Distribution Date pursuant to Section 4.07(a). In the
event that the Class A Required Amount for such Distribution Date exceeds the
amount of Excess Spread and the amount of Excess Finance Charges allocable to
Series 2000-4 with respect to the related Monthly Period, all or a portion of
the Reallocated Principal Collections with respect to such Monthly Period in an
amount equal to such excess shall be distributed from the Collection Account on
such Distribution Date pursuant to Section 4.08(a).
(b) With respect to each Distribution Date, on the related Determination
Date, the Servicer shall determine the amount (the "Class B Required Amount")
equal to the sum of (x) the amount, if any, by which (A) the sum of (i) Class B
Monthly Interest for such Distribution Date, (ii) any Class B Outstanding
Monthly Interest, (iii) any Class B Additional Interest for such Distribution
Date and any Class B Outstanding Additional Interest, (iv) the Class B Servicing
Fee for such Distribution Date and (v) any Class B Servicing Fee previously due
but not paid to the Servicer exceeds (B) the Class B Available Funds and (y) the
Class B Investor Default Amount for such Distribution Date. In the event that
the Class B Required Amount for such Distribution Date exceeds the portion of
Excess Spread and Excess Finance Charges allocated to Series 2000-4 with respect
to such Monthly Period and not used to fund the Class A Required Amount, then a
portion of the Reallocated Principal Collections with respect to such Monthly
Period shall be distributed from the Collection Account on such Distribution
Date pursuant to Section 4.08(b).
Section 4.05. Application of Class A Available Funds, Class B Available
Funds, Collateral Available Funds and Available Investor Principal Collections.
The Servicer shall apply (if the Seller is the Servicer and the Collection
Account is maintained with the Seller) or shall cause the Trustee to apply, on
each Distribution Date, Class A Available Funds, Class B Available Funds,
Collateral Available Funds, and Available Investor Principal Collections on
deposit in the Collection Account with respect to such Distribution Date to make
the following distributions:
(a) On each Distribution Date, an amount equal to the Class A
Available Funds with respect to such Distribution Date will be distributed
in the following priority:
(i) an amount equal to Class A Monthly Interest for such Distribution
Date, plus the amount of any Class A Outstanding
25
Monthly Interest, plus the amount of any Class A Additional Interest for
such Distribution Date and any Class A Outstanding Additional Interest,
shall be distributed to the Paying Agent with respect to the Class A
Certificates for payment to the Class A Certificateholders;
(ii) an amount equal to the Net Swap Payment, if any, for such
Distribution Date, plus the amount of any Net Swap Payments previously due
but not paid to the Swap Counterparty shall be distributed to the Swap
Counterparty;
(iii) an amount equal to the Class A Servicing Fee for such
Distribution Date, plus the amount of any Class A Servicing Fee previously
due but not distributed to the Servicer on a prior Distribution Date, shall
be distributed to the Servicer (unless such amount has been netted against
deposits to the Collection Account in accordance with Section 4.03 of the
Agreement);
(iv) an amount equal to the Class A Investor Default Amount for such
Distribution Date shall be treated as a portion of Available Investor
Principal Collections for such Distribution Date; and
(v) the balance, if any, shall constitute Excess Spread and shall be
allocated and distributed as set forth in Section 4.07.
(b) On each Distribution Date, an amount equal to the Class B
Available Funds with respect to such Distribution Date will be distributed
in the following priority:
(i) an amount equal to Class B Monthly Interest for such Distribution
Date, plus the amount of any Class B Outstanding Monthly Interest, plus the
amount of any Class B Additional Interest for such Distribution Date and
any Class B Outstanding Additional Interest, shall be distributed to the
Paying Agent with respect to the Class B Certificates for payment to the
Class B Certificateholders;
(ii) an amount equal to the Class B Servicing Fee for such
Distribution Date, plus the amount of any Class B Servicing Fee previously
due but not distributed to the Servicer on a prior Distribution Date, shall
be distributed to the Servicer (unless such amount has been netted against
deposits to the Collection Account in accordance with Section 4.03 of the
Agreement); and
(iii) the balance, if any, shall constitute Excess Spread and shall be
allocated and distributed as set forth in Section 4.07.
(c) On each Distribution Date, an amount equal to the Collateral Available
Funds with respect to such Distribution Date will be distributed in the
following priority:
(i) an amount equal to the Collateral Servicing Fee for such
Distribution Date, plus the amount of any Collateral Servicing Fee
previously due but not distributed to the Servicer on a prior Distribution
Date, shall be distributed to the Servicer (unless such amount has been
netted against deposits to the Collection Account in accordance with
Section 4.03 of the Agreement); and
26
(ii) the balance, if any, shall constitute Excess Spread and shall be
allocated and distributed as set forth in Section 4.07.
(d) On each Distribution Date with respect to the Revolving Period, an
amount equal to the Available Investor Principal Collections deposited in the
Collection Account for the related Monthly Period shall be treated as Shared
Principal Collections and applied in accordance with Section 4.04 of the
Agreement.
(e) On each Distribution Date with respect to the Accumulation Period or
the Early Amortization Period, an amount equal to the Available Investor
Principal Collections deposited in the Collection Account for the related
Monthly Period will be distributed in the following priority:
(i) an amount equal to Class A Monthly Principal for such Distribution
Date, up to the Class A Adjusted Invested Amount on such Distribution Date,
shall be deposited in the Principal Funding Account or, if such
Distribution Date is a Special Payment Date on which the Principal Funding
Account Balance is zero, shall be distributed to the Paying Agent for
payment to the Class A Certificateholders;
(ii) after giving effect to paragraph (i) above, an amount equal to
Class B Monthly Principal for such Distribution Date, up to the Class B
Adjusted Invested Amount on such Distribution Date, shall be deposited in
the Principal Funding Account or, if such Distribution Date is a Special
Payment Date on which the Principal Funding Account Balance is zero, shall
be distributed to the Paying Agent for payment to the Class B
Certificateholders;
(iii) after giving effect to paragraphs (i) and (ii) above, an amount
equal to Collateral Monthly Principal for such Distribution Date, up to the
Collateral Adjusted Invested Amount on such Distribution Date, shall be
deposited in the Principal Funding Account or, if such Distribution Date is
a Special Payment Date on which the Principal Funding Account Balance is
zero, shall be distributed to the Paying Agent for payment to the
Collateral Interest Holder; and
(iv) for each Distribution Date, after giving effect to paragraphs
(i), (ii) and (iii) above, an amount equal to the balance, if any, of such
Available Investor Principal Collections then on deposit in the Collection
Account shall be treated as Shared Principal Collections and applied in
accordance with Section 4.04 of the Agreement.
Section 4.06. Defaulted Amounts; Investor Charge-Offs.
(a) On each Determination Date, the Servicer shall calculate the Class A
Investor Default Amount, if any, for the related Distribution Date. If, on any
Distribution Date, the Class A Required Amount for such Distribution Date
exceeds the sum of (x) the amount of Reallocated Principal Collections with
respect to the related Monthly Period and (y) the amount of Excess Spread and
the Excess Finance Charges allocable to Series 2000-4 with respect to such
27
Monthly Period, the Collateral Invested Amount will be reduced by the amount of
such excess, but not by more than the excess of the Class A Investor Default
Amount for the related Distribution Date over the amount of Reallocated
Principal Collections and the amount of Excess Spread and Excess Finance Charges
used to fund the Class A Investor Default Amount for such Distribution Date. In
the event that such reduction would cause the Collateral Invested Amount to be a
negative number, the Collateral Invested Amount will be reduced to zero and the
Class B Invested Amount shall be reduced by the amount by which the Collateral
Invested Amount would have been reduced below zero, but not by more than the
excess, if any, of the Class A Investor Default Amount for such Distribution
Date over the amount of such reduction, if any, of the Collateral Invested
Amount with respect to such Distribution Date and the amount of Reallocated
Principal Collections and the amount of Excess Spread and Excess Finance Charges
used to fund the Class A Investor Default Amount for such Distribution Date. In
the event that such reduction would cause the Class B Invested Amount to be a
negative number, the Class B Invested Amount shall be reduced to zero, and the
Class A Invested Amount shall be reduced by the amount by which the Class B
Invested Amount would have been reduced below zero, but not by more than the
excess, if any, of the Class A Investor Default Amount for such Distribution
Date over the aggregate amount of the reductions, if any, of the Collateral
Invested Amount and the Class B Invested Amount for such Distribution Date and
the amount of Reallocated Principal Collections and the amount of Excess Spread
and Excess Finance Charges used to fund the Class A Investor Default Amount for
such Distribution Date (a "Class A Investor Charge-Off"). Class A Investor
Charge-Offs shall thereafter be reimbursed and the Class A Invested Amount
increased (but not by an amount in excess of the aggregate unreimbursed Class A
Investor Charge-Offs) on any Distribution Date by the amount of Excess Spread
and Excess Finance Charges allocated and available for that purpose pursuant to
Section 4.07(b).
(b) On each Determination Date, the Servicer shall calculate the Class B
Required Amount, if any, for the related Distribution Date. If, on any
Distribution Date, the Class B Required Amount for such Distribution Date
exceeds the sum of (x) the amount of Excess Spread and Excess Finance Charges
allocated to Series 2000-4 with respect to the related Monthly Period which are
not used to fund the Class A Required Amount and Class A Investor Charge-Offs on
the related Distribution Date and (y) the amount of Reallocated Principal
Collections which are available to fund the Class B Required Amount on such
Distribution Date pursuant to Section 4.08(b), then the Collateral Invested
Amount shall be reduced by the amount of such excess, but not by more than the
excess of the Class B Investor Default Amount for such Distribution Date over
the amount of Reallocated Principal Collections and the amount of Excess Spread
and Excess Finance Charges used to fund the Class B Investor Default Amount for
such Distribution Date. In the event that such reduction would cause the
Collateral Invested Amount to be a negative number, the Collateral Invested
Amount shall be reduced to zero, and the Class B Invested Amount shall be
reduced by the amount by which the Collateral Invested Amount would have been
reduced below zero, but not by more than the excess, if any, of the Class B
Investor Default Amount for such Distribution Date over the amount of such
reduction, if any, of the Collateral Invested Amount with respect to such
Distribution Date and the amount of Reallocated Principal Collections and the
amount of Excess Spread and Excess Finance Charges used to fund the Class B
Investor Default Amount for such Distribution Date (a "Class B Investor
Charge-Off"). Class B Investor Charge-Offs shall thereafter be reimbursed and
the Class B Invested Amount increased (but not by an amount in excess of the
aggregate
28
unreimbursed Class B Investor Charge-Offs) on any Distribution Date by the
amount of Excess Spread and Excess Finance Charges allocated and available for
that purpose pursuant to Section 4.07(d).
(c) If, on any Distribution Date, Reallocated Principal Collections for the
related Monthly Period are applied pursuant to Section 4.08(a) or (b), the
Collateral Invested Amount shall be reduced by the amount of such Reallocated
Principal Collections. In the event that such reduction would cause the
Collateral Invested Amount to be a negative number, the Collateral Invested
Amount shall be reduced to zero, and the Class B Invested Amount shall be
reduced by the amount by which the Collateral Invested Amount would have been
reduced below zero.
(d) If, on any Distribution Date, the Collateral Investor Default Amount
exceeds the amount of Excess Spread and Excess Finance Charges available to fund
the Collateral Investor Default Amount pursuant to Section 4.07(g) on such
Distribution Date, then the Collateral Invested Amount shall be reduced by the
amount of such excess; provided, however, that the Collateral Invested Amount
shall not be reduced below zero.
