EXHIBIT 99.4
SCHEDULE
TO THE
MASTER AGREEMENT
(this "Agreement")
dated as of January 24, 2002
between
CAPITAL AUTO RECEIVABLES ASSET TRUST 2002-1
(the "Trust")
and
BANK OF AMERICA, N.A.
(the "Counterparty")
Part 1. Termination Provisions
(a) "Specified Entity" means in relation to the Counterparty for the
purpose of:
Section 5(a)(v), none
Section 5(a)(vi), none
Section 5(a)(vii), none
Section 5(b), none
and in relation to the Trust for the purpose of:
Section 5(a)(v), none
Section 5(a)(vi), none
Section 5(a)(vii), none
Section 5(b), none
(b) [Reserved.]
(c) All references to "Potential Events of Default" in this Agreement
shall be deleted.
- 1 -
(d) Events of Default.
(i) The following Events of Default will not apply to the Trust and
the definition of "Event of Default" in Section 14 is deemed to be modified
accordingly:
Section 5(a)(ii), (Breach of Agreement)
Section 5(a)(iii), (Credit Support Default)
Section 5(a)(iv), (Misrepresentation)
Section 5(a)(v), (Default Under Specified Transaction)
Section 5(a)(vi), (Cross Default)
Section 5(a)(vii), (Bankruptcy)
(ii) The following Events of Default will not apply to the
Counterparty and the definition of "Event of Default" in Section 14 is
deemed to be modified accordingly:
Section 5(a)(v), (Default Under Specified Transaction)
Section 5(a)(vi) (Cross Default)
(iii) It shall be an additional Event of Default under Section 5(a),
and the Trust shall be deemed to be the Defaulting Party with respect
thereto, if (x) there occurs an Indenture "Event of Default" under Sections
5.1(a), (b), (c), (d), (e) or (f) of the Indenture and (y) after such
Indenture "Event of Default", remedies are commenced with respect to the
Collateral under Section 5.4(a)(iv) of the Indenture or any other sale or
liquidation of the Collateral occurs under Article V of the Indenture.
(iv) It shall be an additional Event of Default under Section 5(a),
and the Trust shall be deemed to be the Defaulting Party with respect
thereto, if any Trust Document is amended, modified or supplemented, with
the consent of the holders of not less than a majority of the outstanding
principal balance of the Notes and not less than a majority of the
Certificate Balance, in a manner that materially and adversely affects any
interest of the Counterparty without the prior written consent of the
Counterparty. The procedures for amending the Trust Documents are set forth
in Section 9.01 of the Trust Sale and Servicing Agreement, Article IX of
the Indenture, Section 7.01 of the Pooling and Servicing Agreement, Section
13 of the Administration Agreement, Article VIII of the Trust Agreement and
Section 8 of the Custodian Agreement.
(e) The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will not
apply to the Counterparty or the Trust.
- 2 -
(f) "Early Termination."
(i) In the event that the Counterparty fails to make, when due, any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e)
required to be made by the Counterparty, the Trust shall immediately notify
General Motors Acceptance Corporation ("GMAC") of such failure to pay or
deliver.
(ii) Notwithstanding any other provision to the contrary in this
Agreement, upon (A) the occurrence of a Designated Event (as defined in the
Triparty Contingent Assignment Agreement among the Trust, the Counterparty
and GMAC dated as of the date hereof (the "Triparty Agreement"), GMAC shall
accede to rights and obligations equivalent to those set out herein in
accordance with the terms of the Fallback Swap Agreement (as defined in the
Triparty Agreement). If such a Designated Event has occurred, then upon (A)
the effectiveness of the Fallback Swap Agreement (as defined in the
Triparty Agreement) and (B) the payment by GMAC in a timely fashion of all
Delinquent Payments (as defined in the Triparty Agreement), if any, (x) the
Event of Default or Termination Event, if any, constituting such Designated
Event shall be deemed to be cured on and as of the date of assignment and
(y) no Early Termination Date may be designated as a result of such
Designated Event. As of the Assignment Date (as defined in the Triparty
Agreement) the Counterparty shall have no further liability hereunder
(including in respect of rights, liabilities and duties accrued prior to
the Assignment Date). Furthermore, any and all collateral posted by the
Counterparty shall be returned to it within three Business Days of the
Assignment Date and the Credit Support Document of the Counterparty's
Credit Support Provider and any other form of collateral arrangement
(including letters of credit, surety bond or other guarantee) provided by
or on behalf of the Counterparty shall terminate as of the Assignment Date.
