$1,261,130,000
HONDA AUTO RECEIVABLES 2006-1 OWNER TRUST
$298,000,000 4.93378% ASSET BACKED NOTES, CLASS A-1
$316,000,000 5.10% ASSET BACKED NOTES, CLASS A-2
$400,000,000 5.07% ASSET BACKED NOTES, CLASS A-3
$247,130,000 5.08% ASSET BACKED NOTES, CLASS A-4
AMERICAN HONDA RECEIVABLES CORP.
UNDERWRITING AGREEMENT
March 21, 2006
Barclays Capital Inc.
As Representative of the Several Underwriters
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
1. Introductory. American Honda Receivables Corp., a California
corporation (the "Company"), proposes, subject to the terms and conditions
stated herein, to cause the Honda Auto Receivables 2006-1 Owner Trust (the
"Trust") to issue and sell $298,000,000 aggregate principal amount of 4.93378%
Asset Backed Notes, Class A-1 (the "Class A-1 Notes"), $316,000,000 aggregate
principal amount of 5.10% Asset Backed Notes, Class A-2 (the "Class A-2 Notes")
$400,000,000 aggregate principal amount of 5.07% Asset Backed Notes, Class A-3
(the "Class A-3 Notes") and $247,130,000 aggregate principal amount of 5.08%
Asset Backed Notes, Class A-4 (the "Class A-4 Notes" and together with the Class
A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, the "Notes"). The Notes
will be issued pursuant to the Indenture, to be dated as of March 1, 2006 (the
"Indenture"), between the Trust and JPMorgan Chase Bank, N.A. (the "Indenture
Trustee").
Concurrently with the issuance and sale of the Notes as contemplated
herein, the Trust will issue $42,359,996.17 aggregate principal amount of
certificates of beneficial interest (the "Certificates"), each representing an
interest in the Owner Trust Estate. The Company will retain the Certificates.
The Certificates will be issued pursuant to the Amended and Restated Trust
Agreement, to be dated March 28, 2006 (the "Trust Agreement"), between the
Company and Citibank, N.A., as owner trustee (in such capacity, the "Owner
Trustee") and Wilmington Trust Company, as Delaware trustee (in such capacity,
the "Delaware Trustee"). The Certificates are subordinated to the Notes.
The assets of the Trust will include, among other things, a pool of
retail installment sale and conditional sale contracts secured by new and used
Honda and Acura motor vehicles (the "Receivables"), with respect to Actuarial
Receivables, certain monies due thereunder on or after March 1, 2006 (the
"Cutoff Date"), and with respect to Simple Interest
Receivables, certain monies due or received thereunder on or after the Cutoff
Date, such Receivables to be sold to the Trust by the Company and to be serviced
for the Trust by American Honda Finance Corporation ("AHFC" or, in its capacity
as servicer, the "Servicer"). Capitalized terms used but not defined herein have
the meanings ascribed thereto in the Sale and Servicing Agreement, to be dated
as of March 1, 2006 (the "Sale and Servicing Agreement"), by and among the
Trust, the Company and the Servicer or, if not defined therein, in the
Indenture, the Trust Agreement or the Receivables Purchase Agreement, to be
dated as of March 1, 2006 between AHFC and the Company (the "Receivables
Purchase Agreement"), as the case may be. As used herein, "Basic Documents"
shall have the meaning specified in the Sale and Servicing Agreement.
At or prior to the time when sales to investors of the Notes were
first made to investors by the several Underwriters named in Schedule A hereto
(collectively, the "Underwriters") for which Barclays Capital Inc. is acting as
representative (in such capacity, the "Representative"), which was approximately
3:24 p.m. on March 21, 2006 (the "Time of Sale"), the Company had prepared the
following information (collectively, the "Time of Sale Information"): the
preliminary prospectus supplement dated March 21, 2006 relating to the Notes and
containing all information to be included in the Final Prospectus (as defined
below) other than pricing related information and accompanied by the base
prospectus dated March 21, 2006 (together, along with information referred to
under the caption "Static Pools" therein regardless of whether it is deemed a
part of the Registration Statement or Final Prospectus, the "Preliminary
Prospectus"). If, subsequent to the Time of Sale and prior to the Closing Date
(as defined below), the Company wishes to convey additional or changed
information in order to make the Time of Sale Information, in the light of the
circumstances under which statements in the Time of Sale Information were made,
not misleading, and as a result investors in the Notes elect to terminate their
old "Contracts of Sale" (within the meaning of Rule 159 under the Securities Act
of 1933, as amended (the "Act")) for any Notes and enter into new Contracts of
Sale with the Underwriters, then "Time of Sale Information" will refer to the
information conveyed to investors at the time of entry into the first such new
Contract of Sale, in an amended Preliminary Prospectus approved by the Company
and the Representative that corrects such material misstatements or omissions (a
"Corrected Prospectus") and "Time of Sale" will refer to the time and date on
which such new Contracts of Sale were entered into.
The Company hereby agrees with the several Underwriters as follows:
2. Representations and Warranties of the Company and AHFC. The Company
and AHFC, jointly and severally, represent and warrant to, and agree with, the
several Underwriters that:
(a) A registration statement on Form S-3 (No. 333-132320),
including a prospectus, relating to the Notes has been filed with the
Securities and Exchange Commission (the "Commission") and has become
effective and is still effective as of the date hereof. A Preliminary
Prospectus was filed with the Commission pursuant to Rule 424(b) of the Act
and the rules and regulations thereunder (the "Rules and Regulations"). A
final prospectus supplement dated the date hereof, containing the same
information as
2
the Preliminary Prospectus, but including the pricing related information
and accompanied by the base prospectus dated March 21, 2006 (together,
along with information referred to under the caption "Static Pools" therein
regardless of whether it is deemed a part of the Registration Statement or
Final Prospectus, the "Final Prospectus", and together with the Preliminary
Prospectus and any Corrected Prospectus, the "Prospectus") will be filed
with the Commission pursuant to Rule 424(b) of the Rules and Regulations
("Rule 424(b)") within the time period required thereby. Such registration
statement, as amended as of its effective date (including without
limitation each deemed effective date with respect to the Company and the
Underwriters pursuant to Rule 430B(f)(2) of the Rules and Regulations) is
hereinafter referred to as the "Registration Statement." No "issuer free
writing prospectus" as defined in Rule 433 of the Rules and Regulations
relating to the Notes has been or will be used by or on behalf of the
Company.
(b) On the effective date of the Registration Statement
(including without limitation each deemed effective date with respect to
the Company and the Underwriters pursuant to Rule 430B(f)(2) of the Rules
and Regulations) relating to the Notes, such Registration Statement
conformed and on the Closing Date will conform in all respects to the
requirements of the Act and the Rules and Regulations and did not include
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein
not misleading, and as of each such date, such Registration Statement
conforms in all respects to the requirements contained in the Act and the
Rules and Regulations. As of the date of the first use of the Preliminary
Prospectus, as of the earlier of the date of the first use of the Final
Prospectus and the Time of Sale of the Notes, and as of the Closing Date,
each Prospectus will conform in all respects to the requirements of the Act
and the Rules and Regulations, and none of such documents includes or will
include any untrue statement of a material fact or omits or will omit to
state any material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.
The two preceding sentences do not apply to statements in or omissions from
the Registration Statement or the Prospectus based upon written information
furnished to the Company by any Underwriter through the Representative
specifically for use therein, it being understood and agreed that the only
such information is that described as such in Section 7(b).
(c) The Time of Sale Information, at the Time of Sale, did not,
and at the Closing Date will not, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that the Company makes no
representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with the Underwriter Information
(as defined herein).
(d) The Notes are "asset backed securities" within the meaning
of, and satisfy the requirements for use of, Form S-3 under the Act.
3
(e) The documents incorporated by reference in the Registration
Statement and Prospectus, at the time they were or hereafter are filed with
the Commission, complied and will comply in all material respects to the
requirements of the Act or the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), as applicable, and the rules and regulations
thereunder; and any further documents so filed and incorporated by
reference in the Prospectus, when such documents are filed with the
Commission, will conform in all material respects to the requirements of
the Act or the Exchange Act, as applicable, and the Rules and Regulations.
(f) The Company is not, and on the date on which the first bona
fide offer of the Notes is made, will not be an "ineligible issuer" as
defined in Rule 405. The Company has caused to be filed with the Commission
on March 21, 2006 the Preliminary Prospectus.
(g) Each of the Company and AHFC has been duly incorporated and
is an existing corporation in good standing under the laws of the State of
California, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Prospectus; and
each of the Company and AHFC is duly qualified to do business as a foreign
corporation in good standing in all other jurisdictions in which its
ownership or lease of property or the conduct of its business requires such
qualification.