Section 4.07. Excess Spread; Excess Finance Charges. The Servicer shall
apply (if the Seller is the Servicer and the Collection Account is maintained
with the Seller) or shall cause the Trustee to apply, on each Distribution Date,
Excess Spread and Excess Finance Charges allocated to Series 2000-4 with respect
to the related Monthly Period, to make the following distributions in the
following priority:
(a) an amount equal to the Class A Required Amount, if any, with
respect to such Distribution Date shall be distributed by the Trustee to
fund any deficiency pursuant to Sections 4.05(a)(i), (ii), (iii) and (iv);
provided that in the event the Class A Required Amount for such
Distribution Date exceeds the amount of Excess Spread and Excess Finance
Charges allocated to Series 2000-4, such Excess Spread and Excess Finance
Charges shall be applied first to pay amounts due with respect to such
Distribution Date pursuant to Section 4.05(a)(i), second to pay the Net
Swap Payment, if any, pursuant to Section 4.05(a)(ii), third to pay the
Class A Servicing Fee pursuant to Section 4.05(a)(iii) and fourth to pay
the Class A Investor Default Amount for such Distribution Date pursuant to
Section 4.05(a)(iv);
(b) an amount equal to the aggregate amount of Class A Investor
Charge-Offs which have not been previously reimbursed as provided in
Section 4.06(a) (after giving effect to the allocation on such Distribution
Date of any amount for that purpose pursuant to Section 4.06(a)) shall be
treated as a portion of Available Investor Principal Collections for such
Distribution Date;
(c) an amount equal to the Class B Required Amount, if any, with
respect to such Distribution Date shall be distributed by the Trustee (I)
to fund any deficiency pursuant to Sections 4.05(b)(i) and (ii) and (II)
for application, up to the Class B Investor Default Amount, as a portion of
Available Investor Principal Collections for such Distribution Date;
provided that in the event the Class B Required Amount for such
Distribution Date exceeds the amount of Excess Spread and Excess Finance
Charges
29
allocated to Series 2000-4 and available to pay such amount pursuant to
this clause (c), such Excess Spread and Excess Finance Charges shall be
applied first to pay amounts due with respect to such Distribution Date
pursuant to Section 4.05(b)(i), second to pay the Class B Servicing Fee
pursuant to Section 4.05(b)(ii) and third as a portion of Available
Investor Principal Collections for such Distribution Date pursuant to
clause (II) above;
(d) an amount equal to the aggregate amount by which the Class B
Invested Amount has been reduced pursuant to clauses (c), (d) and (e) of
the definition of "Class B Invested Amount" in Section 2.01 of this
Supplement (but not in excess of the aggregate amount of such reductions
which have not been previously reimbursed) shall be treated as a portion of
Available Investor Principal Collections for such Distribution Date;
(e) an amount equal to the sum of Collateral Minimum Monthly Interest
for such Distribution Date, plus the amount of any Collateral Outstanding
Monthly Interest, plus the amount of any Collateral Additional Interest for
such Distribution Date and any Collateral Outstanding Additional Interest
shall be distributed to the Collateral Interest Holder;
(f) an amount equal to the Collateral Servicing Fee due but not paid
to the Servicer either on such Distribution Date or a prior Distribution
Date shall be paid to the Servicer;
(g) an amount equal to the Collateral Investor Default Amount for such
Distribution Date shall be treated as a portion of Available Investor
Principal Collections with respect to such Distribution Date;
(h) an amount equal to the aggregate amount by which the Collateral
Invested Amount has been reduced pursuant to clause (c) of the definition
of "Collateral Invested Amount" (but not in excess of the aggregate amount
of such reductions which have not been previously reimbursed) shall be
treated as a portion of Available Investor Principal Collections with
respect to such Distribution Date;
(i) on each Distribution Date from and after the Reserve Account
Funding Date, but prior to the date on which the Reserve Account terminates
as described in Section 4.11(f), an amount up to the excess, if any, of the
Required Reserve Account Amount over the Available Reserve Account Amount
shall be deposited into the Reserve Account; and
(j) the balance, if any, will be distributed to the Collateral
Interest Holder.
Section 4.08. Reallocated Principal Collections. The Servicer shall apply
(if the Seller is the Servicer and the Collection Account is maintained with the
Seller) or shall cause the Trustee to apply on each Distribution Date
Reallocated Principal Collections (applying all such Collections with
30
respect to the Collateral Invested Amount prior to applying any such Collections
with respect to the Class B Invested Amount and applying no such Collections
with respect to the Class B Invested Amount pursuant to clause (b) below) with
respect to such Distribution Date, to make the following distributions in the
following priority:
(a) an amount equal to the excess, if any, of (i) the Class A Required
Amount, if any, with respect to such Distribution Date over (ii) the amount
of Excess Spread and Excess Finance Charges allocated to Series 2000-4 with
respect to the related Monthly Period, shall be distributed by the Trustee
to fund any deficiency pursuant to Sections 4.05(a)(i), (ii), (iii) and
(iv); provided that, in the event the Class A Required Amount for such
Distribution Date exceeds the sum of the amount of Excess Spread and Excess
Finance Charges allocated to Series 2000-4 and the amount of Reallocated
Principal Collections for the related Monthly Period, such Excess Spread
and Excess Finance Charges allocated to Series 2000-4 and Reallocated
Principal Collections shall be applied first to pay amounts due with
respect to such Distribution Date pursuant to Section 4.05(a)(i), second to
pay the Net Swap Payment, if any, pursuant to Section 4.05(a)(ii), third to
pay the Class A Servicing Fee pursuant to Section 4.05(a)(iii) and fourth
to pay the Class A Investor Default Amount for such Distribution Date
pursuant to Section 4.05(a)(iv);
(b) an amount equal to the excess, if any, of (i) the Class B Required
Amount, if any, with respect to such Distribution Date over (ii) the amount
of Excess Spread and Excess Finance Charges to be allocated and available
to the holders of the Class B Certificates pursuant to Section 4.07(c) on
such Distribution Date, shall be distributed by the Trustee to fund any
deficiency pursuant to Sections 4.05(b)(i) and (ii) and Section
4.07(c)(II); provided that, in the event the Class B Required Amount for
such Distribution Date exceeds the sum of the amount of Excess Spread and
Excess Finance Charges to be allocated to the holders of the Class B
Certificates on such Distribution Date and the amount of Reallocated
Principal Collections (other than Reallocated Principal Collections
distributed pursuant to clause (a) above) for the related Monthly Period,
such Excess Spread and Excess Finance Charges and such Reallocated
Principal Collections shall be applied first to pay the amounts due with
respect to such Distribution Date pursuant to Section 4.05(b)(i), second to
pay the Class B Servicing Fee pursuant to Section 4.05(b)(ii) and third to
apply any remaining amount as a portion of Available Investor Principal
Collections for such Distribution Date pursuant to Section 4.07(c)(II); and
(c) the balance, if any, of such Reallocated Principal Collections
shall be treated as a portion of Available Investor Principal Collections
to be applied in accordance with Sections 4.05(d) and (e).
Section 4.09. Excess Finance Charges. Series 2000-4 shall be included in
Group One. Subject to Section 4.05 of the Agreement, Excess Finance Charges with
respect to the Series in Group One for any Distribution Date will be allocated
to Series 2000-4 in an amount equal to the product of (x) the aggregate amount
of Excess Finance Charges with respect to all the Series in Group One for such
Distribution Date and (y) a fraction, the numerator of which is the Finance
Charge Shortfall for Series 2000-4 for such Distribution Date and the
denominator of which is the aggregate amount of Finance Charge Shortfalls for
all the Series in Group One for such Distribution Date. The amount of Excess
Finance Charges for Series 2000-4 for any
31
Distribution Date shall be specified in subsection 3.02(a)(v) of the Transfer
Agreement. On each Distribution Date, the Trustee shall deposit into the
Collection Account for application in accordance with Section 4.05 of the
Agreement the aggregate amount of "Excess Finance Charges" received by the
Trustee pursuant to the Transfer Agreement on such date. The "Finance Charge
Shortfall" for Series 2000-4 for any Distribution Date will be equal to the
excess, if any, of (a) the full amount required to be paid, without duplication,
pursuant to Sections 4.05(a), 4.05(b) and 4.05(c) and Sections 4.07(a) through
(i) on such Distribution Date over (b) the sum of (i) Class A Available Funds,
(ii) Class B Available Funds and (iii) Collateral Available Funds, each with
respect to the related Monthly Period.
Section 4.10. Shared Principal Collections. Subject to Section 4.04 of the
Agreement, Shared Principal Collections for any Distribution Date will be
allocated to Series 2000-4 in an amount equal to the product of (x) the
aggregate amount of Shared Principal Collections with respect to all Series for
such Distribution Date and (y) a fraction, the numerator of which is the
Principal Shortfall for Series 2000-4 for such Distribution Date and the
denominator of which is the aggregate amount of Principal Shortfalls for all the
Series which are Principal Sharing Series for such Distribution Date. The
"Principal Shortfall" for Series 2000-4 will be equal to (a) for any
Distribution Date with respect to the Revolving Period, zero, (b) for any
Distribution Date with respect to the Accumulation Period, the excess, if any,
of the Controlled Deposit Amount with respect to such Distribution Date, over
the amount of Available Investor Principal Collections for such Distribution
Date (excluding any portion thereof attributable to Shared Principal
Collections) and (c) for any Distribution Date with respect to the Early
Amortization Period, the excess, if any, of the Invested Amount over the amount
of Available Investor Principal Collections for such Distribution Date
(excluding any portion thereof attributable to Shared Principal Collections).
Section 4.11. Reserve Account.
(a) The Servicer shall establish and maintain, in the name of the Trustee,
on behalf of the Trust, for the benefit of the Series 2000-4 Holders, an
Eligible Deposit Account (the "Reserve Account") bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2000-4 Holders and the Swap Counterparty. The Reserve Account shall
initially be established with The Bank of New York. The Trustee shall possess
all right, title and interest in all funds on deposit from time to time in the
Reserve Account and in all proceeds thereof. The Reserve Account shall be under
the sole dominion and control of the Trustee for the benefit of the Series
2000-4 Holders. If at any time the Reserve Account 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 Reserve Account meeting
the conditions specified above as an Eligible Deposit Account, and shall
transfer any cash and/or any investments to such new Reserve Account. The
Trustee, at the direction of the Servicer, shall (i) make withdrawals from the
Reserve Account from time to time in an amount up to the Available Reserve
Account Amount at such time, for the purposes set forth in this Supplement, and
(ii) on each Distribution Date (from and after the Reserve Account Funding Date)
prior to the termination of the Reserve Account make a deposit into the Reserve
Account in the amount specified in, and otherwise in accordance with, Section
4.07(i).
32
(b) Funds on deposit in the Reserve Account shall be invested at the
direction of the Servicer by the Trustee in Eligible Investments. Funds on
deposit in the Reserve Account on any Transfer Date, after giving effect to any
withdrawals from the Reserve Account on such Transfer Date, shall be invested in
such investments that will mature so that such funds will be available for
withdrawal on or prior to the following Transfer Date. The Trustee shall (i)
hold each Eligible Investment that constitutes investment property through a
securities intermediary, which securities intermediary shall agree with the
Trustee that (A) such investment property shall at all times be credited to a
securities account of the Trustee, (B) such securities intermediary shall treat
the Trustee as entitled to exercise the rights that comprise each financial
asset credited to such securities account, (C) all property credited to such
securities account shall be treated as a financial asset, (D) such securities
intermediary shall comply with entitlement orders originated by the Trustee
without the further consent of any other person or entity, (E) such securities
intermediary shall not agree with any person other than the Trustee to comply
with entitlement orders originated by such other person, (F) such securities
intermediary waives any lien on, security interest in, or right of set-off with
respect to any property credited to such securities account, and (G) such
agreement shall be governed by the laws of the State of New York; and (ii)
maintain possession of each other Eligible Investment not described in clause
(i) above. Terms used in clause (i) above that are defined in the New York UCC
and not otherwise defined herein shall have the meaning set forth in the New
York UCC. No Eligible Investment shall be disposed of prior to its maturity;
provided, however, that the Trustee may sell, liquidate or dispose of an
Eligible Investment before its maturity, if so directed by the Servicer, the
Servicer having reasonably determined (i) that the interest of the Series 2000-4
Holders may be adversely affected if such Eligible Investment is held to its
maturity and (ii) the primary purpose of such sale, liquidation or disposition
is not recognizing gains or decreasing losses resulting from market value
changes. On each Distribution Date, all interest and earnings (net of losses and
investment expenses) accrued since the preceding Distribution Date on funds on
deposit in the Reserve Account shall be retained in the Reserve Account (to the
extent that the Available Reserve Account Amount is less than the Required
Reserve Account Amount) and the balance, if any, shall be deposited in the
Collection Account and treated as Collections of Finance Charge Receivables
allocable to Series 2000-4. For purposes of determining the availability of
funds or the balance in the Reserve Account for any reason under this
Supplement, except as otherwise provided in the preceding sentence, investment
earnings on such funds shall be deemed not to be available or on deposit.