(iii) Section 6(b) is hereby amended by deleting the heading to such
section and replacing it with the following words: "Early Termination
Following Termination Event."
(iv) Section 6(b)(ii) is hereby deleted and the following shall be
inserted in its place:
"(1) If an Illegality, a Tax Event or a Tax Event Upon Merger occurs,
if the Counterparty is the Affected Party it will, and if the Trust is
the Affected Party it may request the Counterparty to (and the
Counterparty upon notice thereof will), use its best efforts (provided
that using its best efforts will not require the Counterparty to incur
any loss, excluding immaterial, incidental expenses) to transfer prior
to the 20th day following the occurrence of such event (the "Transfer
Cut-Off Date"), all of its rights and obligations under this Agreement
in respect of Affected Transactions to another of its offices or
affiliates or third party so that such Termination Event ceases to
exist.
- 3 -
If the Counterparty is not able to make such a transfer it will give
notice to the Trust to that effect prior to the Transfer Cut-Off Date.
Any such transfer under this Section 6(b)(ii) will be subject to and
conditional upon the prior written consent of the Trust, which consent
will not be withheld if the Trust's policies in effect at such time
would permit it to enter into transactions with the transferee on the
terms proposed and may not be refused if it is pursuant to the
Triparty Agreement.
(2) No transfer or substitution pursuant to this Section 6(b)(ii)
shall occur if (x) the then current ratings of the Class A-1 Notes,
Class A-2 Notes, Class X- 0 Notes or Class A-4 Notes by Moody's or S&P
would be reduced or adversely affected or (y) the position of the
Trust would otherwise materially be prejudiced under this Agreement or
any Confirmation (it being understood that it shall be the
responsibility of the Trust to verify such matters prior to the
occurrence of such transfer or substitution)"
(v) Section 6(b)(iii) shall hereby be amended by replacing the words
"within 30 days" with the words "by the Transfer Cut-Off Date (as defined
above)."
(vi) Section 6(b)(iv) is hereby deleted and the following shall be
inserted in its place:
"Early Termination.
If a Termination Event has occurred and a transfer under Section
6(b)(ii) or an agreement under Section 6(b)(iii), as the case may be,
has not been effected with respect to all Affected Transactions by the
Transfer Cut-Off Date, an Early Termination Date in respect of all
outstanding Swap Transactions will occur immediately."
(g) Payments on Early Termination.
(i) "Market Quotation" and "Second Method" will apply for purposes of
Section 6(e).
(ii) The Trust will be obligated to pay interest to the Counterparty
on any amounts due and unpaid under Section 6(e) at a rate equal to the USD
Floating Rate Option under the Confirmation.
(h) "Termination Currency" means United States Dollars.
- 4 -
Part 2. Tax Representations
(a) Payer Tax Representations. For the purpose of Section 3(e), each of the
Counterparty and the Trust makes the following representation:
It is not required by any applicable law, as modified by the practice
of any Relevant Jurisdiction, to make any deduction or withholding for
or on account of any Tax from any payment (other than interest under
Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other party
under this Agreement. In making this representation, it may rely on
(i) the accuracy of any representation made by the other party
pursuant to Section 3(f); (ii) the satisfaction of the agreement of
the other party contained in Section 4(a)(i) or 4(a)(iii) and the
accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) and (iii) the satisfaction of
the agreement of the other party contained in Section 4(d), provided
that it shall not be a breach of this representation where reliance is
placed on clause (ii) and the other party does not deliver a form or
document under Section 4(a)(iii) by reason of material prejudice to
its legal or commercial position.
(b) Payee Tax Representations.
(i) Trust Representation. For the purpose of Section 3(f) of this
Agreement, the Trust makes the following representations:
It is a business trust organized or formed under the laws of the State
of Delaware.
It is (A) a "United States person" as defined in Section 7701(a)(30)
of the Internal Revenue Code of 1986, as amended, or (B) wholly- owned
by a "United States person" and disregarded as an entity separate from
its owner for U.S. federal tax purposes.