(h) No consent, approval, authorization or order of, or filing
with, any governmental agency or body or any court is required to be
obtained or made by the Company, AHFC or the Trust for the consummation of
the transactions contemplated by this Agreement and the Basic Documents in
connection with the issuance of the Notes and the Certificates and the sale
by the Company of the Notes, except such as have been obtained and made
under the Act, such as may be required under state securities laws and the
filing of any financing statements required to perfect the Company's, the
Trust's and the Indenture Trustee's interest in the Receivables, which
financing statements will be filed in the appropriate offices prior to the
Closing Date (as such term is defined in Section 3).
(i) Neither the Company nor AHFC is in violation of its Articles
of Incorporation or By-laws or in default in the performance or observance
of any obligation, agreement, covenant or condition contained in any
agreement or instrument to which it is a party or by which it or its
properties are bound that could have a material adverse effect on the
transactions contemplated herein or in the Basic Documents. The execution,
delivery and performance of this Agreement and the Basic Documents by the
Company and AHFC, and the issuance of the Notes and the Certificates and
the sale by the Company of the Notes and the compliance by the Company and
AHFC with the terms and provisions hereof and thereof will not, subject to
obtaining any consents or approvals as may be required under the securities
or "blue sky" laws of various jurisdictions, result in a breach or
violation of any of the terms and provisions of, or constitute a default
under, any statute, rule, regulation or order of any governmental agency or
body or any
4
court, domestic or foreign, having jurisdiction over the Company or AHFC or
any of their respective properties, or any agreement or instrument to which
the Company or AHFC is a party or by which the Company or AHFC is bound or
to which any of the properties of the Company or AHFC is subject, or the
Articles of Incorporation or By-laws of the Company and AHFC, and the
Company has full power and authority to authorize the issuance of the Notes
and the Certificates and to sell the Notes as contemplated by this
Agreement, the Indenture and the Trust Agreement, and each of the Company
and AHFC has full power and authority to enter into this Agreement and the
Basic Documents and to consummate the transactions contemplated hereby and
thereby.
(j) On the Closing Date, the Company will have directed the Owner
Trustee to authenticate and execute the Certificates and, when delivered
and paid for pursuant to the Trust Agreement, the Certificates will have
been duly issued and delivered and will constitute valid and legally
binding obligations of the Trust, entitled to the benefits provided in the
Trust Agreement and enforceable in accordance with their terms.
(k) Except as disclosed in the Prospectus, there are no pending
actions, suits or proceedings against or affecting the Company or AHFC or
any of their respective properties that, if determined adversely to the
Company or AHFC, would individually or in the aggregate have a material
adverse effect on the condition (financial or other), business or results
of operations of the Company or AHFC, respectively, or would materially and
adversely affect the ability of the Company or AHFC to perform its
obligations under this Agreement or the other Basic Documents to which it
is a party, or which are otherwise material in the context of the issuance
and sale of the Notes or the issuance of the Certificates; and no such
actions, suits or proceedings are threatened or, to the Company's or AHFC's
knowledge, contemplated.
(l) As of the Closing Date, the representations and warranties of
the Company and AHFC contained in the Basic Documents will be true and
correct.
(m) This Agreement has been duly authorized, executed and
delivered by each of the Company and AHFC.
(n) The Company has authorized the conveyance of the Receivables
to the Trust, and, as of the Closing Date, the Company has directed the
Trust to execute and issue the Notes and the Certificates and to sell the
Notes.
(o) The Company's assignment and delivery of the Receivables to
the Trust as of the Closing Date will vest in the Trust all of the
Company's right, title and interest therein, subject to no prior lien,
mortgage, security interest, pledge, adverse claim, charge or other
encumbrance.
5
(p) The Trust's assignment of the Receivables to the Indenture
Trustee pursuant to the Indenture will vest in the Indenture Trustee, for
the benefit of the Noteholders, a first priority perfected security
interest therein, subject to no prior lien, mortgage, security interest,
pledge, adverse claim, charge or other encumbrance.
(q) The computer tape of the Receivables created as of March 1,
2006, and made available to the Representative by the Servicer was complete
and accurate as of the date thereof and includes an identifying description
of the Receivables that are listed on Schedule A to the Sale and Servicing
Agreement.
(r) Any taxes, fees and other governmental charges in connection
with the execution, delivery and performance of this Agreement, the Basic
Documents, the Notes and the Certificates and any other agreements
contemplated herein or therein shall have been paid or will be paid by the
Company at or prior to the Closing Date to the extent then due.
(s) The consummation of the transactions contemplated by this
Agreement and the Basic Documents, and the fulfillment of the terms hereof
and thereof, will not conflict with or result in a breach of any of the
terms or provisions of, or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon any of the property or
assets of the Company or AHFC pursuant to the terms of, any indenture,
mortgage, deed of trust, loan agreement, guarantee, lease financing
agreement or similar agreement or instrument under which the Company or
AHFC is a debtor or guarantor.
(t) The Company is not and, after giving effect to the issuance
of the Certificates and the offering and sale of the Notes and the
application of the proceeds thereof as described in the Prospectus, will
not be required to be registered as an "investment company" as defined in
the Investment Company Act of 1940, as amended (the "Investment Company
Act").
(u) In connection with the offering of the Notes in the State of
Florida, the Company and AHFC hereby certify that they have complied with
all provisions of Section 517.075 of the Florida Securities and Investor
Protection Act.
3. Purchase, Sale and Delivery of Notes. On the basis of the
representations, warranties and agreements herein contained, but subject to the
terms and conditions herein set forth, the Company agrees to sell to the
Underwriters, and the Underwriters agree, severally and not jointly, to purchase
from the Company, at a purchase price of, in the case of (i) the Class A-1
Notes, 99.87500% of the principal amount thereof; (ii) the Class A-2 Notes,
99.82170% of the principal amount thereof; (iii) the Class A-3 Notes, 99.77603%
of the principal amount thereof; and (iv) the Class A-4 Notes, 99.74146% of the
principal amount thereof, the respective principal amounts of each Class of the
Notes set forth opposite the names of the Underwriters in Schedule A hereto.
6
The Company will deliver against payment of the purchase price, the
Notes of each Class in the form of one or more permanent global securities in
definitive form (the "Global Notes") deposited with the Indenture Trustee as
custodian for The Depository Trust Company ("DTC") and registered in the name of
Cede & Co., as nominee for DTC. Interests in any permanent Global Notes will be
held only in book-entry form through DTC, except in the limited circumstances
described in the Prospectus. Payment for the Notes shall be made by the
Underwriters in Federal (same day) funds by official check or checks or wire
transfer to an account in New York previously designated to the Representative
by the Company at a bank acceptable to the Representative at the offices of
XxXxx Xxxxxx LLP, New York, New York at 10:00 A.M., New York City time, on March
28, 2006 or at such other time not later than seven full business days
thereafter as the Representative and the Company determine, such time being
herein referred to as the "Closing Date", against delivery to the Indenture
Trustee as custodian for DTC of the Global Notes representing all of the Notes.
The Global Notes will be made available for checking at the above office of
XxXxx Xxxxxx LLP at least 24 hours prior to the Closing Date.
The Company will deliver the Certificates to the above office of XxXxx
Xxxxxx LLP on the Closing Date. The certificate for the Certificates so to be
delivered will be in definitive form, in authorized denominations and registered
in the name of the Company and will be made available for checking at the above
office of XxXxx Xxxxxx LLP at least 24 hours prior to the Closing Date.
Pursuant to Rule 15c6-1(d) under the Exchange Act, the parties hereto
have agreed that the Closing Date will be not later than March 28, 2006, unless
otherwise agreed to as described above.
4. Offering by Underwriters. It is understood that the several
Underwriters propose to offer the Notes for sale to the public as set forth in
the Prospectus, and each Underwriter represents, warrants and covenants,
severally and not jointly, to the Company and AHFC that: (i) it has not offered
or sold and, prior to the expiry of the period of six months from the Closing
Date, will not offer or sell any Notes to persons in the United Kingdom except
to persons whose ordinary activities involve them in acquiring, holding,
managing or disposing of investments (as principal or agent) for the purposes of
their businesses or who it is reasonable to expect will acquire, hold, manage or
dispose of investments (as principal or agent) for the purposes of their
businesses, or otherwise in circumstances that have not resulted and will not
result in an offer to the public in the United Kingdom within the meaning of the
Public Offers of Securities Regulations 1995, as amended, (ii) it has complied
and will comply with all applicable provisions of the Financial Services and
Markets Act 2000 with respect to anything done by it in relation to the Notes
in, from or otherwise involving the United Kingdom, (iii) it is a person of a
kind described in Articles 19 or 49 of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2001, as amended (the "Financial Promotion
Order") and (iv) it has only communicated or caused to be communicated, and will
only communicate or cause to be communicated, in the United Kingdom any document
received by it in connection with the issue of the Notes to a person who is of a
kind described in Articles 19 or 49 of the Financial Promotion Order or who is a
person to whom such document may otherwise lawfully be communicated.