(c) On the Determination Date preceding each Distribution Date with respect
to the Accumulation Period and the first Special Payment Date, the Servicer
shall calculate the "Reserve Draw Amount" which shall be equal to the sum of the
excesses, if any, identified in subsections 4.11(d)(i), (ii) and (iii); provided
that such amount will be reduced to the extent that funds otherwise would be
available for deposit in the Reserve Account under Section 4.07(i) with respect
to such Distribution Date or Special Payment Date.
(d) In the event that for any Distribution Date the Reserve Draw Amount is
greater than zero, the Reserve Draw Amount, up to the Available Reserve Account
Amount, shall be withdrawn from the Reserve Account on the related Distribution
Date by the Trustee (acting in accordance with the instructions of the
Servicer), deposited into the Collection Account and applied in the following
priority:
33
(i) an amount up to the excess, if any, of (x) an amount equal to that
portion of the Covered Amount computed pursuant to clause (a) of the
definition of Covered Amount over (y) an amount equal to that portion of
the Class A Available Funds computed pursuant to clause (a) of the
definition of Class A Available Funds shall be included as Class A
Available Funds; and
(ii) an amount up to the excess, if any, of (x) an amount equal to
that portion of the Covered Amount computed pursuant to clause (b) of the
definition of Covered Amount over (y) an amount equal to that portion of
the Class B Available Funds computed pursuant to clause (a) of the
definition of Class B Available Funds shall be treated as Class B Available
Funds; and
(iii) on and after the Distribution Date on which the Principal
Funding Account Balance equals the sum of the Class A Invested Amount and
the Class B Invested Amount, an amount up to the excess, if any, of (x) an
amount equal to that portion of the Covered Amount computed pursuant to
clause (c) of the definition of Covered Amount over (y) an amount equal to
the aggregate amount of Excess Spread and Excess Finance Charge Collections
allocated to Series 2000-4 with respect to such Distribution Date or
Special Payment Date available after application in accordance with
subsections 4.07(a) through (d) shall be distributed to the Collateral
Interest Holder.
(e) In the event that the Reserve Account Surplus on any Distribution Date,
after giving effect to all deposits to and withdrawals from the Reserve Account
with respect to such Distribution Date, is greater than zero, the Trustee,
acting in accordance with the instructions of the Servicer, shall withdraw from
the Reserve Account, and distribute to the Collateral Interest Holder, an amount
equal to such Reserve Account Surplus.
(f) Upon the earliest to occur of (i) the termination of the Trust pursuant
to Article XII of the Agreement, (ii) the day on which the Invested Amount is
paid in full to the Class A Certificateholders, the Class B Certificateholders
and the Collateral Interest Holder, (iii) if the Accumulation Period has not
commenced, the occurrence of a Pay Out Event with respect to Series 2000-4 and
(iv) if the Accumulation Period has commenced, the earlier of the first Special
Payment Date and the Expected Final Payment Date, the Trustee, acting in
accordance with the instructions of the Servicer, after the prior payment of all
amounts owing to the Series 2000-4 Certificateholders which are payable from the
Reserve Account as provided herein, shall withdraw from the Reserve Account and
distribute to the Collateral Interest Holder all amounts, if any, on deposit in
the Reserve Account and the Reserve Account shall be deemed to have terminated
for purposes of this Supplement.
Section 4.12. Interest Rate Swap.
(a) The Trustee, on behalf of the Trust, shall enter into the Interest Rate
Swap, certain terms of which are set forth herein for the convenience of the
parties thereto for incorporation therein by reference, with the Swap
Counterparty on the Closing Date. Pursuant to the terms of the Interest Rate
Swap, the Swap Counterparty shall pay to the Trustee on each Distribution Date
the Net Swap Receipt, if any, plus the amount of any Net Swap Receipt due but
not paid with respect to any previous Distribution Date. The Trustee shall
deposit such Net
34
Swap Receipts, if any, into the Collection Account and shall apply such amounts
as Class A Available Funds pursuant to subsection 4.05(a). In addition, in
accordance with the terms of the Interest Rate Swap, the Trustee shall pay to
the Swap Counterparty the Net Swap Payment, if any, for such Distribution Date,
plus the amount of any Net Swap Payment due but not paid on any previous
Distribution Date, from amounts applied pursuant to subsection 4.05(a)(ii). If
the Interest Rate Swap has not been terminated and the Trustee has not received
any Net Swap Receipt due with respect to the related Distribution Date prior to
10:00 a.m. (New York City time) on the date such payment is due, (i) the Trustee
shall notify the Swap Counterparty, the Seller and the Servicer of such fact
prior to 12:00 p.m. (New York City time) on such date, (ii) the Trustee, if
directed by the Servicer, shall designate an Early Termination Date (as such
term is defined in the Interest Rate Swap) pursuant to the Interest Rate Swap
and shall, if the Seller so directs, terminate the Interest Rate Swap pursuant
to its terms, and (iii) the Servicer shall provide the Trustee, prior to 4:30
p.m. (New York City time) on the related Distribution Date, with new statements
substantially in the forms of Exhibit B and Exhibit C to this Supplement
revised, if necessary, to reflect that the Net Swap Receipt (or any portion
thereof) was not received by the Trustee for such Distribution Date.
(b) Following the termination of the Interest Rate Swap pursuant to the
terms thereof, the Swap Counterparty shall pay to the Trustee the amount of the
termination payment, if any, to be made by the Swap Counterparty pursuant to
Section 6 of the Interest Rate Swap. The Trustee shall, promptly upon receipt of
such termination payment, if any, distribute the amount of such termination
payment to the Collateral Interest Holder in accordance with Section 5.01.
(c) The Trustee, at the direction of the Servicer, shall direct the Swap
Counterparty to assign its rights and obligations under the Interest Rate Swap
to a replacement Swap Counterparty in the event that the long-term, senior
unsecured debt rating of the Swap Counterparty is reduced below BBB- by Standard
& Poor's or below Baa3 by Moody's or is withdrawn by either Standard & Poor's or
Moody's. The Servicer shall give Standard & Poor's and Moody's notice of the
replacement of the Swap Counterparty as soon as practicable thereafter.
(d) The parties hereto agree that all obligations of the Trustee on behalf
of the Trust under the Interest Rate Swap shall be paid from, and limited to,
funds specifically available therefor pursuant to subsection 4.05(a)(ii) of this
Supplement and that the Trustee shall not be required to expend or risk its own
funds or otherwise incur any liability in connection with the Interest Rate
Swap.
(e) If the Trustee has actual knowledge of any event specified in Section 5
of the Interest Rate Swap, the Trustee shall provide written notice of such
event to the Servicer, the Seller and each Rating Agency. The Seller, upon
becoming aware of any event specified in Section 5 of the Interest Rate Swap,
whether pursuant to notice from the Trustee or otherwise, shall immediately
provide the Trustee with written instructions as to the course of action to be
taken under Section 6 of the Interest Rate Swap, including, without limitation,
any notices to be provided and whether or not an Early Termination Date (as such
term is defined in the Interest Rate Swap) should be designated and, if so, when
such Early Termination Date should be
35
designated. Prior to receiving such written instructions from the Seller, the
Trustee shall not designate an Early Termination Date and shall not terminate
the Interest Rate Swap.
(f) At the request of the Trustee, the Seller shall provide the Trustee
with any document the Trustee is required to provide the Swap Counterparty
pursuant to Section 4(a) of the Interest Rate Swap.
ARTICLE V
Distributions and Reports to Series 2000-4 Certificateholders
Section 5.01. Distributions.
(a) On each Payment Date, the Paying Agent shall distribute to each Class A
Certificateholder of record on the related Record Date (other than as provided
in Section 12.02 of the Agreement) such Class A Certificateholder's pro rata
share of the amounts that are allocated and available on such Payment Date to
pay interest on the Class A Certificates pursuant to this Supplement.
(b) On each Special Payment Date and on the Expected Final Payment Date,
the Paying Agent shall distribute to each Class A Certificateholder of record on
the related Record Date (other than as provided in Section 12.02 of the
Agreement) such Class A Certificateholder's pro rata share of the amounts on
deposit in the Principal Funding Account (in an amount not to exceed the Class A
Invested Amount) or otherwise held by the Paying Agent and which are allocated
and available on such date to pay principal of the Class A Certificates pursuant
to this Supplement up to a maximum amount on any such date equal to the Class A
Invested Amount on such date (unless there has been an optional repurchase of
the Certificateholders' Interest with respect to Series 2000-4 pursuant to
Section 10.01 of the Agreement, in which event the foregoing limitation will not
apply).
(c) On each Payment Date, the Paying Agent shall distribute to each Class B
Certificateholder of record on the related Record Date (other than as provided
in Section 12.02 of the Agreement) such Class B Certificateholder's pro rata
share of the amounts that are allocated and available on such Payment Date to
pay interest on the Class B Certificates pursuant to this Supplement.
(d) On each Special Payment Date, if any, commencing on the first Special
Payment Date on which the Class A Invested Amount is paid in full and on the
Expected Final Payment Date, the Paying Agent shall distribute to each Class B
Certificateholder of record on the related Record Date (other than as provided
in Section 12.02 of the Agreement) such Class B Certificateholder's pro rata
share of the amounts on deposit in the Principal Funding Account in excess of
the Class A Invested Amount (in an amount not to exceed the Class B Invested
Amount) or otherwise held by the Paying Agent and which are allocated and
available on such date to pay principal of the Class B Certificates pursuant to
this Supplement up to a maximum amount on any such date equal to the Class B
Invested Amount on such date (unless there has been an optional repurchase of
the Certificateholders' Interest with respect to Series 2000-4
36
pursuant to Section 10.01 of the Agreement, in which event the foregoing
limitation will not apply).
(e) On each Payment Date, the Paying Agent shall distribute to each
Collateral Interest Holder of record on the related Record Date (other than as
provided in Section 12.02 of the Agreement) such Collateral Interest Holder's
pro rata share of the amounts that are allocated and available on such Payment
Date to pay interest on the Collateral Interest pursuant to this Supplement.
(f) On each Special Payment Date, if any, commencing on the first Special
Payment Date on which the Class B Invested Amount is paid in full and on the
Expected Final Payment Date, the Paying Agent shall distribute to each
Collateral Interest Holder of record on the related Record Date such Collateral
Interest Holder's pro rata share of the amounts on deposit in the Principal
Funding Account in excess of the sum of the Class A Invested Amount and the
Class B Invested Amount (in an amount not to exceed the Collateral Invested
Amount), held by the Paying Agent or otherwise allocated and available on such
date to pay principal of the Collateral Interest pursuant to this Supplement up
to a maximum amount on any such date equal to the Collateral Invested Amount
(unless there has been an optional repurchase of the Certificateholders'
Interest with respect to Series 2000-4 pursuant to Section 10.01 of the
Agreement, in which event the foregoing limitation will not apply).
(g) The distributions to be made pursuant to this Section 5.01 are subject
to the provisions of Sections 2.06, 9.02, 10.01 and 12.02 of the Agreement and
Sections 8.01 and 8.02 of this Supplement.
(h) Except as provided in Section 12.02 of the Agreement with respect to a
final distribution, distributions to each Series 2000-4 Certificateholder
hereunder shall be made by check mailed to each Series 2000-4 Certificateholder
at such Series 2000-4 Certificateholder's address appearing in the Certificate
Register without presentation or surrender of any Series 2000-4 Certificate or
the making of any notation thereon; provided, however, that with respect to the
Series 2000-4 Certificates registered in the name of a Clearing Agency, such
distributions shall be made to such Clearing Agency in immediately available
funds. Distributions to each Collateral Interest Holder hereunder shall be made
(i) by wire transfer in same day funds to an account at a bank or other
depository institution located within the United States as shall have been
designated by such Collateral Interest Holder by notice in writing on or before
the related Payment Date or (ii) in the absence of such designation, by check
mailed to each Collateral Interest Holder at the address appearing in the
Transfer Agreement.
Section 5.02. Reports and Statements to Series 2000-4 Certificateholders.
(a) On each Distribution Date, the Paying Agent, on behalf of the Trustee,
shall make available for inspection upon request to each Series 2000-4 Holder
free of charge at the office of such Paying Agent a statement substantially in
the form of Exhibit C prepared by the Servicer for a period of six months
commencing on such Distribution Date.