7
5A. Certain Agreements of the Company. The Company agrees with the
several Underwriters:
(a) The Company will file the Final Prospectus, properly
completed, with the Commission pursuant to and in accordance with
subparagraph (2) (or, if applicable and if consented to by the
Representative, subparagraph (5)) of Rule 424(b) no later than the second
business day following the date it is first used. The Company will advise
the Representative promptly of any such filing pursuant to Rule 424(b).
(b) The Company shall file the final pricing information, which
may be posted on a Bloomberg screen or distributed via Bloomberg, as a free
writing prospectus.
(c) The Company will advise the Representative promptly, in
writing, of any proposal to amend or supplement the Registration Statement
or the Prospectus and will not effect such amendment or supplementation
without the Representative's reasonable consent; and the Company will also
advise the Representative promptly of any amendment or supplementation of
the Registration Statement or the Prospectus and of the institution by the
Commission of any stop order proceedings in respect of the Registration
Statement and will use its best efforts to prevent the issuance of any such
stop order and to obtain as soon as possible its lifting, if issued.
(d) If, at any time when a prospectus relating to the Notes is
required to be delivered under the Act in connection with sales by any
Underwriter or dealer, any event occurs as a result of which the Prospectus
as then amended or supplemented would include an untrue statement of a
material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they
were made, not misleading, or if it is necessary at any time to amend the
Prospectus to comply with the Act, the Company will promptly notify the
Representative of such event and will promptly prepare and file with the
Commission (subject to the Representative's prior review pursuant to
Section 5(b)), at its own expense, an amendment or supplement which will
correct such statement or omission, or an amendment which will effect such
compliance. Neither the Representative's consent to, nor the Underwriters
delivery of, any such amendment or supplement shall constitute a waiver of
any of the conditions set forth in Section 6.
(e) The Company will cause the Trust to make generally available
to Noteholders, as soon as practicable, but no later than sixteen months
after the date hereof, an earnings statement of the Trust covering a period
of at least twelve consecutive months beginning after the later of (i) the
effective date of the registration statement relating to the Notes and (ii)
the effective date of the most recent post-effective amendment to the
Registration Statement to become effective prior to the date of this
Agreement and, in each case, satisfying the provisions of Section 11(a) of
the Act (including Rule 158 promulgated thereunder).
(f) The Company will furnish to the Underwriters copies of each
Prospectus, the Registration Statement and all amendments and supplements
to such
8
documents, in each case as soon as available and in such quantities as the
Representative reasonably requests. The Final Prospectus shall be furnished
on or prior to 3:00 P.M., New York time, on the business day following the
execution and delivery of this Agreement. All other such documents shall be
so furnished as soon as available. The Company will pay the expenses of
printing and distributing to the Underwriters all such documents.
(g) The Company will arrange for the qualification of the Notes
for offering and sale and the determination of their eligibility for
investment under the laws of such jurisdictions as the Representative may
reasonably designate and will continue such qualifications in effect so
long as required for the distribution of the Notes; provided that in
connection therewith the Company shall not be required to qualify as a
foreign corporation to do business or to file a general consent to service
of process in any such jurisdiction.
(h) For a period from the date of this Agreement until the
retirement of the Notes (i) the Company will furnish to the Representative
and, upon request, to each of the other Underwriters, copies of each
certificate and the annual statements of compliance delivered to the
Indenture Trustee pursuant to Section 3.09 of the Indenture and Sections
3.10 and 3.11 of the Sale and Servicing Agreement and the annual
independent certified public accountant's servicing reports furnished to
the Trust pursuant to Section 3.12 of the Sale and Servicing Agreement, by
first-class mail as soon as practicable after such statements and reports
are furnished to the Indenture Trustee or the Trust, as the case may be,
and (ii) such other forms of periodic certificates or reports as may be
delivered to the Indenture Trustee, the Owner Trustee or the Noteholders
under the Indenture, the Sale and Servicing Agreement or the other Basic
Documents.
(i) So long as any Note is outstanding, the Company will furnish
to the Representative by first-class mail as soon as practicable, (i) all
documents distributed, or caused to be distributed, by the Company to the
Noteholders, (ii) all documents filed or caused to be filed by the Company
with the Commission pursuant to the Exchange Act or any order of the
Commission thereunder and (iii) such other information in the possession of
the Company concerning the Trust as the Representative from time to time
may reasonably request.
(j) Subject to the provisions of Section 10 hereof, the Company
will pay all expenses incident to the performance of its obligations under
this Agreement and will reimburse the Underwriters (if and to the extent
incurred by them) for any filing fees and other expenses (including fees
and disbursements of counsel) incurred by them in connection with
qualification of the Notes for sale in jurisdictions that the
Representative may designate pursuant to Section 5(f) hereof and
determination of their eligibility for investment under the laws of such
jurisdictions as the Representative reasonably designates and the printing
of memoranda relating thereto, for any fees charged by investment rating
agencies for the rating of the Notes, for any travel expenses of the
officers and employees of the Underwriters and any other expenses of the
Underwriters
9
in connection with attending or hosting meetings with prospective
purchasers of the Notes and for expenses incurred in distributing the
Prospectus (including any amendments and supplements thereto).
(k) To the extent, if any, that the rating provided with respect
to the Notes by Xxxxx'x Investors Service, Inc. ("Xxxxx'x"), Standard &
Poor's, a division of The XxXxxx-Xxxx Companies, Inc. ("Standard &
Poor's"), or Fitch Ratings ("Fitch" and, together with Standard & Poor's
and Xxxxx'x, the "Rating Agencies") is conditional upon the furnishing of
documents or the taking of any other action by the Company, the Company
shall furnish such documents and take any such other action.
(l) On or before the Closing Date, the Company and AHFC shall
annotate and indicate unambiguously in the computer records of the Company
and AHFC relating to the Receivables to show the Trust's absolute ownership
of the Receivables, and from and after the Closing Date neither the Company
nor AHFC shall take any action inconsistent with the Trust's ownership of
such Receivables, other than as permitted by the Sale and Servicing
Agreement.
5B. Certain Agreements of the Underwriters. Each of the several
Underwriters, for itself only, represents, warrants and agrees with the Company
as follows:
Other than the Preliminary Prospectus and the Final Prospectus, each
Underwriter has not conveyed and will not convey, without the Company's prior
written approval, to any potential investor in the Notes any other written
material of any kind relating to any "issuer information" as defined in Rule
433(h)(2) of the Act, or the Notes that would constitute a "prospectus" or a
"free writing prospectus," each as defined in the Act ("Prohibited Materials"),
including, but not limited to the materials constituting a "road show"
presentation to Potential Investors (other than use of such materials as part of
the road show itself) and any "ABS informational and computational materials"
within the meaning of Item 1101(a) of Regulation AB promulgated by the
Commission under the Act and the Securities Exchange Act of 1934, as amended;
provided, however, that you may convey to one or more of your Potential
Investors (i) information permitted in Rule 134 under the Act or previously
included in the Preliminary Prospectus and (ii) a free writing prospectus, as
defined in Rule 405 under the Act, containing only: (a) a column or other entry
showing the status of the subscriptions for each class of the Notes (both for
the issuance as a whole and for each underwriter's specific retention) and
confirmation information, (b) expected settlement date and expected and actual
pricing parameters of the Notes, (c) information relating to the class, size,
rating, price, CUSIP, coupon, yield, spread, benchmark, status of the Notes, the
expected final payment date, the trade date and payment window of one or more
classes of Notes, and the weighted average life of any class of Notes, (d)
expected maturities of any class of Notes, and (e) the eligibility of the Notes
to be purchased by XXXXX plans provided that, in the case of clauses (i) and
(ii), such information is posted on a Bloomberg screen or distributed via
Bloomberg and, in the case of clause (ii), other than the final pricing terms,
which will be posted on a Bloomberg screen or distributed via Bloomberg, such
free writing prospectus shall not contain information that would require the
issuer to file such free writing prospectus pursuant to Rule 433 under the Act.
10
6. Conditions of the Obligations of the Underwriters. The obligations
of the several Underwriters to purchase and pay for the Notes on the Closing
Date will be subject to the accuracy of the representations and warranties on
the part of the Company and AHFC herein on the Closing Date, to the accuracy of
the statements of Company and AHFC officers made pursuant to the provisions
hereof, to the performance by the Company and AHFC of their respective
obligations hereunder and to the following additional conditions precedent:
(a) The Representative shall have received a letter, dated the
date hereof or the Closing Date, of KPMG LLP, in form and substance
satisfactory to the Representative and counsel for the Underwriters,
confirming that they are independent public accountants within the meaning
of the Act and the applicable Rules and Regulations and stating in effect
that (i) they have performed certain specified procedures as a result of
which they determined that certain information of an accounting, financial
or statistical nature (which is limited to accounting, financial or
statistical information derived from the general accounting records of the
Trust, AHFC and the Company) set forth in the Registration Statement and
each Prospectus (and any supplements thereto), agrees with the accounting
records of the Trust, AHFC and the Company, excluding any questions of
legal interpretation, and (ii) they have performed certain specified
procedures with respect to the Receivables.
(b) Prior to the Closing Date, no stop order suspending the
effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the
knowledge of the Company or the Representative, shall be contemplated by
the Commission.
(c) Subsequent to the execution and delivery of this Agreement,
there shall not have occurred (i) any change, or any development or event
involving a prospective change, in or affecting particularly the business,
properties, condition (financial or otherwise) or results of operations of
the Company or AHFC which, in the judgment of a majority in interest of the
Underwriters (including the Representative), materially impairs the
investment quality of any Class of the Notes or makes it impractical or
inadvisable to proceed with completion of the public offering or the sale
of and payment for any Class of the Notes; (ii) any suspension or
limitation of trading in securities generally on the New York Stock
Exchange, or any setting of minimum prices for trading on such exchange;
(iii) any banking moratorium declared by Federal, California or New York
authorities; or (iv) any outbreak or escalation of major hostilities in
which the United States is involved, any declaration of war by Congress or
any substantial national or international calamity or emergency if, in the
judgment of a majority in interest of the Underwriters (including the
Representative), the effect of any such outbreak, escalation, declaration,
calamity or emergency makes it impractical or inadvisable to proceed with
completion of the public offering or the sale of and payment for any Class
of the Notes.
(d) The Representative shall have received an opinion of Xxxx,
Forward, Xxxxxxxx & Scripps LLP, special California counsel to the Company
and AHFC, or of such other California counsel satisfactory to the
Representative, dated the Closing Date
11
and satisfactory in form and substance to the Representative and in form
and scope to counsel for the Underwriters, to the effect that:
(i) Each of AHFC and the Company has the corporate power and
corporate authority to execute and deliver the Receivables Purchase
Agreement, and to incur its obligations set forth therein.
(ii) Each of AHFC and the Company has the corporate power and
corporate authority to execute and deliver the Sale and Servicing
Agreement, and to incur its obligations set forth therein.
(iii) Each of AHFC and the Company has the corporate power and
corporate authority to carry on its business as described in the
Prospectus.
(iv) The execution and delivery by AHFC of each of the Basic
Documents to which AHFC is a party, and the incurring by AHFC of the
obligations of AHFC thereunder, have been duly authorized by all
necessary corporate action on the part of AHFC, and each of the Basic
Documents to which AHFC is a party has been duly executed and
delivered by AHFC. The execution and delivery by the Company of each
of the Basic Documents to which the Company is a party, and the
incurring by the Company of the obligations of the Company thereunder,
have been duly authorized by all necessary corporate action on the
part of the Company, and each of the Basic Documents to which the
Company is a party has been duly executed and delivered by the
Company.
(v) The direction by the Company to the Indenture Trustee to
authenticate the Notes, as set forth in a letter dated as of the
Closing Date, and the direction by the Company to the Owner Trustee to
execute and deliver to the Indenture Trustee for authentication the
Notes, as set forth in a letter dated as of the Closing Date, have
been duly authorized by all necessary corporate action on the part of
the Company.
(vi) The direction by the Company to the Owner Trustee to
authenticate and deliver the Certificates, as set forth in a letter
dated as of the Closing Date, has been duly authorized by all
necessary corporate action on the part of the Company.
(vii) The execution and delivery by AHFC of each of the Basic
Documents to which AHFC is a party, and the incurring by AHFC of the
obligations of AHFC thereunder, do not violate any federal or
California statute, rule or regulation applicable to AHFC. The
execution and delivery by the Company of each of the Basic Documents
to which the Company is a party, and the incurring by the Company of
the obligations of the Company thereunder, do not violate any federal
or California statute, rule or regulation applicable to the Company.
12
(viii) Assuming that AHFC follows its standard operating
procedures for creating and perfecting security interests in
California Financed Vehicles, as described in an Officers' Certificate
executed by AHFC and attached hereto, and relying solely on such
Officers' Certificate with respect to such facts (and AHFC has not
informed us that it has not followed, or that it will not continue to
follow, its standard operating procedures in connection with the
creation and perfection of security interests in the California
Financed Vehicles), AHFC has acquired or will acquire a perfected
security interest in each California Financed Vehicle that will be
prior to any other security interest therein created under Division 9
of the California Uniform Commercial Code.
(ix) No filing or other action is necessary to maintain the
perfection of the security interest in the California Financed
Vehicles created by the California Receivables and acquired by the
Seller, the Trust or the Indenture Trustee, as applicable. Such
counsel may note that unless and until the obligors under the
California Receivables receive effective notice of the transfer to the
Seller, the Trust or the Indenture Trustee (as the case may be) and of
the assignment of the rights to payment, such obligors are entitled to
make payments to and accept releases and discharges from AHFC, and,
for so long as AHFC is named as the legal owner and lienholder on any
certificate of title with respect to any California Financed Vehicle,
AHFC has the power to release the security interest in such California
Financed Vehicle or to make another assignment of such security
interest to an assignee that becomes the lienholder named on the
related certificate of title, which power may be improperly exercised
either through fraud or inadvertence;
(x) No consent, approval, authorization or other action by, or
filing with, any federal or California governmental authority, or any
order or decree, or any modification of any order or decree, from any
California court, is required for the execution and delivery by each
of AHFC and the Company of each of the Basic Documents to which it is
a party or the incurring of its obligations thereunder, or if
required, the requisite consent, approval, or authorization has been
obtained, the requisite filing has been accomplished, or the requisite
action has been taken.
(xi) The statements in the Prospectus under the heading "Certain
Legal Aspects of the Receivables," to the extent that they constitute
matters of State of California law or State of California legal
conclusions, provide a fair and accurate summary in all material
respects of such law or conclusions; provided, however, that we
express no opinion with respect to statements in the next to last
paragraph under the subheading "Consumer Protection Laws," as to which
AHRC is receiving an opinion of counsel (from Xxxxxxxx, Xxxxxx,
Xxxxxxx & Xxxxxxx LLP), as described therein.
(e) The Representative shall have received an opinion of Xxxxxx &
Bird LLP, special counsel to the Company and AHFC, dated the Closing Date
and satisfactory
13
in form and substance to the Representative and in form and scope to
counsel for the Underwriters, to the effect that:
(i) each of the Company and AHFC is validly existing and in good
standing under the laws of the State of California;
(ii) when the Notes have been validly executed, authenticated and
delivered in accordance with the provisions of the Indenture and
delivered to and paid for by the Underwriters pursuant to this
Agreement, the Notes will constitute valid and binding obligations of
the Trust enforceable in accordance with their terms and entitled to
the benefits of the Indenture, except that enforceability thereof may
be subject to (a) the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally and (b) general
principles of equity regardless of whether such enforceability is
considered in a proceeding at law or in equity;
(iii) the execution, delivery and performance by each of the
Company and AHFC of the Basic Documents to which it is a party will
not violate or result in a material breach of any of the terms of or
constitute a material default under or (except as contemplated in the
Basic Documents) result in the creation of any lien, charge or
encumbrance on any property or assets of the Company or AHFC, pursuant
to the terms of any indenture, mortgage, deed of trust or other
agreement described in an Officer's Certificate or Certificates and
schedules attached to such opinion (collectively, the "Material
Agreements"). As to those Material Agreements which by their terms are
or may be governed by the laws of a jurisdiction other than New York,
such counsel may assume that such Material Agreements are governed by
the laws of the State of New York for purposes of such opinion. In
addition, and in reliance upon a certificate of AHFC's Chief Financial
Officer or other accounting officer as to compliance with financial
covenants, such counsel may exclude from the scope of such opinion any
potential violation of financial covenants contained in such Material
Agreements.