(b) Not later than each Determination Date, the Servicer shall deliver to
the Trustee, the Paying Agent and each Rating Agency (i) a statement
substantially in the form of
37
Exhibit B prepared by the Servicer and (ii) a certificate of a Servicing Officer
substantially in the form of Exhibit C.
(c) On or before January 31 of each calendar year, beginning with the
calendar year next succeeding the Closing Date, the Paying Agent, on behalf of
the Trustee, shall make available for inspection upon request to each Person who
at any time during the preceding calendar year was a Series 2000-4 Holder free
of charge at the office of such Paying Agents, a statement prepared by the
Servicer containing the information which is required to be contained in the
statement to Series 2000-4 Holders, as set forth in paragraph (a) or (b) above,
as applicable, aggregated for such calendar year or the applicable portion
thereof during which such Person was a Series 2000-4 Holder, together with other
information as is required to be provided by an issuer of indebtedness under the
Internal Revenue Code for a period of eighteen months commencing on February 1
of such calendar year. Such obligation of the Servicer shall be deemed to have
been satisfied to the extent that substantially comparable information shall be
made available for inspection by the Paying Agent pursuant to any requirements
of the Internal Revenue Code as from time to time in effect.
ARTICLE VI
Additional Pay Out Events
Section 6.01. Additional Pay Out Events. If any one of the following events
shall occur with respect to the Series 2000-4 Certificates:
(a) failure on the part of the Seller (i) to make any payment or deposit
required by the terms of the Agreement or this Supplement on or before the date
occurring five Business Days after the date such payment or deposit is required
to be made therein or herein or (ii) duly to observe or perform any other
covenants or agreements of the Seller set forth in the Agreement or this
Supplement (including the covenants of the Seller contained in Article IX of
this Supplement), which failure has a material adverse effect on the Series
2000-4 Holders and which continues unremedied for a period of 60 days after the
date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Seller by the Trustee, or to the Seller and the
Trustee by any Series 2000-4 Holder;
(b) any representation or warranty made by the Seller in the Agreement or
this Supplement, or any information contained in a computer file or microfiche
list required to be delivered by the Seller pursuant to Section 2.01 or 2.08(g)
of the Agreement shall prove to have been incorrect in any material respect when
made or when delivered, which continues to be incorrect in any material respect
for a period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Seller by the
Trustee, or to the Seller and the Trustee by any Holder of the Series 2000-4
Interests and as a result of which the interests of the Series 2000-4 Holders
are materially and adversely affected and continue to be materially and
adversely affected for such period; provided, however, that a Pay Out Event
pursuant to this Section 6.01(b) shall not be deemed to have occurred hereunder
if the Seller has accepted reassignment of the related Receivable, or all of
such Receivables, if applicable, during such period in accordance with the
provisions of the Agreement;
38
(c) a failure by the Seller to convey Receivables in Additional Accounts or
Participation Interests to the Trust within five Business Days after the day on
which it is required to convey such Receivables or Participation Interests
pursuant to Section 2.08(a) of the Agreement or Section 9.02 of this Supplement;
(d) any Servicer Default shall occur;
(e) a Transfer Restriction Event shall occur;
(f) the average Portfolio Yield for any three consecutive Monthly Periods
is reduced to a rate which is less than the average Base Rate for such three
Monthly Periods; or
(g) the Invested Amount shall not be paid in full on the Expected Final
Payment Date;
then, in the case of any event described in subparagraph (a), (b) or (d), after
the applicable grace period, if any, set forth in such subparagraphs, either the
Trustee or the holders of Investor Certificates (including the Collateral
Interest Holder) of Series 2000-4 evidencing more than 50% of the aggregate
unpaid principal amount of Investor Certificates (including the Collateral
Interest ) by notice then given in writing to the Seller and the Servicer (and
to the Trustee if given by the holders of Investor Certificates (including the
Collateral Interest Holder) of Series 2000-4) may declare that a Pay Out Event
has occurred with respect to Series 2000-4 as of the date of such notice, and,
in the case of any event described in subparagraph (c), (e), (f) or (g) a Pay
Out Event shall occur with respect to Series 2000-4 without any notice or other
action on the part of the Trustee or holders of Investor Certificates (including
the Collateral Interest Holder) of Series 2000-4 immediately upon the occurrence
of such event.
ARTICLE VII
Optional Repurchase; Series Termination
Section 7.01. Optional Repurchase.
(a) On any day occurring on or after the date on which the Invested Amount
is reduced to 5% or less of the Initial Invested Amount, the Seller shall have
the option to purchase the interest of the Series 2000-4 Holders, at a purchase
price equal to (i) if such day is a Distribution Date, the Reassignment Amount
for such Distribution Date or (ii) if such day is not a Distribution Date, the
Reassignment Amount for the Distribution Date following such day.
(b) The Seller shall give the Servicer and the Trustee at least 30 days
prior written notice of the date on which the Seller intends to exercise such
purchase option. Not later than 12:00 noon, Richmond time, on such day 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. Following the deposit of the Reassignment Amount
into the Collection Account in accordance with the foregoing, the Invested
Amount for Series 2000-4 shall be reduced to zero and the Series 2000-4
Certificateholders and the Collateral
39
Interest Holder shall have no further interest in the Receivables. The
Reassignment Amount shall be distributed as set forth in Section 8.01(b).
Section 7.02. Series Termination.
(a) If, on the June 2008 Distribution Date, the Invested Amount (after
giving effect to all changes therein on such Distribution Date) would be greater
than zero, the Servicer, on behalf of the Trustee, shall, within the 40-day
period which begins on such Distribution Date, solicit bids for the sale of
Principal Receivables and the related Finance Charge Receivables (or interests
therein) in an amount equal to the Invested Amount at the close of business on
the last day of the Monthly Period preceding the Termination Date (after giving
effect to all distributions required to be made on the Termination Date, except
pursuant to this Section 7.02). Such bids shall require that such sale shall
(subject to Section 7.02(b)) occur on the Termination Date.
(b) The Servicer, on behalf of the Trustee, shall sell such Receivables (or
interests therein) on the Termination Date to the bidder who made the highest
cash purchase offer. The proceeds of any such sale shall be deposited in the
Collection Account and treated as Collections on the Receivables allocated to
the Series 2000-4 Holders pursuant to the Agreement and this Supplement;
provided, however, that the Servicer shall determine conclusively the amount of
such proceeds which are allocable to Finance Charge Receivables and the amount
of such proceeds which are allocable to Principal Receivables. During the period
from the June 2008 Distribution Date to the Termination Date, the Servicer shall
continue to collect payments on the Receivables and allocate and deposit such
collections in accordance with the provisions of the Agreement and the
Supplements.
ARTICLE VIII
Final Distributions
Section 8.01. Sale of Receivables or Certificateholders' Interest pursuant
to Section 2.06 or 10.01 of the Agreement.
(a) Purchase Price. (i) The amount to be paid by the Seller with
respect to Series 2000-4 in connection with a reassignment of Receivables
to the Seller pursuant to Section 2.06 of the Agreement shall equal the
Reassignment Amount for the first Distribution Date following the Monthly
Period in which the reassignment obligation arises under the Agreement.
(ii) The amount to be paid by the Seller with respect to Series 2000-4
in connection with a repurchase of the Certificateholders' Interest
pursuant to Section 10.01 of the Agreement shall equal the sum of (x) the
Reassignment Amount for the Distribution Date of such repurchase and (y)
the sum of (A) the excess, if any, of (I) a price equivalent to the average
of bids quoted on the Record Date preceding the date of repurchase (or, if
not a Business Day, on the next succeeding Business Day) by at least two
recognized dealers selected by the Trustee at the written direction of the
Servicer, for the purchase by such dealers of a security which is similar
to the Class A Certificates with a remaining maturity approximately equal
to the remaining maturity of the Class A Certificates
40
and rated by each Rating Agency in the rating category originally assigned
to the Class A Certificates over (II) the portion of the Reassignment
Amount attributable to the Class A Certificates, (B) the excess, if any, of
(I) a price equivalent to the average of bids quoted on such Record Date
or, if not a Business Day, on the next succeeding Business Day by at least
two recognized dealers selected by the Trustee at the written direction of
the Servicer, for the purchase by such dealers of a security which is
similar to the Class B Certificates with a remaining maturity approximately
equal to the remaining maturity of the Class B Certificates and rated by
each Rating Agency in the rating category originally assigned to the Class
B Certificates over (II) the portion of the Reassignment Amount
attributable to the Class B Certificates and (C) the excess, if any, of (I)
a price equivalent to the average of bids quoted on such Record Date or, if
not a Business Day, on the next succeeding Business Day by at least two
recognized dealers selected by the Trustee at the written direction of the
Servicer, for the purchase by such dealers of a security which is similar
to the Notes (as defined in the Transfer Agreement) with a remaining
maturity approximately equal to the remaining maturity of the Notes and
rated by each rating agency selected to rate the Notes in the rating
category originally assigned to the Notes over (II) the portion of the
Reassignment Amount attributable to the Collateral Interest.
(b) Distributions Pursuant to Section 7.01 or 7.02 of this Supplement and
Section 10.01 of the Agreement. With respect to the Reassignment Amount
deposited into the Collection Account pursuant to Section 7.01 or 8.01(a)(ii) or
any amounts allocable to the Series 2000-4 Certificateholders' Interest
deposited into the Collection Account pursuant to Section 7.02, the Trustee
shall, not later than 12:00 noon, Richmond time, on the related Distribution
Date, make deposits or distributions of the following amounts (in the priority
set forth below and, in each case, after giving effect to any deposits and
distributions otherwise to be made on such date) in immediately available funds:
(i) (x) the Class A Invested Amount on such Distribution Date will be
distributed to the Paying Agent for payment to the Class A Certificateholders,
(y) an amount equal to the sum of (A) Class A Monthly Interest for such
Distribution Date, (B) any Class A Outstanding Monthly Interest and (C) the
amount of Class A Additional Interest, if any, for such Distribution Date and
any Class A Outstanding Additional Interest, will be distributed to the Paying
Agent for payment to the Class A Certificateholders and (z) an amount equal to
the Net Swap Payment, if any, for such Distribution Date and any previously due
but not paid Net Swap Payments, (ii) (x) the Class B Invested Amount on such
Distribution Date will be distributed to the Paying Agent for payment to the
Class B Certificateholders and (y) an amount equal to the sum of (A) Class B
Monthly Interest for such Distribution Date, (B) any Class B Outstanding Monthly
Interest and (C) the amount of Class B Additional Interest, if any, for such
Distribution Date and any Class B Outstanding Additional Interest, will be
distributed to the Paying Agent for payment to the Class B Certificateholders
and (iii) any remaining amounts will be distributed to the Paying Agent for
payment to the Collateral Interest Holder. Notwithstanding anything to the
contrary contained in this Supplement or the Agreement, the amount of any excess
determined pursuant to paragraph (a)(ii)(y) shall be distributed to the Series
2000-4 Certificateholders.
(c) Distributions Pursuant to Section 2.06 of the Agreement. With respect
to any amounts deposited into the Collection Account pursuant to Section
8.01(a)(i), the Trustee shall, not later than 12:00 noon, Richmond time, on the
related Distribution Date, deposit the
41
principal portion of such amounts that are allocable to the Series 2000-4
Holders into the Principal Funding Account.
(d) Notwithstanding anything to the contrary in this Supplement or the
Agreement, all amounts distributed to the Paying Agent pursuant to Section
8.01(b) for payment to the Series 2000-4 Holders shall be deemed distributed in
full to the Series 2000-4 Holders on the date on which such funds are
distributed to the Paying Agent pursuant to this Section and shall be deemed to
be a final distribution pursuant to Section 12.02 of the Agreement.
Section 8.02. Distribution of Proceeds of Sale, Disposition or Liquidation
of the Receivables pursuant to Section 9.02 of the Agreement.