(iv) no consent, approval, authorization or order of, or filing
with, any New York or federal governmental entity is required for the
execution and delivery by either of the Company or AHFC of the Basic
Documents to which it is a party or the performance by either of the
Company or AHFC of the transactions contemplated thereby where the
failure to make or obtain such consent or approval of, notice to,
filing with, or other action by, or take such action would reasonably
be expected to have a material adverse effect on the ability of such
entity to perform its obligations under the Basic Documents, except
for (i) the filing of UCC financing statements, (ii) filings and other
actions that may be required pursuant to state securities or blue sky
laws, and (iii) those that have already been obtained, made or taken;
14
(v) the execution and delivery by each of the Company and AHFC of
the Basic Documents to which it is a party, the consummation of the
transactions contemplated thereby and compliance with any of the
provisions thereof by each of AHFC and the Company will not violate
(i) any of the terms, conditions or provisions of the certificate of
incorporation or bylaws of either of AHFC or the Company, each as
amended, (ii) any federal or State of New York statute, rule or
regulation applicable to AHFC or the Company (other than federal and
state securities or blue sky laws, as to which such counsel need
express no opinion with respect to this paragraph) or (iii) any
judgment, written injunction, decree, order or ruling of any court or
governmental authority binding on AHFC or the Company of which such
counsel has knowledge;
(vi) such counsel has no reason to believe that the Registration
Statement or any amendment thereto, as of the date of the Final
Prospectus or as of such Closing Date, contained any untrue statement
of a material fact or omitted to state any material fact required to
be stated therein or necessary to make the statements therein not
misleading, or that the Preliminary Prospectus as of its date and as
of the date hereof, or the Final Prospectus as of the date hereof or
as of the Closing Date, contains or contained any untrue statement of
a material fact or omits or omitted to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; it being
understood that such counsel need make no statement or express any
opinion as to the financial statements or other financial, numerical,
statistical and quantitative information contained in the Registration
Statement or a Prospectus, and that for purposes of determining the
date of the Preliminary or Final Prospectus, it shall be the date
stated on the respective prospectus supplements thereto;
(vii) the Registration Statement and each Prospectus complies in
all material respects with the requirements of the Act and the rules
and regulations promulgated thereunder; and such counsel does not know
of any contracts or documents of a character required to be described
in the Registration Statement or each Prospectus or to be filed as
exhibits to the Registration Statement that are not described and
filed as required; it being understood that such counsel need express
no opinion as to the financial statements or other financial,
numerical, statistical and quantitative information contained in the
Registration Statement or a Prospectus;
(viii) the statements in each Prospectus under the heading
"Certain Legal Aspects of the Receivables," "Summary - ERISA
Considerations" and "ERISA Considerations," to the extent that they
constitute matters of federal or State of New York law, or federal or
State of New York legal conclusions provide a fair and accurate
summary of such law or conclusions; and
15
(ix) assuming that the Receivables are in substantially one of
the forms attached to such opinion, the Receivables constitute
tangible "chattel paper" within the meaning of the California UCC.
(f) The Representative shall have received an opinion of Xxxxxx &
Bird LLP, special counsel to the Company and AHFC, dated the Closing Date
and satisfactory in form and substance to the Representative and in form
and scope to counsel for the Underwriters, to the effect that:
(i) the Receivables Purchase Agreement creates a valid security
interest in favor of the Company in AHFC's right, title and interest
in and to the Receivables transferred to the Company pursuant to the
Receivables Purchase Agreement;
(ii) the Sale and Servicing Agreement creates a valid security
interest in favor of the Trust in the Company's right, title and
interest in and to the Receivables transferred to the Trust pursuant
to the Sale and Servicing Agreement;
(iii) the Indenture creates a valid security interest in favor of
the Indenture Trustee in the Trust's right, title and interest in and
to the Receivables pledged to the Indenture Trustee pursuant to the
Indenture;
(iv) the filing of the financing statements of Form UCC-1 naming
(a) AHFC as debtor in favor of the Company, (b) the Company as debtor
in favor of the Trust, and (c) the Trust as debtor in favor of the
Indenture Trustee, in the respective offices, will be effective to
perfect the security interests described in paragraphs (i), (ii) and
(iii) above, and each such security interest will be prior to any
security interest in the Receivables of any other creditor of AHFC,
the Company or the Trust, respectively;
(v) the Trust Agreement is not required to be qualified under the
Trust Indenture Act of 1939, as amended (the "Trust Indenture Act");
(vi) the Indenture has been duly qualified under the Trust
Indenture Act;
(vii) the Registration Statement is effective under the Act and,
to the best of such counsel's knowledge and information, no stop order
suspending the effectiveness of the Registration Statement has been
issued under the Act and no proceedings therefor have been initiated
or threatened by the Commission;
(viii) each Basic Document (other than the Trust Agreement) to
which it is a party is, when executed and delivered, a valid and
binding obligation of each
16
of the Company and AHFC, enforceable against each such party in
accordance with its terms, except as enforceability thereof may be
limited by (x) the effect of bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect relating
to creditors' rights generally, (y) general principles of equity
regardless of whether such enforceability is considered in a
proceeding at law or in equity, and (z) in the case of this Agreement
and with respect to rights of indemnity thereunder, limitations of
public policy under applicable securities laws;
(ix) assuming due authorization, execution and delivery by the
Indenture Trustee and the Owner Trustee, not in its individual
capacity but solely as Owner Trustee on behalf of the Trust, the
Indenture constitutes the legal, valid and binding agreement of the
Trust, enforceable against the Trust in accordance with its terms
(subject to applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and other similar laws affecting creditors'
rights generally from time to time in effect, and subject, as to
enforceability, to general principles of equity, regardless of whether
such enforceability is considered in a proceeding in equity or at law)
except, as applicable, that such counsel need not express an opinion
with respect to indemnification or contribution provisions which may
be deemed to be in violation of the public policy underlying any law
or regulation; and
(x) neither the Trust nor the Company is an "investment company"
or under the "control" of an "investment company" as such terms are
defined in the Investment Company Act of 1940, as amended (the
"Investment Company Act") and neither the Trust nor the Seller is
required to register under the Investment Company Act.
(g) The Representative shall have received an opinion of XxXxx
Xxxxxx LLP, tax counsel for the Company, dated the Closing Date and
satisfactory in form and scope to the Representative and counsel for the
Underwriters, to the effect that for federal income tax purposes (i) the
Notes will be characterized as indebtedness, (ii) the Trust will not be
classified as an association (or publicly traded partnership) taxable as a
corporation and (iii) the statements set forth in the Prospectus Supplement
under the headings "Summary of Terms--Tax Status", "Material Income Tax
Consequences" and Annex A to the Prospectus, "Global Clearance, Settlement
and Tax Documentation Procedures--Certain U.S. Federal Income Tax
Documentation Requirements" and in the Base Prospectus under the headings
"Summary of Terms--Tax Status" and "Material Income Tax Consequences," to
the extent they constitute matters of law or legal conclusions, accurately
described the material United States federal income tax consequences to
Noteholders.
(h) The Representative shall have received an opinion of XxXxx
Xxxxxx LLP, tax counsel for the Company, dated the Closing Date and
satisfactory in form and scope to the Representative and counsel for the
Underwriters, to the effect that for
17
California state franchise and California state income tax purposes the
Trust will not be classified as an association (or publicly traded
partnership) taxable as a corporation.
(i) The Representative shall have received from XxXxx Xxxxxx LLP,
counsel for the Underwriters, such opinion or opinions, dated the Closing
Date, with respect to the validity of the Notes, the Registration
Statement, the Prospectus and other related matters as the Representative
may require, and the Company shall have furnished to such counsel such
documents as it may request for the purpose of enabling it to pass upon
such matters.
(j) The Representative shall have received a certificate, dated
the Closing Date, of the Chairman of the Board, the President or any
Vice-President and a principal financial or accounting officer of each of
the Company and AHFC in which such officers, to the best of their knowledge
after reasonable investigation, shall state that: the representations and
warranties of the Company and AHFC in this Agreement are true and correct
in all material respects; the Company or AHFC, as applicable, has complied
with all agreements and satisfied all conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date in all
material respects; the representations and warranties of the Company or
AHFC, as applicable, in the Basic Documents are true and correct as of the
dates specified in such agreements in all material respects; the Company or
AHFC, as applicable, has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied under such agreements
at or prior to the Closing Date; no stop order suspending the effectiveness
of the Registration Statement has been issued and no proceedings for that
purpose have been instituted or are contemplated by the Commission; and,
subsequent to the date of the Final Prospectus, there has been no material
adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or otherwise),
business, properties or results of operations of the Company or AHFC or
their respective businesses except as set forth in or contemplated by the
Prospectus or as described in such certificate.