(a) Not later than 12:00 noon, Richmond time, on the Distribution Date
following the date on which the Insolvency Proceeds are deposited into the
Collection Account pursuant to Section 9.02(b) of the Agreement, the Trustee
shall (in the following priority and, in each case, after giving effect to any
deposits and distributions otherwise to be made on such Distribution Date) (i)
deduct an amount equal to the Class A Invested Amount on such Distribution Date
from the portion of the Insolvency Proceeds allocated to Collections of
Principal Receivables and distribute such amount to the Paying Agent for payment
to the Class A Certificateholders, provided that the amount of such distribution
shall not exceed the product of (x) the portion of the Insolvency Proceeds
allocated to Collections of Principal Receivables and (y) the Principal
Allocation Percentage with respect to the related Monthly Period and (ii) deduct
an amount equal to the Class B Invested Amount on such Distribution Date from
the portion of the Insolvency Proceeds allocated to Collections of Principal
Receivables and distribute such amount to the Paying Agent for payment to the
Class B Certificateholders, provided that the amount of such distribution shall
not exceed (x) the product of (A) the portion of such Insolvency Proceeds
allocated to Collections of Principal Receivables and (B) the Principal
Allocation Percentage with respect to the related Monthly Period minus (y) the
amount distributed to the Paying Agent pursuant to clause (i) of this sentence.
To the extent that the product of (A) the portion of the Insolvency Proceeds
allocated to Collections of Principal Receivables and (B) the Principal
Allocation Percentage with respect to the related Monthly Period exceeds the
aggregate amounts distributed to the Paying Agent pursuant to the preceding
sentence, the excess shall be distributed to the Paying Agent for payment to the
Collateral Interest Holder on such Distribution Date.
(b) Not later than 12:00 noon, Richmond time, on such Distribution Date,
the Trustee shall (in the following priority and, in each case, after giving
effect to any deposits and distributions otherwise to be made on such
Distribution Date) (i) deduct an amount equal to the sum of (A) the sum of (w)
Class A Monthly Interest for such Distribution Date, (x) any Class A Outstanding
Monthly Interest and (y) the amount of Class A Additional Interest, if any, for
such Distribution Date and any Class A Outstanding Additional Interest, from the
portion of the Insolvency Proceeds allocated to Collections of Finance Charge
Receivables and distribute such amount to the Paying Agent for payment to the
Class A Certificateholders and (B) an amount equal to the Net Swap Payment, if
any, for such Distribution Date and any previously due but not paid Net Swap
Payments, provided that the amount of such distribution shall not exceed the
product of (A) the portion of the Insolvency Proceeds allocated to Collections
of Finance Charge Receivables, (B) the Floating Allocation Percentage with
respect to the related Monthly Period
42
and (C) the Class A Floating Percentage with respect to such Monthly Period and
(ii) deduct an amount equal to the sum of (w) Class B Monthly Interest for such
Distribution Date, (x) Class B Outstanding Monthly Interest and (y) the amount
of Class B Additional Interest, if any, for such Distribution Date and any Class
B Outstanding Additional Interest, from the portion of the Insolvency Proceeds
allocated to Collections of Finance Charge Receivables and distribute such
amount to the Paying Agent for payment to the Class B Certificateholders,
provided that the amount of such distribution shall not exceed the product of
(A) the portion of the Insolvency Proceeds allocated to Collections of Finance
Charge Receivables, (B) the Floating Allocation Percentage with respect to the
related Monthly Period and (C) the Class B Floating Percentage with respect to
such Monthly Period. To the extent that the product of (x) the portion of the
Insolvency Proceeds allocated to Collections of Finance Charge Receivables and
(y) the Floating Allocation Percentage with respect to the related Monthly
Period exceeds the aggregate amount distributed to the Paying Agent pursuant to
the preceding sentence, the excess shall be distributed to the Paying Agent for
payment to the Collateral Interest Holder on such Distribution Date.
(c) Notwithstanding anything to the contrary in this Supplement or the
Agreement, all amounts distributed to the Paying Agent pursuant to this Section
for payment to the Series 2000-4 Holders shall be distributed in full to the
Series 2000-4 Holders on the date on which funds are distributed to the
applicable Paying Agents pursuant to this Section and shall be deemed to be a
final distribution pursuant to Section 12.02 of the Agreement.
(d) Notwithstanding any provision of the Agreement or this Supplement, for
purposes of Section 9.02(a) of the Agreement, the Holders of the Series 2000-4
Certificates shall not be deemed to have disapproved a liquidation of the
Receivables following an Insolvency Event with respect to the Seller unless (i)
holders of more than 50% of the aggregate unpaid principal amount of each of the
Class A Certificates and the Class B Certificates and (ii) beneficial owners of
more than 50% of the Collateral Interest shall have disapproved of such
liquidation.
ARTICLE IX
New Issuances; Addition of Accounts
Section 9.01. New Issuances. The obligation of the Trustee to authenticate
the Investor Certificates of a new Series and to execute and deliver the related
Supplement shall be subject to the conditions set forth in Section 6.03(b) of
the Agreement and to the additional condition that, as of the Series Issuance
Date and after giving effect to such issuance, the aggregate amount of Principal
Receivables equals or exceeds the Required Principal Balance.
Section 9.02. Addition of Accounts.
(i) If, as of the close of business on the last Business Day of any Monthly
Period, the aggregate amount of Principal Receivables is less than the Required
Principal Balance on such date, the Seller shall on or prior to the close of
business on the 10th Business Day following the last Business Day of such
Monthly Period (the "Required Designation Date"), unless the aggregate amount of
Principal Receivables exceeds the Required Principal Balance as
43
of the close of business on any day after the last Business Day of such Monthly
Period and prior to the Required Designation Date, designate additional Eligible
Accounts to be included as Accounts as of the Required Designation Date or any
earlier date in a sufficient amount such that, after giving effect to such
addition, the aggregate amount of Principal Receivables equals or exceeds the
Required Principal Balance on such date. Each such addition shall be subject to
the same conditions applicable to any Addition required to be made pursuant to
Section 2.08(a) of the Agreement. The failure of any condition set forth in
Section 2.08(c) or (d) of the Agreement, as the case may be, shall not relieve
the Seller of its obligation pursuant to this paragraph; provided, however, that
the failure of the Seller to transfer Receivables to the Trust as provided in
this paragraph solely as a result of the unavailability of a sufficient amount
of Eligible Receivables shall not constitute a breach of this Supplement;
provided further that any such failure which has not been timely cured will
nevertheless result in the occurrence of a Pay Out Event with respect to Series
2000-4.
(ii) In lieu of, or in addition to, designating Additional Accounts
pursuant to clause (i) above, the Seller may, subject to the conditions
specified in Section 2.08(d) of the Agreement, convey to the Trust Participation
Interests. The addition of Participation Interests in the Trust pursuant to this
paragraph shall be effected by an amendment to the Agreement and this
Supplement, dated the applicable Addition Date, pursuant to Section 13.01(a) of
the Agreement.
ARTICLE X
Miscellaneous Provisions
Section 10.01. Ratification of Agreement. As supplemented by this
Supplement, the Agreement is in all respects ratified and confirmed and the
Agreement as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.
Section 10.02. Counterparts. This 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 shall constitute one and the same
instrument.
Section 10.03. GOVERNING LAW. THIS SUPPLEMENT 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.
Section 10.04. Determination of Material Adverse Effect. Any determination
of material adverse effect on the Series 2000-4 Certificateholders under the
Agreement or this Supplement shall be made assuming the Collateral Invested
Amount is zero (including, without limitation, any determination of whether a
representation or warranty made therein is correct or whether a Seller or the
Servicer has duly performed a covenant contained therein or herein).
Section 10.05. Book-Entry Certificates; Private Placement of the Class B
Certificates.
44
(a) The Class A Certificates and the Class B Certificates shall be
delivered as Book-Entry Certificates. The Clearing Agency for the Class A
Certificates and the Class B Certificates shall be The Depository Trust Company,
and the Class A Certificates and the Class B Certificates shall be initially
registered in the name of Cede & Co., its nominee. The Series 2000-4
Certificates are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000.
(b) The Class B Certificates have not been registered under the Act or any
state securities law. The Class B Certificates shall bear a legend to the effect
set forth in Exhibit A-2 hereto, which, notwithstanding anything in the
Agreement and this Supplement to the contrary, shall not require the application
of subsection 6.04(c) of the Agreement to any transfer of any such Class B
Certificates. Neither the Seller nor the Trustee is obligated to register the
Class B Certificates under the Act or to take any other action not otherwise
required under this Supplement or the Agreement to permit the transfer of the
Class B Certificates without registration.
(c) No transfer of any Class B Certificate or any interest therein
(including, without limitation, by pledge or hypothecation) shall be made,
unless registered under the Act or any state securities law, except in
compliance with the restrictions on transfer set forth in this Section 10.05
(including the applicable legend to be set forth on the face of each Class B
Certificate as provided in Exhibit A-2) in a transaction exempt from the
registration requirements of the Act and applicable state securities or "Blue
Sky" laws to a person (i) that the transferor reasonably believes is a
"qualified institutional buyer" within the meaning thereof in Rule 144A (a
"QIB") in the form of beneficial interests in the Class B Certificates, and (ii)
that is aware that the resale or other transfer is being made in reliance on
Rule 144A.
(d) Each purchaser of a Class B Certificate, by its acceptance thereof,
will be deemed to have acknowledged, represented to and agreed with the Seller
as follows:
(i) It understands and acknowledges that the Class B Certificates have
not been and will not be registered under the Act or any other applicable
securities law, are eligible for resale pursuant to Rule 144A, and, unless
so registered, may not be offered, sold or otherwise transferred except in
compliance with the registration requirements of the Act and any other
applicable securities law, pursuant to Rule 144A and in each case in
compliance with the conditions for transfer set forth in paragraph (iv)
below.
(ii) It is a "qualified institutional buyer," as defined in Rule 144A,
and it is aware that any sale of the Class B Certificates to it will be
made in reliance on its representation that is a QIB. Such acquisition will
be for its own account or for the account of another QIB.
(iii) It acknowledges that neither the Seller nor any person
representing the Seller has made any representation to it with respect to
the Seller or the offering or sale of any Class B Certificates, other than
the information contained in the private placement memorandum relating to
the Class B Certificates and the accompanying Prospectus which have been
delivered to it and upon which it is
45
relying in making its investment decision with respect to the Class B
Certificates. It has had access to such financial and other information
concerning the Seller and the Class B Certificates as it has deemed
necessary in connection with its decision to purchase the Class B
Certificates, including an opportunity to ask questions of and request
information from the Seller.
(iv) It is purchasing the Class B Certificates for its own account, or
for one or more investor accounts for which it is acting as a fiduciary or
agent, in each case for investment, and not with a view to, or for offer or
sale in connection with, any distribution thereof in violation of the Act,
subject to any requirements of law that the disposition of its property or
the property of such investor account or accounts be at all times within
its or their control and subject to its or their ability to resell such
Class B Certificates pursuant to Rule 144A or subject to any other
available exemption from the registration requirements of the Act. It
agrees on its own behalf and on behalf of any investor account for which it
is purchasing the Class B Certificates and each subsequent holder of the
Class B Certificates by its acceptance thereof will agree to offer, sell or
otherwise transfer such Class B Certificates only (i) pursuant to a
registration statement which has been declared effective under the Act or
(ii) for so long as the Class B Certificates are eligible for resale under
Rule 144A, to a person it reasonably believes is a QIB that purchases for
its own account or for the account of a QIB to whom notice is given that
the transfer is being made in reliance on Rule 144A, subject in each of the
foregoing cases to any requirement of law that the disposition of its
property or the property of such investor account or accounts be at all
times within its or their control. Each purchaser acknowledges that each
Class B Certificate will contain a legend substantially to the following
effect:
"THE CLASS B CERTIFICATES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAWS. NEITHER THIS CLASS B CERTIFICATE NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS CLASS B CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CLASS B CERTIFICATE ONLY (A)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT OR (B) FOR SO LONG AS THE CLASS B
CERTIFICATES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A UNDER
46
THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A.
THE HOLDER OF THIS CLASS B CERTIFICATE BY ITS ACCEPTANCE HEREOF
COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST
THE TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE TRUST OF, ANY
BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE
BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING
TO THE CLASS B CERTIFICATES OR THE POOLING AND SERVICING AGREEMENT."
(v) It acknowledges that the Seller and others will rely upon the
truth and accuracy of the foregoing acknowledgements, representations and
agreements and agrees that, if any of the acknowledgements, representations
or warranties deemed to have been made by it by its purchase of Class B
Certificates are no longer accurate, it shall promptly notify the Seller.