(k) The Representative shall have received an opinion of Xxxxxxx
Xxxxxxxx & Xxxx LLP, counsel to the Indenture Trustee, dated the Closing
Date and satisfactory in form and substance to the Representative and in
form and scope to counsel for the Underwriters, substantially to the effect
that:
(i) the Indenture Trustee has been legally organized under the
laws of the United States and, based upon a certificate of good
standing issued by the Comptroller of the Currency, is validly
existing as a national banking association in good standing under the
laws of the United States;
(ii) each of the Indenture Trustee and the Securities
Intermediary has full power and authority to execute, deliver and
perform its respective obligations under each of the Basic Documents
to which it is a party and has taken all necessary action to authorize
the execution, delivery and performance by it of each of the Basic
Documents to which it is a party;
18
(iii) no approval, authorization or other action by or filing
with any governmental authority of the United States of America, or of
the State of New York, having jurisdiction over the banking or trust
powers of the Indenture Trustee is required in connection with the
execution and delivery by the Indenture Trustee of the Basic
Documents;
(iv) the execution and delivery of the Basic Documents and the
performance by the Indenture Trustee of the respective terms of the
Basic Documents to which it is a party, do not conflict with or result
in a violation of the Articles of Incorporation or By-laws of the
Indenture Trustee or the federal laws of the United States of America
or laws of the State of New York applicable to the banking or trust
powers of the Indenture Trustee;
(v) each of the Basic Documents to which the Indenture Trust is a
party has been duly executed and delivered by the Indenture Trustee or
the Securities Intermediary, as the case may be, and constitutes a
legal, valid and binding obligation of the Indenture Trustee or the
Securities Intermediary, as the case may be, enforceable against the
Indenture Trustee or the Securities Intermediary, as the case may be,
in accordance with its respective terms, except that, certain of such
obligations may be enforceable solely against the Collateral and
except that such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium, liquidation, or other similar laws
affecting the enforcement of creditors' rights generally, and by
general principles of equity, including, without limitation, concepts
of materiality, reasonableness, good faith and fair dealing
(regardless of whether such enforceability is considered in a
proceeding in equity or at law); and
(vi) the Notes delivered on the Closing Date have been duly
authenticated by the Indenture Trustee in accordance with the terms of
the Indenture.
(l) The Representative shall have received an opinion of Xxxxxxx
Xxxxxxxx & Xxxx LLP, counsel to the Owner Trustee, dated the Closing Date
and satisfactory in form and substance to the Representative and in form
and scope to counsel for the Underwriters, to the effect that:
(i) the Owner Trustee is a national banking association duly
created, validly existing and in good standing under the laws of the
United States;
(ii) the Owner Trustee has all necessary power and authority to
execute, deliver and perform the Trust Agreement, to consummate the
transactions to be performed by the Owner Trustee as contemplated by
the Trust Agreement, and to enter into and to take all actions
required of it under the Trust Agreement;
19
(iii) the Trust Agreement has been duly executed and delivered by
the Owner Trustee, and is a valid and binding obligation of the Owner
Trustee. Each of the Agreements to which the Trust is a party, the
Notes and the Trust Certificate have been duly executed and delivered
on behalf of the Trust by the Owner Trustee. The Certificates have
been duly authenticated by the Owner Trustee;
(iv) to such counsel's knowledge, no authorization, consent or
other order of any State of New York or federal government authority
or agency having jurisdiction in the matter is required to be obtained
by the Owner Trustee for the valid authorization, execution and
delivery by the Owner Trustee of the Trust Agreement;
(v) neither the execution, delivery or performance by the Owner
Trustee of the Trust Agreement, nor the consummation of the
transactions contemplated thereby, nor compliance with the terms
thereof, conflict with or result in a breach of or constitute a
default under its organization certificate or By-laws, any law, rule
or regulation of the State of New York governing its banking or trust
powers or, to such counsel's knowledge, without independent
investigation, any judgment or order applicable to it or its acts,
properties or, to such counsel's knowledge without independent
investigation, any indenture, mortgage, contract or other agreement or
instrument to which the Owner Trustee in its respective capacities is
a party or by which it is bound;
(vi) To our knowledge, there is no legal action, suit, proceeding
or investigation before any court, agency or other governmental body
pending or threatened (by written communication to it of a present
intention to initiate such action, suit or proceeding) against the
Owner Trustee which, either in one instance or in the aggregate, draws
into question the validity of, seeks to prevent the consummation of
any of the transactions contemplated by or would impair materially its
ability to perform its obligations under the Trust Agreement.
(m) The Representative shall have received an opinion of
Xxxxxxxx, Xxxxxx, Xxxxxxx & Xxxxxxx LLP, special California counsel to the
Company and AHFC, or of such other California counsel satisfactory to the
Representative, dated the Closing Date and satisfactory in form and
substance to the Representative and in form and scope to counsel for the
Underwriters, to the effect that the blank forms of retail installment sale
and conditional sale contracts specified therein (the "Contracts") comply,
or complied when in use, with all applicable disclosure requirements
affecting the form and printed content of the Contracts under the Federal
Consumer Credit Protection Act, 15 U.S.C. Sections 1601 et seq. and
Regulation Z issued pursuant thereto, as interpreted in the Official Staff
Commentary, and applicable California disclosure laws affecting the form
and printed content of the Contracts.
20
(n) The Representative shall have received an opinion of
Xxxxxxxx, Xxxxxx & Xxxxxx, P.A., counsel to the Delaware Trustee, dated the
Closing Date and satisfactory in form and substance to the Representative
and counsel for the Underwriters, to the effect that:
(i) the Delaware Trustee has been duly formed and is validly
existing as a national banking association under the federal laws of
the United States;
(ii) the Delaware Trustee has the power and authority to execute,
deliver and perform its obligations under the Trust Agreement;
(iii) the Trust Agreement has been duly authorized, executed and
delivered by the Delaware Trustee and constitutes the legal, valid and
binding obligation of the Delaware Trustee, enforceable against the
Delaware Trustee in accordance with its terms (subject to applicable
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other similar laws affecting creditors' rights
generally from time to time in effect, and subject, as to
enforceability, to general principles of equity, regardless of whether
such enforceability is considered in a proceeding in equity or at
law);
(iv) neither the execution, delivery and performance by the
Delaware Trustee of the Trust Agreement, nor the consummation of any
of the transactions by the Delaware Trustee contemplated thereby, is
in violation of the articles of organization or bylaws of the Delaware
Trustee or of any law, governmental rule or regulation of the State of
Delaware or of the United States of America governing the trust powers
of the Delaware Trustee; and
(v) neither the execution, delivery and performance by the
Delaware Trustee of the Trust Agreement, nor the consummation of any
of the transactions by the Delaware Trustee contemplated thereby,
requires the consent or approval of, the withholding of objection on
the part of, the giving of notice to, the filing, registration or
qualification with, or the taking of any other action in respect of,
any governmental authority or agency under the laws of the State of
Delaware or the federal laws of the United States of America governing
the trust powers of the Delaware Trustee.
(o) The Representative shall have received one or more opinions
of Xxxxxxxx, Xxxxxx & Xxxxxx, P.A., special Delaware counsel to the Trust,
dated the Closing Date and satisfactory in form and scope to the
Representative and counsel for the Underwriters, to the effect that:
(i) the Trust has been duly formed and is validly existing and in
good standing as a statutory trust under the Delaware Statutory Trust
Statute, 12 Del. C. (section) 3801, et seq. (the "Delaware Act");
21
(ii) the Trust has the power and authority under the Delaware Act
and the Trust Agreement to execute and deliver the Basic Documents to
which the Trust is a party, to issue the Notes and the Certificates,
to grant the Collateral (as such term is defined in the Indenture) to
the Indenture Trustee as security for the Notes and to perform its
obligations under each of said documents;
(iii) the Trust has duly authorized and executed the Certificates
and the Notes, and when the Certificates have been duly executed and
authenticated by the Owner Trustee and delivered upon the order of the
Depositor in accordance with the Trust Agreement, the Certificates
will be validly issued and entitled to the benefits of the Trust
Agreement;
(iv) to the extent that Article 9 of the Uniform Commercial Code
as in effect in the State of Delaware (the "Delaware UCC") is
applicable (without regard to conflicts of laws principles), and
assuming that the security interest created by the Indenture in the
Collateral has been duly created and has attached, upon the filing of
the financing statements set forth in such opinion (the "Delaware
Financing Statements") with the Office of the Secretary of State
(Uniform Commercial Code Division) (the "Division"), the Indenture
Trustee will have a perfected security interest in the Trust's rights
in that portion of the Collateral described in the Delaware Financing
Statements that may be perfected by the filing of a UCC financing
statement with the Division (the "Filing Collateral") and the proceeds
thereof (as defined in Section 9-102(a)(64) of the Delaware UCC);
(v) the search report referenced in such opinion will set forth
the proper filing office and the proper debtor necessary to identify
those persons who under the Delaware UCC have on file financing
statements against the Trust covering the Filing Collateral as of the
Closing Date. Such search report identifies no secured party who has
filed with the Division a financing statement naming the Trust as
debtor, and describing the Filing Collateral prior to the Closing
Date;
(vi) assuming for federal income tax purposes that the Trust will
not be classified as an association or a publicly traded partnership
taxable as a corporation, and that the Notes will be characterized as
indebtedness for federal income tax purposes, then the Trust will not
be subject to any franchise or income tax under the laws of the State
of Delaware, and the Notes will also be characterized as indebtedness
for Delaware tax purposes;
(vii) the Trust Agreement is the legal, valid and binding
obligation of the parties thereto, enforceable against such parties,
in accordance with its terms (subject to such exclusions and
exceptions as are customary in opinions of this type);
22
(viii) under the Delaware Act, the Trust is a separate legal
entity and, assuming that the Sale and Servicing Agreement conveys
good title to the Trust property to the Trust as a true sale and not
as a security arrangement, the Trust rather than the
Certificateholders will hold whatever title to the Trust property as
may be conveyed to it from time to time pursuant to the Sale and
Servicing Agreement, except to the extent that the Trust has taken
action to dispose of or otherwise transfer or encumber any part of the
Trust property;
(ix) under 3805(b) of the Delaware Act, no creditor of any
Certificateholder (as defined in the Trust Agreement) shall have any
right to obtain possession of, otherwise exercise legal or equitable
remedies with respect to, the property of the Trust except in
accordance with the terms of the Trust Agreement;
(x) under 3805(c) of the Delaware Act, except to the extent
otherwise provided in the Trust Agreement, a Certificateholder
(including the Company in its capacity as Depositor under the Trust
Agreement) has no interest in specific Receivables; and
(xi) under 3808(a) and (b) of the Delaware Act, the Trust may not
be terminated or revoked by any Certificateholder, and the
dissolution, termination or bankruptcy of any Certificateholder shall
not result in the termination or dissolution of the Trust, except to
the extent otherwise provided in the Trust Agreement.