If it is acquiring any Class B Certificates as a fiduciary or agent for one
or more investor accounts, it represents that it has sole investment
discretion with respect to each such account and that it has full power to
make the foregoing acknowledgements, representations and agreements on
behalf of each such account.
(e) Each purchaser of a Class B Certificate, by its acceptance thereof,
will be deemed to have acknowledged, represented to and agreed with the Seller
that it is not and will not be (a) an employee benefit plan that is subject to
ERISA, (b) a plan or other arrangement (including an individual retirement
account or Xxxxx plan) that is subject to Section 4975 of the Code, or (c) an
entity whose underlying assets include "plan assets" under the Plan Asset
Regulation by reason of any such plan's investment in the entity. Each purchaser
of a Class B Certificate acknowledges that each Class B Certificate will contain
a legend substantially to the following effect (in addition to the legend in
subsection 10.05(d)(iv) above):
"THE HOLDER OF THIS CLASS B CERTIFICATE BY ITS ACCEPTANCE HEREOF
REPRESENTS AND WARRANTS, FOR THE BENEFIT OF CAPITAL ONE BANK, THAT
SUCH HOLDER IS NOT (1) AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, (2) A
PLAN OR OTHER ARRANGEMENT (INCLUDING AN INDIVIDUAL RETIREMENT ACCOUNT
OR XXXXX PLAN) THAT IS SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, OR (3) AN ENTITY WHOSE UNDERLYING ASSETS
INCLUDE "PLAN ASSETS" UNDER THE PLAN ASSET
47
REGULATION BY REASON OF ANY SUCH PLAN'S INVESTMENT IN THE ENTITY.
Section 10.06. Uncertificated Securities. The Collateral Interest shall be
delivered in uncertificated form.
Section 10.07. Transfers of the Collateral Interest.
(a) Unless otherwise consented to by the Seller, no portion of the
Collateral Interest or any interest therein may be sold, conveyed, assigned,
hypothecated, pledged, participated, exchanged or otherwise transferred (each, a
"Transfer") except in accordance with this Section 10.07 and only to a Permitted
Assignee. Any attempted or purported transfer, assignment, exchange, conveyance,
pledge, hypothecation or grant other than to a Permitted Assignee shall be void.
Unless otherwise consented to by the Seller, no portion of the Collateral
Interest or any interest therein may be Transferred to any Person (each such
Person acquiring the Collateral Interest or any interest therein, an "Assignee")
unless such Assignee shall have executed and delivered to the Seller on or
before the effective date of any Transfer a letter substantially in the form
attached hereto as Exhibit D (an "Investment Letter"), executed by such
Assignee, with respect to the related Transfer to such Assignee of all or a
portion of the Collateral Interest.
(b) Each Assignee will certify that the Collateral Interest or the interest
therein purchased by such Assignee will be acquired for investment only and not
with a view to any public distribution thereof, and that such Assignee will not
offer to sell or otherwise dispose of the Collateral Interest or any interest
therein so acquired by it in violation of any of the registration requirements
of the Act, or any applicable state or other securities laws. Each Assignee will
acknowledge and agree that (i) it has no right to require the Seller to register
under the Act or any other securities law the Collateral Interest or the
interest therein to be acquired by the Assignee and (ii) the sale of the
Collateral Interest is not being made by means of the Prospectus. Each Assignee
will agree with the Seller that: (a) such Assignee will deliver to the Seller on
or before the effective date of any Transfer an Investment Letter, executed by
such Assignee with respect to the purchase by such Assignee of all or a portion
of the Collateral Interest and (b) all of the statements made by such Assignee
in its Investment Letter shall be true and correct as of the date made.
(c) No portion of the Collateral Interest or any interest therein may be
Transferred, and each Assignee will certify that it is not, (a) an "employee
benefit plan" (as defined in Section 3(3) of ERISA), including governmental
plans and church plans, (b) any "plan" (as defined in Section 4975(e)(1) of the
Code) including individual retirement accounts and Xxxxx plans, or (c) any other
entity whose underlying assets include "plan assets" (within the meaning of
Department of Labor Regulation Section 2510.3-101, 29 C.F.R. ss. 2510.3-101 or
otherwise under ERISA) by reason of a plan's investment in the entity,
including, without limitation, an insurance company general account.
(d) This Section 10.07 shall not apply to the transfer and pledge of the
Collateral Interest on the Closing Date by the Seller pursuant to the Transfer
Agreement or by
48
the Capital One Secured Note Trust 2000-4 to the Indenture Trustee (as defined
in the Transfer Agreement) pursuant to the Indenture (as defined in the Transfer
Agreement).
Section 10.08. Certain Accounting Related Amendments. In addition to being
subject to amendment pursuant to any other provisions relating to amendments in
either the Agreement or this Supplement, Section 4.12 of this Supplement will be
amended by the Seller without the consent of the Servicer, the Trustee, any
Investor Certificateholder or the Swap Counterparty to permit the Trust to
qualify as a "qualified special purpose entity" as defined in FASB Statement No.
140. Promptly after the effectiveness of any amendment pursuant to this Section
10.08, the Seller shall deliver a copy of such amendment to each of the
Servicer, the Trustee, each Rating Agency and the Swap Counterparty.
49
IN WITNESS WHEREOF, the undersigned have caused this Supplement to be duly
executed and delivered by their respective duly authorized officers on the day
and year first above written.
CAPITAL ONE BANK,
Seller and Servicer
By: /s/ Xxxxxx Xxxx
-------------------------------------
Name: Xxxxxx Xxxx
Title: Director of Securitization
THE BANK OF NEW YORK,
Trustee
By: /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Assistant Treasurer
[Signature Page to Series 2000-4 Supplement]
EXHIBIT A-1
REGISTERED $975,000,0001
No. R-__ CUSIP No. 00000XXX0
Unless this Class A 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.
CAPITAL ONE MASTER TRUST
Series 2000-4
CLASS A FLOATING RATE ASSET BACKED CERTIFICATE
Expected Final Payment Date:
The October 2005 Distribution Date
Each $1,000 minimum denomination represents a
1/975,000 undivided interest
in certain assets of the
CAPITAL ONE MASTER TRUST
Evidencing an undivided interest in a trust, the corpus of which consists
primarily of receivables generated from time to time in the ordinary course of
business in a portfolio of consumer revolving credit card accounts by
CAPITAL ONE BANK
and, in certain circumstances, certain Additional Sellers (as defined in the
Pooling and Servicing Agreement referred to below).
(Not an interest in or obligation of Capital One Bank,
any Additional Seller or any affiliate thereof)
This certifies that CEDE & CO. (the "Class A Certificateholder") is the
registered owner of a fractional undivided interest in certain assets of a trust
(the "Trust") created pursuant to the Pooling and Servicing Agreement, dated as
of September 30, 1993 (as amended and supplemented, the "Agreement"), as
supplemented by the Series 2000-4 Supplement, dated as of
------------------------
* Denominations of $1,000 and integral multiples of $1,000 in excess thereof.
A-1-1
October 26, 2000 (as amended and supplemented, the "Series Supplement"), between
Capital One Bank, as Seller and Servicer, and The Bank of New York, a New York
banking corporation, as trustee (the "Trustee"). The corpus of the Trust
consists of (i) a portfolio of all receivables (the "Receivables") existing in
the consumer revolving credit card accounts and other consumer revolving credit
accounts identified under the Agreement from time to time (the "Accounts"), (ii)
all Receivables generated under the Accounts from time to time thereafter, (iii)
funds collected or to be collected from accountholders in respect of the
Receivables, (iv) all funds which are from time to time on deposit in the
Collection Account and in the Series Accounts, (v) an interest in any Funds
Collateral (as defined in the Agreement) relating to secured accounts, (vi) the
benefits of any Series Enhancement and (vii) all other assets and interests
constituting the Trust. The Holder of this Class A Certificate is entitled to
the benefit of any Series Enhancement to the extent provided in the Series
Supplement. Although a summary of certain provisions of the Agreement and the
Series Supplement is set forth below and on the Summary of Terms and Conditions
attached hereto and made a part hereof, this Class A Certificate does not
purport to summarize the Agreement and the Series Supplement and reference is
made to the Agreement and the Series Supplement 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 between this Class A Certificate and the Series Supplement or the
Agreement, the Series Supplement or the Agreement, as the case may be, shall
control. A copy of the Agreement and the Series Supplement (without schedules)
may be requested from the Trustee by writing to the Trustee at the Corporate
Trust Office. To the extent not defined herein, the capitalized terms used
herein have the meanings ascribed to them in the Agreement or the Series
Supplement, as applicable.
This Class A Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement and the Series Supplement, to which
Agreement and Series Supplement, each as amended and supplemented from time to
time, the Class A Certificateholder by virtue of the acceptance hereof assents
and is bound.
It is the intent of the Seller and the Investor Certificateholders that,
for federal, state and local income and franchise tax purposes only, the
Investor Certificates will qualify as indebtedness of the Seller secured by the
Receivables. The Class A Certificateholder, by the acceptance of this Class A
Certificate, agrees to treat this Class A Certificate for federal, state and
local income and franchise tax purposes as indebtedness of the Seller.
In general, payments of principal with respect to the Class A Certificates
are limited to the Class A Invested Amount, which may be less than the unpaid
principal balance of the Class A Certificates. The Expected Final Payment Date
is the October 2005 Distribution Date, but principal with respect to the Class A
Certificates may be paid earlier or later under certain circumstances described
in the Agreement and the Series Supplement. If for one or more months during the
Accumulation Period there are not sufficient funds to pay the Controlled Deposit
Amount, then to the extent that excess funds are not available on subsequent
Distribution Dates with respect to the Accumulation Period to make up for such
shortfalls, the final payment of principal of the Class A Certificates will
occur later than the Expected Final Payment Date.
A-1-2
Unless the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Class A Certificate shall not
be entitled to any benefit under the Agreement or the Series Supplement or be
valid for any purpose.
A-1-3
IN WITNESS WHEREOF, the Seller has caused this Class A Certificate to be
duly executed.
CAPITAL ONE BANK
By: _______________________
Name:
Title:
Dated: October 26, 2000
A-1-4
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class A Certificates described in the within-mentioned
Agreement and Series Supplement.
THE BANK OF NEW YORK,
as Trustee
By: _________________________
Authorized Officer
or
By: ________________________
as Authenticating Agent
for the Trustee
By: _________________________
Authorized Officer
A-1-5
CAPITAL ONE MASTER TRUST
SERIES 2000-4
CLASS A FLOATING RATE ASSET BACKED CERTIFICATE
Summary of Terms and Conditions
The Receivables consist of Principal Receivables which arise generally from
the purchase of goods and services and amounts advanced to accountholders as
cash advances and Finance Charge Receivables. This Class A Certificate is one of
a Series of Investor Certificates entitled "Capital One Master Trust, Series
2000-4." The Series 2000-4 Certificates are being issued in two Classes, the
first of which is known as the "Class A Floating Rate Asset Backed Certificates,
Series 2000-4" (the "Class A Certificates") and the second Class is known as the
"Class B Floating Rate Asset Backed Certificates, Series 2000-4" (the "Class B
Certificates"). In addition, as part of Series 2000-4, the Trust is creating a
third Class of uncertificated interest in the Trust which uncertificated
interest, except as expressly provided in the Series Supplement, is deemed to be
an "Investor Certificate" and is known as the "Collateral Interest, Series
2000-4" (the "Collateral Interest"). This Class A Certificate represents a
fractional undivided interest in certain assets of the Trust. The Trust Assets
are allocated in part to the certificateholders of all outstanding Series (the
"Certificateholders' Interest") with the remainder allocated to the Seller's
Interest. The aggregate interest represented by the Class A Certificates at any
time in the Principal Receivables in the Trust shall not exceed an amount equal
to the Class A Invested Amount at such time. The Class A Initial Invested Amount
is $975,000,000. The Class A Invested Amount on any date of determination will
be an amount equal to (a) the Class A Initial Invested Amount, minus (b) the
aggregate amount of principal payments made to the Class A Certificateholders on
or prior to such date, minus (c) the excess, if any, of the aggregate amount of
Class A Investor Charge-Offs for all prior Distribution Dates over the aggregate
amount of Class A Investor Charge-Offs reimbursed pursuant to subsection 4.06(a)
of the Series Supplement prior to such date. Also, Capital One Bank has received
an adjustment to the Seller's Interest on the date hereof.