(p) The Representative shall have received an opinion of Xxxxxx &
Bird LLP, counsel to the Company, dated the Closing Date and satisfactory
in form and substance to the Representative and in form and scope to
counsel for the Underwriters, (i) with respect to the characterization of
the transfer of the Receivables by AHFC to the Company and (ii) to the
effect that should AHFC become the debtor in a case under Title 11 of the
United States Code (the "Bankruptcy Code") the Company would not otherwise
properly be a debtor in a case under the Bankruptcy Code, and in a properly
presented and decided case, a federal bankruptcy court would not use its
equitable discretion to disregard the corporate forms of the Company and
AHFC so as to substantively consolidate the assets and liabilities of the
Company with the assets and liabilities of AHFC, and such opinion shall be
in substantially the form previously discussed with the Representative and
counsel for the Underwriters and in any event satisfactory in form and in
substance to the Representative and in form and scope to counsel for the
Underwriters.
(q) The Representative shall have received evidence satisfactory
to it and its counsel that, on or before the Closing Date, UCC-1 financing
statements have been or are being filed in the office of the Secretary of
State of the state of (i) California reflecting the transfer of the
interest of AHFC in the Receivables and the proceeds thereof to the Company
and the transfer of the interest of the Company in the Receivables and
23
the proceeds thereof to the Trust and (ii) Delaware reflecting the grant of
the security interest by the Trust in the Receivables and the proceeds
thereof to the Indenture Trustee.
(r) The Representative shall have received an opinion of Xxxxxx &
Bird LLP, special counsel to the Company, dated the Closing Date and
satisfactory in form and substance to the Representative and in form and
scope to counsel for the Underwriters to the effect that upon execution and
delivery of the Sale and Servicing Agreement, the Indenture and the Control
Agreement, the provisions of the Indenture and the Control Agreement will
be effective to create a valid security interest in favor of the Indenture
Trustee, to secure payment of the Notes, in the Trust's rights in all
"security entitlements" (as defined in Section 8-102(a)(17) of the UCC)
with respect to "financial assets" (as defined in Section 8-102(a)(9) of
the UCC) now or hereafter credited to each Securities Account and in all
"security entitlements" (within the meaning of the Federal Book-Entry
Regulations) with respect to Federal Book-Entry Securities now or hereafter
credited to each Securities Account (such security entitlements,
collectively, the "Security Entitlements"); the provisions of the Indenture
and the Control Agreement will be effective to perfect the security
interest of the Indenture Trustee in the Security Entitlements; and no
security interest of any other creditor of the Trust will be prior to the
security interest of the Indenture Trustee in the Security Entitlements.
(s) Each Class of the Notes shall have been rated in the highest
rating category by each of Xxxxx'x, Fitch and Standard & Poor's.
(t) On or prior to the Closing Date, the Certificates shall have
been issued to the Company.
(u) The Representative shall have received from Xxxxxx & Bird LLP
and each other counsel for the Company, a letter dated the Closing Date to
the effect that the Underwriters may rely upon each opinion rendered by
such counsel to either Standard & Poor's, Xxxxx'x or Fitch in connection
with the rating of any Class of the Notes, as if each such opinion were
addressed to the Underwriters.
(v) The Representative shall have received an opinion of Xxxxx
Xxxx, Esq., counsel to the Company and AHFC, dated the Closing Date, to the
effect that to the best knowledge of such counsel after due inquiry, there
are no actions, proceedings or investigations to which the Company or AHFC
is a party or that are threatened before any court, administrative agency
or other tribunal having jurisdiction over AHFC or the Company, (i) that
are required to be disclosed in the Registration Statement, (ii) asserting
the invalidity of this Agreement, any Basic Document, the Notes or the
Certificates, (iii) seeking to prevent the issuance of the Notes or the
Certificates or the consummation of any of the transactions contemplated by
this Agreement or the Basic Documents, (iv) which might materially and
adversely affect the performance by the Company or AHFC of its obligations
under, or the validity or enforceability of, this Agreement, any Basic
Document, the Notes or the Certificates or (v) seeking adversely to affect
the
24
federal income tax attributes of the Notes as described in the Prospectus
under the heading "Material Income Tax Consequences."
(w) As of the Closing Date, the representations and warranties of
the Company and AHFC contained in the Basic Documents will be true and
correct.
The Company will furnish the Representative with such conformed copies
of such opinions, certificates, letters and documents as the Representative
reasonably requests.
The Representative may, in its sole discretion, waive on behalf of the
Underwriters compliance with any conditions to the obligations of the
Underwriters hereunder.
7. Indemnification and Contribution.
(a) The Company and AHFC will, jointly and severally, indemnify
and hold harmless each Underwriter against any losses, claims, damages or
liabilities, joint or several, to which such Underwriter may become
subject, under the Act, or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material
fact contained or incorporated in the Registration Statement, each
Prospectus, or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements
therein not misleading and will reimburse each Underwriter for any legal or
other expenses reasonably incurred by such Underwriter in connection with
investigating or defending any such loss, claim, damage, liability or
action as such expenses are incurred; provided, however, that neither the
Company nor AHFC will be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in conformity with
written information furnished to the Company or AHFC by any Underwriter
through the Representative specifically for use therein, it being
understood and agreed that the only such information furnished by any
Underwriter consists of the information described as such in subsection (b)
below.
(b) Each Underwriter will severally and not jointly indemnify and
hold harmless the Company and AHFC against any losses, claims, damages or
liabilities to which the Company or AHFC may become subject, under the Act
or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained or
incorporated in the Registration Statement, each Prospectus, or any
amendment or supplement thereto, or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written
information
25
furnished to the Company by such Underwriter through the Representative
specifically for use therein, and will reimburse any legal or other
expenses reasonably incurred by the Company or AHFC in connection with
investigating or defending any such loss, claim, damage, liability or
action as such expenses are incurred, it being understood and agreed that
the only such information furnished by any Underwriter consists of the
following information furnished on behalf of each Underwriter: in the Final
Prospectus, the concession and reallowance figures appearing in the third
paragraph under the caption "Underwriting" and in each Prospectus, the
information contained in the third paragraph, the second sentence of the
fifth paragraph, and the seventh paragraph under the caption "Underwriting"
(collectively, the "Underwriter Information").
(c) Promptly after receipt by an indemnified party under this
Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying
party under subsection (a) or (b) above, notify the indemnifying party of
the commencement thereof, but the omission so to notify the indemnifying
party will not relieve it from any liability which it may have to any
indemnified party otherwise than under subsection (a) or (b) above. In case
any such action is brought against any indemnified party and it notifies
the indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to
assume the defense thereof, with counsel satisfactory to such indemnified
party (who shall not, except with the consent of the indemnified party, be
counsel to the indemnifying party), and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense
thereof and after acceptance by the indemnified party of such counsel, the
indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than
reasonable costs of investigation. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of
any pending or threatened action in respect of which any indemnified party
is or could have been a party if indemnity could have been sought hereunder
by such indemnified party unless such settlement includes an unconditional
release of such indemnified party from all liability on any claims that are
the subject matter of such action.