Subject to the terms and conditions of the Agreement, the Seller may from
time to time direct the Trustee, on behalf of the Trust, to issue one or more
new Series of Investor Certificates, which will represent fractional undivided
interests in certain of the Trust Assets.
On each Payment Date, the Paying Agent shall distribute to each Class A
Certificateholder of record on the last day of the preceding calendar month
(each, a "Record Date") such Class A Certificateholder's pro rata share of such
amounts (including amounts on deposit in the Collection Account and the
Principal Funding Account) as are payable to the Class A Certificateholders
pursuant to the Agreement and the Series Supplement. Distributions with respect
to this Class A Certificate will be made by the Paying Agent by check mailed to
the address of the Class A Certificateholder of record appearing in the
Certificate Register without the presentation or surrender of this Class A
Certificate or the making of any notation thereon (except for the final
distribution in respect of this Class A Certificate), except that with respect
to
A-1-6
Class A Certificates registered in the name of Cede & Co., the nominee for The
Depository Trust Company, distributions will be made in the form of immediately
available funds. Final payment of this Class A Certificate will be made only
upon presentation and surrender of this Class A Certificate at the office or
agency specified in the notice of final distribution delivered by the Trustee to
the Class A Certificateholders in accordance with the Agreement and the Series
Supplement.
On any day occurring on or after the day on which the Invested Amount is
reduced to 5% or less of the Initial Invested Amount, the Seller has the option
to repurchase the Certificateholders' Interest in the Trust. The repurchase
price will be equal to (a) if such day is a Distribution Date, the Reassignment
Amount for such Distribution Date or (b) if such day is not a Distribution Date,
the Reassignment Amount for the Distribution Date following such day. Following
the deposit of the Reassignment Amount in the Collection Account, Class A
Certificateholders, the Class B Certificateholders and the Collateral Interest
Holder will not have any interest in the Receivables and the Class A
Certificates will represent only the right to receive such Reassignment Amount.
This Class A Certificate does not represent an obligation of, or an
interest in, the Seller, the Servicer or any affiliate of any of them and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
governmental agency or instrumentality. This Class A Certificate is limited in
right of payment to certain Collections with respect to the Receivables (and
certain other amounts), all as more specifically set forth hereinabove and in
the Agreement and the Series Supplement.
The Agreement or any Supplement may, subject to certain conditions, be
amended by the Seller, the Servicer and the Trustee without Certificateholder
consent. The Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Trustee's rights, duties or immunities under the
Agreement or otherwise.
The Agreement or any Supplement may also be amended from time to time by
the Servicer, the Seller and the Trustee, with the consent of the Holders of
Investor Certificates evidencing not less than 66"% of the aggregate unpaid
principal amount of the Investor Certificates of all adversely affected Series,
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Agreement or any Supplement or of
modifying in any manner the rights of the Investor Certificateholders; provided,
however, that no such amendment shall (i) reduce in any manner the amount of or
delay the timing of any distributions to be made to Investor Certificateholders
or deposits of amounts to be so distributed or the amount available under any
Series Enhancement without the consent of each affected Investor
Certificateholder, (ii) change the definition of or the manner of calculating
the interest of any Investor Certificateholder without the consent of each
affected Investor Certificateholder, (iii) reduce the aforesaid percentage
required to consent to any such amendment without the consent of each Investor
Certificateholder or (iv) adversely affect the rating of any Series or Class by
each Rating Agency without the consent of the Holders of Investor Certificates
of such Series or Class evidencing not less than 66"% of the aggregate unpaid
principal amount of the Investor Certificates of such Series or Class. The
Trustee may,
A-1-7
but shall not be obligated to, enter into any such amendment which affects the
Trustee's rights, duties or immunities under the Agreement or otherwise.
The Class A Certificates are issuable only in minimum denominations of
$1,000 and integral multiples of $1,000. The transfer of this Class A
Certificate shall be registered in the Certificate Register upon surrender of
this Class A Certificate for registration of transfer at any office or agency
maintained by the Transfer Agent and Registrar accompanied by a written
instrument of transfer, in a form satisfactory to the Trustee or the Transfer
Agent and Registrar, duly executed by the Class A Certificateholder or such
Class A Certificateholder's attorney, and duly authorized in writing with such
signature guaranteed, and thereupon one or more new Class A Certificates of
authorized denominations and for the same aggregate fractional undivided
interest will be issued to the designated transferee or transferees.
As provided in the Agreement and subject to certain limitations therein set
forth, Class A Certificates are exchangeable for new Class A Certificates
evidencing like aggregate fractional undivided interests as requested by the
Class A Certificateholder surrendering such Class A Certificates. No service
charge may be imposed for any such exchange but the Servicer or Transfer Agent
and Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.
The Servicer, the Trustee, the Paying Agent and the Transfer Agent and
Registrar and any agent of any of them, may treat the person in whose name this
Class A Certificate is registered as the owner hereof for all purposes, and
neither the Servicer nor the Trustee, the Paying Agent, the Transfer Agent and
Registrar, nor any agent of any of them, shall be affected by notice to the
contrary except in certain circumstances described in the Agreement.
THIS CLASS A 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.
A-1-8
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:
----------------------------
X-0-0
XXXXXXX X-0
REGISTERED $120,000,000*
No. R-__ CUSIP No. 00000XXX0
THE CLASS B CERTIFICATES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. NEITHER THIS CLASS B CERTIFICATE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
THE HOLDER OF THIS CLASS B CERTIFICATE BY ITS ACCEPTANCE
HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CLASS B CERTIFICATE ONLY
(A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT OR (B) FOR SO LONG AS THE CLASS B CERTIFICATES ARE ELIGIBLE
FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A.
THE HOLDER OF THIS CLASS B CERTIFICATE BY ITS ACCEPTANCE
HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE
TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE TRUST OF, ANY BANKRUPTCY
PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW
IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE CLASS B CERTIFICATES OR THE
POOLING AND SERVICING AGREEMENT.
THE HOLDER OF THIS CLASS B CERTIFICATE BY ITS ACCEPTANCE
HEREOF REPRESENTS AND WARRANTS, FOR THE BENEFIT OF CAPITAL ONE BANK, THAT SUCH
HOLDER IS NOT (1) AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, (2) A PLAN OR OTHER
ARRANGEMENT (INCLUDING AN INDIVIDUAL RETIREMENT ACCOUNT OR XXXXX PLAN) THAT IS
SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (3)
AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" UNDER THE PLAN ASSET
REGULATION BY REASON OF ANY SUCH PLAN'S INVESTMENT IN THE ENTITY.
A-2-1
Unless this Class B 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.
CAPITAL ONE MASTER TRUST
Series 2000-4
CLASS B FLOATING RATE ASSET BACKED CERTIFICATE
Expected Final Payment Date:
The October 2005 Distribution Date
Each $1,000 denomination represents a
1/120,000 undivided interest
in certain assets of the
CAPITAL ONE MASTER TRUST
Evidencing an undivided interest in a trust, the corpus of which consists
primarily of receivables generated from time to time in the ordinary course of
business in a portfolio of consumer revolving credit card accounts by CAPITAL
ONE BANK and, in certain circumstances, certain Additional Sellers (as defined
in the Pooling and Servicing Agreement referred to below).
(Not an interest in or obligation of Capital One Bank,
any Additional Seller or any affiliate thereof)
This certifies that CEDE & CO. (the "Class B
Certificateholder") is the registered owner of a fractional undivided interest
in certain assets of a trust (the "Trust") created pursuant to the Pooling and
Servicing Agreement, dated as of September 30, 1993 (as amended and
supplemented, the "Agreement"), as supplemented by the Series 2000-4 Supplement,
dated as of October 26, 2000 (as amended and supplemented, the "Series
Supplement"), between Capital One Bank, as Seller and Servicer, and The Bank of
New York, a New York banking corporation, as trustee (the "Trustee"). The corpus
of the Trust consists of (i) a portfolio of all receivables (the "Receivables")
existing in the consumer revolving credit card accounts and other consumer
revolving credit accounts identified under the Agreement from time to time (the
"Accounts"), (ii) all Receivables generated under the Accounts from time to time
thereafter, (iii) funds collected or to be collected from accountholders in
respect of the Receivables, (iv) all funds which are from time to time on
deposit in the Collection Account and in the Series Accounts, (v) an interest in
any Funds Collateral (as defined in the Agreement) relating to secured accounts,
(vi) the benefits of any Series Enhancement and (vii) all other assets and
interests constituting the Trust. The Holder of this Class B Certificate is
entitled to the benefit of any Series Enhancement to the extent provided in the
Series Supplement. Although a summary of certain
A-2-1
provisions of the Agreement and the Series Supplement is set forth below and on
the Summary of Terms and Conditions attached hereto and made a part hereof, this
Class B Certificate does not purport to summarize the Agreement and the Series
Supplement and reference is made to the Agreement and the Series Supplement 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 between this Class B Certificate and
the Series Supplement or the Agreement, the Series Supplement or the Agreement,
as the case may be, shall control. A copy of the Agreement and the Series
Supplement (without schedules) may be requested from the Trustee by writing to
the Trustee at the Corporate Trust Office. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the
Agreement or the Series Supplement, as applicable.
This Class B Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement and the Series Supplement, to
which Agreement and Series Supplement, each as amended and supplemented from
time to time, the Class B Certificateholder by virtue of the acceptance hereof
assents and is bound.
It is the intent of the Seller and the Investor
Certificateholders that, for federal, state and local income and franchise tax
purposes only, the Investor Certificates will qualify as indebtedness of the
Seller secured by the Receivables. The Class B Certificateholder, by the
acceptance of this Class B Certificate, agrees to treat this Class B Certificate
for federal, state and local income and franchise tax purposes as indebtedness
of the Seller.
In general, payments of principal with respect to the Class B
Certificates are limited to the Class B Invested Amount, which may be less than
the unpaid principal balance of the Class B Certificates. The Expected Final
Payment Date is the October 2005 Distribution Date, but principal with respect
to the Class B Certificates may be paid earlier or later under certain
circumstances described in the Agreement and the Series Supplement. Principal
payments with respect to the Class B Certificates will not commence until the
Class A Invested Amount is paid in full. In addition, if for one or more months
during the Accumulation Period there are not sufficient funds to pay the
Controlled Deposit Amount, then to the extent that excess funds are not
available on subsequent Distribution Dates with respect to the Accumulation
Period to make up for such shortfalls, the final payment of principal of the
Class B Certificates will occur later than the Expected Final Payment Date.
No Class B Certificate (or any interest therein) may be
acquired or held by any employee benefit or other plan (including an individual
retirement account) that is subject to the Employee Retirement Income Security
Act of 1974, as amended, or Section 4975 of the Internal Revenue Code of 1986,
as amended (each, a "Plan"), any trustee or other person acting on behalf of any
Plan, or any other person using "Plan Assets" to effect such acquisition or
holding.
Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee, by manual signature, this Class B
Certificate shall not be entitled to any benefit under the Agreement or the
Series Supplement or be valid for any purpose.
A-2-2
IN WITNESS WHEREOF, the Seller has caused this Class B
Certificate to be duly executed.
CAPITAL ONE BANK
By: ______________________
Name:
Title:
Dated: October 26, 2000
A-2-3
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class B Certificates described in the
within-mentioned Agreement and Series Supplement.
THE BANK OF NEW YORK,
as Trustee
By: ______________________
Authorized Officer
or
By: ______________________
as Authenticating Agent
for the Trustee
By: ________________________
Authorized Officer
A-2-4
CAPITAL ONE MASTER TRUST
SERIES 2000-4
CLASS B FLOATING RATE ASSET BACKED CERTIFICATE
Summary of Terms and Conditions
The Receivables consist of Principal Receivables which arise
generally from the purchase of goods and services and amounts advanced to
accountholders as cash advances and Finance Charge Receivables. This Class B
Certificate is one of a Series of Certificates entitled "Capital One Master
Trust, Series 2000-4." The Series 2000-4 Certificates are being issued in two
Classes, the first of which is known as the "Class A Floating Rate Asset Backed
Certificates, Series 2000-4" (the "Class A Certificates") and the second Class
is known as the "Class B Floating Rate Asset Backed Certificates, Series 2000-4"
(the "Class B Certificates"). In addition, as part of Series 2000-4, the Trust
is creating a third Class of uncertificated interest in the Trust which
uncertificated interest, except as expressly provided in the Series Supplement,
is deemed to be an "Investor Certificate" and is known as the "Collateral
Interest, Series 2000-4" (the "Collateral Interest"). This Class B Certificate
represents a fractional undivided interest in certain assets of the Trust. The
Trust Assets are allocated in part to the certificateholders of all outstanding
Series (the "Certificateholders' Interest") with the remainder allocated to the
Seller's Interest. The aggregate interest represented by the Class B
Certificates at any time in the Principal Receivables in the Trust shall not
exceed an amount equal to the Class B Invested Amount at such time. The Class B
Initial Invested Amount is $120,000,000. The Class B Invested Amount on any date
of determination will be an amount equal to (a) the Class B Initial Invested
Amount, minus (b) the aggregate amount of principal payments made to the Class B
Certificateholders on or prior to such date, minus (c) the aggregate amount of
Class B Investor Charge-Offs for all prior Distribution Dates, minus (d) the
aggregate amount of Reallocated Principal Collections allocated on all prior
Distribution Dates pursuant to subsection 4.08(a) of the Series Supplement
(excluding any Reallocated Principal Collections that have resulted in a
reduction in the Collateral Invested Amount pursuant to subsection 4.06(c) of
the Series Supplement), minus (e) an amount equal to the amount by which the
Class B Invested Amount has been reduced on all prior Distribution Dates
pursuant to subsection 4.06(a) of the Series Supplement and plus (f) the amount
of Excess Spread and Excess Finance Charges allocated and available on all prior
Distribution Dates pursuant to Section 4.07(d) of the Series Supplement for the
purpose of reimbursing amounts deducted pursuant to the foregoing clauses (c),
(d) and (e). Also, Capital One Bank has received an adjustment to the Seller's
Interest on the date hereof.
Subject to the terms and conditions of the Agreement, the
Seller may from time to time direct the Trustee, on behalf of the Trust, to
issue one or more new Series of Investor Certificates, which will represent
fractional undivided interests in certain of the Trust Assets.
On each Payment Date, the Paying Agent shall distribute to
each Class B Certificateholder of record on the last day of the preceding
calendar month (each, a "Record Date") such Class B Certificateholder's pro rata
share of such amounts (including amounts on deposit in the Collection Account
and the Principal Funding Account) as are payable to the Class B
Certificateholders pursuant to the Agreement and the Series Supplement.
Distributions with
A-2-5
respect to this Class B Certificate will be made by check mailed to the address
of the Class B Certificateholder of record appearing in the Certificate Register
without the presentation or surrender of this Class B Certificate or the making
of any notation thereon (except for the final distribution in respect of this
Class B Certificate) except that with respect to Class B Certificates registered
in the name of Cede & Co., the nominee for The Depository Trust Company,
distributions will be made in the form of immediately available funds. Final
payment of this Class B Certificate will be made only upon presentation and
surrender of this Class B Certificate at the office or agency specified in the
notice of final distribution delivered by the Trustee to the Class B
Certificateholders in accordance with the Agreement and the Series Supplement.
On any day occurring on or after the day on which the Invested
Amount is reduced to 5% or less of the Initial Invested Amount, the Seller has
the option to repurchase the Certificateholders' Interest in the Trust. The
repurchase price will be equal to (a) if such day is a Distribution Date, the
Reassignment Amount for such Distribution Date or (b) if such day is not a
Distribution Date, the Reassignment Amount for the Distribution Date following
such day. Following the deposit of the Reassignment Amount in the Collection
Account, the Class A Certificateholders, the Class B Certificateholders and the
Collateral Interest Holder will not have any interest in the Receivables and the
Class B Certificates will represent only the right to receive such Reassignment
Amount.
This Class B Certificate does not represent an obligation of,
or an interest in, the Seller, the Servicer or any affiliate of any of them and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency or instrumentality. This Class B Certificate is
limited in right of payment to certain Collections with respect to the
Receivables (and certain other amounts), all as more specifically set forth
hereinabove and in the Agreement and the Series Supplement.
The Agreement or any Supplement may, subject to certain
conditions, be amended by the Seller, the Servicer and the Trustee without
Certificateholder consent. The Trustee may, but shall not be obligated to, enter
into any such amendment which affects the Trustee's rights, duties or immunities
under the Agreement or otherwise.
The Agreement or any Supplement may also be amended from time
to time by the Servicer, the Seller and the Trustee, with the consent of the
Holders of Investor Certificates evidencing not less than 66"% of the aggregate
unpaid principal amount of the Investor Certificates of all adversely affected
Series, for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Agreement or any Supplement or of
modifying in any manner the rights of the Investor Certificateholders; provided,
however, that no such amendment shall (i) reduce in any manner the amount of or
delay the timing of any distributions to be made to Investor Certificateholders
or deposits of amounts to be so distributed or the amount available under any
Series Enhancement without the consent of each affected Investor
Certificateholder, (ii) change the definition of or the manner of calculating
the interest of any Investor Certificateholder without the consent of each
affected Investor Certificateholder, (iii) reduce the aforesaid percentage
required to consent to any such amendment without the consent of each Investor
Certificateholder or (iv) adversely affect the rating of any Series or Class by
each Rating Agency without the consent of the Holders of Investor Certificates
of such Series or Class evidencing not less than 66"% of the aggregate unpaid
principal amount of the Investor Certificates of such Series or Class. The
Trustee may,
A-2-6
but shall not be obligated to, enter into any such amendment which affects the
Trustee's rights, duties or immunities under the Agreement or otherwise.
The Class B Certificates are issuable in minimum denominations
of $1,000 and integral multiples of $1,000. The transfer of this Class B
Certificate shall be registered in the Certificate Register upon surrender of
this Class B Certificate for registration of transfer at any office or agency
maintained by the Transfer Agent and Registrar accompanied by a written
instrument of transfer, in a form satisfactory to the Trustee or the Transfer
Agent and Registrar, duly executed by the Class B Certificateholder or such
Class B Certificateholder's attorney, and duly authorized in writing with such
signature guaranteed, and thereupon one or more new Class B Certificates of
authorized denominations and for the same aggregate fractional undivided
interest will be issued to the designated transferee or transferees.
As provided in the Agreement and subject to certain
limitations therein set forth, Class B Certificates are exchangeable for new
Class B Certificates evidencing like aggregate fractional undivided interests as
requested by the Class B Certificateholder surrendering such Class B
Certificates. No service charge may be imposed for any such exchange but the
Servicer or Transfer Agent and Registrar may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.
The Servicer, the Trustee, the Paying Agent and the Transfer
Agent and Registrar and any agent of any of them, may treat the person in whose
name this Class B Certificate is registered as the owner hereof for all
purposes, and neither the Servicer nor the Trustee, the Paying Agent, the
Transfer Agent and Registrar, nor any agent of any of them, shall be affected by
notice to the contrary except in certain circumstances described in the
Agreement.
THIS CLASS B 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.
A-2-7
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 face of the within Certificate in every
particular, without alteration, enlargement or any change whatsoever.
A-2-8
EXHIBIT C
FORM OF MONTHLY SERVICING OFFICER'S CERTIFICATE
CAPITAL ONE BANK
CAPITAL ONE MASTER TRUST
SERIES 2000-4
The undersigned, a duly authorized representative of Capital One Bank, as
Servicer, pursuant to the Pooling and Servicing Agreement, dated as of September
30, 1993 (as amended and supplemented, the "Agreement"), as supplemented by the
Series 2000-4 Supplement (as amended and supplemented, the "Series Supplement"),
dated as of October 26, 2000, each between Capital One Bank and The Bank of New
York, as Trustee, does hereby certify as follows:
1. Capitalized terms used in this Certificate have their respective
meanings as set forth in the Agreement or Series Supplement, as applicable.
2. Capital One Bank is, as of the date hereof, the Servicer under the
Agreement.
3. The undersigned is a Servicing Officer.
4. This Certificate relates to the Distribution Date occurring on
________.
5. As of the date hereof, to the best knowledge of the undersigned,
the Servicer has performed in all material respects all its obligations
under the Agreement through the Monthly Period preceding such Distribution
Date [or, if there has been a default in the performance of any such
obligation, set forth in detail the (i) nature of such default, (ii) the
action taken by the Seller and Servicer, if any, to remedy such default and
(iii) the current status of each such default; if applicable, insert
"None"].
6. As of the date hereof, to the best knowledge of the undersigned, no
Pay Out Event occurred on or prior to such Distribution Date.
7. As of the date hereof, to the best knowledge of the undersigned, no
Lien has been placed on any of the Receivables other than pursuant to the
Agreement [or, if there is a Lien, such Lien consists of_________].
IN WITNESS WHEREOF, the undersigned has duly executed and delivered
this Certificate this ______ day of __________, 20__.
CAPITAL ONE BANK,
as Servicer
By:________________________
Name:
Title:
C-2
EXHIBIT D
FORM OF INVESTMENT LETTER
[Date]
Re: Capital One Master Trust;
Purchases of Series 2000-4 Collateral Interest
Ladies and Gentlemen:
This letter (the "Investment Letter") is delivered by the undersigned (the
"Purchaser") pursuant to Section 10.07 of the Series 2000-4 Supplement, dated as
of October 26, 2000 (the "Series Supplement") to the Pooling and Servicing
Agreement, dated as of September 30, 1993 (as amended and supplemented, the
"Agreement"), each between The Bank of New York, as Trustee, and Capital One
Bank, as Seller and Servicer. Capitalized terms used herein without definition
shall have the meanings set forth in the Agreement. The Purchaser represents to
and agrees with the Seller as follows:
(a) The Purchaser has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks
of its investment in the Collateral Interest and is able to bear the
economic risk of such investment.
(b) The Purchaser is an "accredited investor," as defined in Rule 501,
promulgated by the Securities and Exchange Commission (the
"Commission") under the Securities Act of 1933, as amended (the
"Securities Act"), or is a sophisticated institutional investor. The
Purchaser understands that the offering and sale of the Collateral
Interest has not been and will not be registered under the Securities
Act and has not and will not be registered or qualified under any
applicable "Blue Sky" law, and that the offering and sale of the
Collateral Interest has not been reviewed by, passed on or submitted
to any federal or state agency or commission, securities exchange or
other regulatory body.
(c) The Purchaser is acquiring an interest in the Collateral Interest
without a view to any distribution, resale or other transfer thereof
except, with respect to any Collateral Interest or any interest or
participation therein, as contemplated in the following sentence. The
Purchaser will not resell or otherwise transfer any interest or
participation in the Collateral Interest, except in accordance with
Section 10.07 of the Series Supplement and (i) in a transaction exempt
from the registration requirements of the Securities Act and
applicable state securities or "blue sky" laws; (ii) to the Seller or
any affiliate of the Seller; or (iii) to a person who the Purchaser
reasonably believes is a qualified institutional buyer (within the
meaning thereof in
Rule 144A under the Securities Act) that is aware that the resale or
other transfer is being made in reliance upon Rule 144A. In connection
therewith, the Purchaser hereby agrees that it will not resell or
otherwise transfer the Collateral Interest or any interest therein
unless the purchaser thereof provides to the addressee hereof a letter
substantially in the form hereof.
(d) No portion of the Collateral Interest or any interest therein may be
Transferred, and each Assignee will certify that it is not, (a) an
"employee benefit plan" (as defined in Section 3(3) of ERISA),
including governmental plans and church plans, (b) any "plan" (as
defined in Section 4975(e)(1) of the Code) including individual
retirement accounts and Xxxxx plans, or (c) any other entity whose
underlying assets include "plan assets" (within the meaning of
Department of Labor Regulation Section 2510.3-101, 29 X.X.X.xx.
2510.3-101 or otherwise under ERISA) by reason of a plan's investment
in the entity, including, without limitation, an insurance company
general account.
(e) This Investment Letter has been duly executed and delivered 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.
Very truly yours,
[NAME OF PURCHASER]
By: ___________________________
Name:
Title:
AGREED TO AS OF THE DATE FIRST
ABOVE WRITTEN:
CAPITAL ONE BANK
By: _______________________
Name:
Title:
D-2