(d) If the indemnification provided for in this Section is
unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall contribute
to the amount paid or payable by such indemnified party as a result of the
losses, claims, damages or liabilities referred to in subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Underwriters on
the other from the offering of the Notes or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company on the one hand
and the Underwriters on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities as
well as any other relevant equitable considerations. The relative benefits
received by the Company
26
on the one hand and the Underwriters on the other shall be deemed to be in
the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company bear to the total underwriting
discounts and commissions received by the Underwriters. The relative fault
shall be determined by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the
Company or the Underwriters and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue
statement or omission. The amount paid by an indemnified party as a result
of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any action or claim which is the subject of
this subsection (d). Notwithstanding the provisions of this subsection (d),
no Underwriter shall be required to contribute any amount in excess of the
amount by which the total price at which the Notes underwritten by it and
distributed to the public were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The
Underwriters' obligations in this subsection (d) to contribute are several
in proportion to their respective underwriting obligations and not joint.
(e) The obligations of the Company or AHFC under this Section
shall be in addition to any liability which the Company or AHFC may
otherwise have and shall extend, upon the same terms and conditions, to
each person, if any, who controls any Underwriter within the meaning of the
Act; and the obligations of the Underwriters under this Section shall be in
addition to any liability which the respective Underwriters may otherwise
have and shall extend, upon the same terms and conditions, to each director
of the Company or AHFC, to each officer of the Company and AHFC who has
signed the Registration Statement and to each person, if any, who controls
the Company or AHFC within the meaning of the Act.
8. Absence of Fiduciary Relationship. The Company acknowledges and
agrees that the Underwriters are acting solely in the capacity of an arm's
length contractual counterparty to the Company and AHFC with respect to the
offering of the Notes contemplated hereby (including in connection with
determining the terms of the offering) and not as a financial advisor or a
fiduciary to, or an agent of, the Company, AHFC or any other person.
Additionally, neither the Representative nor any other Underwriter is advising
the Company, AHFC or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. Each of the Company and
AHFC shall consult with its own advisors concerning such matters and shall be
responsible for making their own independent investigation and appraisal of the
transactions contemplated hereby, and the Underwriters shall have no
responsibility or liability to the Company or AHFC with respect thereto. Any
review by the Underwriters of the Company, AHFC, the transactions contemplated
hereby or other matters
27
relating to such transactions will be performed solely for the benefit of the
Underwriters and shall not be on behalf of the Company or AHFC.
9. Default of Underwriters. If any Underwriter or Underwriters default
in their obligations to purchase Notes hereunder on the Closing Date and the
aggregate principal amount of Notes that such defaulting Underwriter or
Underwriters agreed but failed to purchase does not exceed 10% of the total
principal amount of Notes that the Underwriters are obligated to purchase on
such Closing Date, the Representative may make arrangements satisfactory to the
Company for the purchase of such Notes by other persons, including any of the
Underwriters, but if no such arrangements are made by such Closing Date, the
nondefaulting Underwriters shall be obligated severally, in proportion to their
respective commitments hereunder, to purchase the Notes that such defaulting
Underwriters agreed but failed to purchase on such Closing Date. If any
Underwriter or Underwriters so default and the aggregate principal amount of
Notes with respect to which such default or defaults occur exceeds 10% of the
total principal amount of Notes that the Underwriters are obligated to purchase
on such Closing Date and arrangements satisfactory to the Representative and the
Company for the purchase of such Notes by other persons are not made within 36
hours after such default, this Agreement will terminate without liability on the
part of any non-defaulting Underwriter or the Company, except as provided in
Section 10. As used in this Agreement, the term "Underwriter" includes any
person substituted for an Underwriter under this Section. Nothing herein will
relieve a defaulting Underwriter from liability for its default.
10. Survival of Certain Representations and Obligations. The
respective indemnities, agreements, representations, warranties and other
statements of the Company or AHFC or their respective officers and of the
several Underwriters set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation, or statement as to
the results thereof, made by or on behalf of any Underwriter or the Company or
AHFC or any of their respective representatives, officers or directors or any
controlling person, and will survive delivery of and payment for the Notes. If
this Agreement is terminated pursuant to Section 9 or if for any reason the
purchase of the Notes by the Underwriters is not consummated, the Company shall
remain responsible for the expenses to be paid or reimbursed by it pursuant to
Section 5 and the respective obligations of the Company, AHFC and the
Underwriters pursuant to Section 7 shall remain in effect. If the purchase of
the Notes by the Underwriters is not consummated for any reason other than
solely because of the termination of this Agreement pursuant to Section 9 or the
occurrence of any event specified in clause (ii), (iii) or (iv) of Section 6(c),
the Company and AHFC, jointly and severally, will reimburse the Underwriters for
all out-of pocket expenses (including fees and disbursements of counsel)
reasonably incurred by them in connection with the offering of the Notes.
11. Notices. All communications hereunder will be in writing and, if
sent to the Underwriters, will be mailed, delivered or sent by facsimile and
confirmed to the Representative at 000 Xxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: ABS Syndicate & Trading (facsimile number (212)
648-5907), or, if sent to the Company, will be mailed, delivered or sent by
facsimile transmission and confirmed to it at 00000 Xxxxxxx Xxxxxx, Xxxxxxxx,
Xxxxxxxxxx 00000, Attention: Xxxx X. Xxxxxxxxx, (facsimile: (000) 000-0000), and
if to AHFC, will be mailed, delivered or sent by facsimile transmission and
confirmed to it
28
at 00000 Xxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxx 00000, Attention: Xxxx X.
Xxxxxxxxx, (facsimile: (000) 000-0000); provided that any notice to an
Underwriter pursuant to Section 7 will be mailed, delivered or telecopied and
confirmed to such Underwriter.
12. No Bankruptcy Petition. Each Underwriter agrees that, prior to the
date which is one year and one day after the payment in full of all securities
issued by the Company or by a trust for which the Company was the depositor,
which securities were rated by any nationally recognized statistical rating
organization, it will not institute against, or join any other person in
instituting against, the Company any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any Federal or
state bankruptcy or similar law.
13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 10, and no other
person will have any right or obligation hereunder.
14. Representation of Underwriters. The Representative will act for
the several Underwriters in connection with this financing, and any action under
this Agreement taken by the Representative will be binding upon all the
Underwriters.
15. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original but all such
counterparts shall together constitute one and the same Agreement.
16. Applicable Law; Submission to Jurisdiction.
(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
(b) Each of the Company and AHFC hereby submits to the
nonexclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby.
[Remainder of Page Intentionally Left Blank]
29
If the foregoing is in accordance with the Representative's
understanding of our agreement, kindly sign and return to each of the Company
and AHFC one of the counterparts hereof, whereupon it will become a binding
agreement between the Company, AHFC and the several Underwriters in accordance
with its terms.
Very truly yours,
AMERICAN HONDA
RECEIVABLES CORP.
BY:
------------------------------------
NAME:
TITLE:
AMERICAN HONDA
FINANCE CORPORATION
BY:
------------------------------------
NAME:
TITLE:
The foregoing Underwriting Agreement is hereby confirmed and accepted as of the
date first above written:
BARCLAYS CAPITAL INC., acting on behalf of itself
and as the Representative of the several Underwriters
BY:
-------------------------------------
NAME:
TITLE:
SCHEDULE A
Amount of Class Amount of Class Amount of Class Amount of Class
Underwriter A-1 Notes A-2 Notes A-3 Notes A-4 Notes
---------------------------------- --------------- --------------- --------------- ---------------
Barclays Capital Inc. $104,300,000 $110,600,000 $140,000,000 $ 86,495,500
Citigroup Global Markets Inc. $104,300,000 $110,600,000 $140,000,000 $ 86,495,500
ABN AMRO Incorporated $ 22,350,000 $ 23,700,000 $ 30,000,000 $ 18,534,750
Banc of America Securities LLC $ 22,350,000 $ 23,700,000 $ 30,000,000 $ 18,534,750
Credit Suisse Securities (USA) LLC $ 22,350,000 $ 23,700,000 $ 30,000,000 $ 18,534,750
X. X. Xxxxxx Securities Inc. $ 22,350,000 $ 23,700,000 $ 30,000,000 $ 18,534,750
---------------------------------------------------------------------
Total: $298,000,000 $316,000,000 $400,000,000 $247,130,000
=====================================================================
A-1