(ii) Counterparty Representation. For the purpose of Section 3(f), the
Counterparty makes the following representations:
It is a national banking association organized under the laws of the
United States.
Part 3. Agreement to Deliver Documents
- 5 -
For the purpose of Sections 4(a)(i) and (ii), each party agrees to deliver the
following documents, as applicable:
(a) Tax forms, documents or certificates to be delivered are:
Party required to deliver
document Form/Document/Certificate Date by which to be delivered
----------------------------- ------------------------------------ -------------------------------------
Counterparty and Trust Any document required or reason Promptly upon the earlier of (i) rea
ably requested to allow the other sonable demand by the other party
party to make payments under this and (ii) learning that the form or
Agreement without any deduction or document is required.
withholding for or on account of any
Tax or with such deduction or
withholding at a reduced rate.
(b) Other documents to be delivered are:
Party required to Form/Document/ Date by which to be
deliver document Certificate delivered Covered by Section 3(d)
----------------------------- ---------------------------- ------------------------------ -----------------------
Counterparty and Trust Certificate or other docu At or promptly following Yes
ments evidencing the the execution of this
authority of the party to Agreement, and, if a
enter into this Agreement Confirmation so requires
and the persons acting on it, on or before the date set
behalf of such party. forth therein.
Counterparty and Trust A legal opinion, in the At or promptly following No
form reasonably the execution of this
acceptable to the other Agreement.
party.
Trust The Trust Sale and At or promptly following Yes
Servicing Agreement and the execution of this
all other documents to be Agreement.
executed by the Trust as
contemplated thereby.
- 6 -
Part 4. Miscellaneous
(a) Addresses for Notices. For purpose of Section 12(a):
(i) Address for notices or communications to the Trust:
Address: Bankers Trust Company
0 Xxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust Department
Facsimile No.: (000) 000-0000
Telephone No.: (000) 000-0000
with a copy to:
Address: GMAC
000 Xxxxxxxxxxx Xxxxxx
00xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Director - Securitization and Cash Management
Facsimile No.: (000) 000-0000
Telephone No.: (000) 000-0000
(ii) Address for notices or communications to the Counterparty:
Address: Bank of America, N.A.
Sears Tower
000 Xxxxx Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attention: Swap Operations
Telex No.: 49663210 Answerback: NATIONSBANK CHA
Reuters Dealing Code: NBCH
with a copy to:
Address: Bank of America, N.A.
000 X. Xxxxx Xx., XX0-000-00-00
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: Capital Markets Documentation
Telex No.: 9663210;
Answerback: NATIONSBKCHA
- 7 -
Facsimile No.: 000-000-0000
(b) Notices. Section 12(a)(iv) of this Agreement shall be deleted in its
entirety and replaced with the following:
"(iv) if sent by certified or registered mail (airmail, if
overseas) or the equivalent (return receipt requested), on the
date that mail is delivered or its delivery is attempted,
provided, however, it is understood that, if feasible, a party
shall first attempt to send notice by overnight couriers, telex
or facsimile before attempting to send notice by certified or
registered mail; or,"
(c) Process Agent. For the purpose of Section 13(c) of this Agreement:
The Counterparty appoints as its Process Agent: Not Applicable.
The Trust appoints as its Process Agent: Not Applicable.
(d) Multibranch Party. For the purpose of Section 10:
The Counterparty is not a Multibranch Party.
The Trust is not a Multibranch Party.
(e) "Calculation Agent" means, unless otherwise designated by a
Confirmation for a particular Swap Transaction, GMAC. All calculations by the
Calculation Agent shall be made in good faith and through the exercise of the
Calculation Agent's commercially reasonable judgment. All such calculations
shall be final and binding upon the Counterparty and the Trust absent manifest
error. Upon the request of the Counterparty, the Trust shall provide the
Counterparty with such information as is reasonably necessary to enable the
Counterparty to confirm the accuracy of such calculations.
(f) Credit Support Provider. Details of any Credit Support Provider:
The Counterparty: Not applicable.
The Trust: Not applicable.
(g) Credit Support Document. Details of any Credit Support Document
The Counterparty: Not applicable.
The Trust: Not applicable.
- 8 -
(h) GOVERNING LAW; JURISDICTION. THIS AGREEMENT AND EACH CONFIRMATION WILL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE.
(i) Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect
of any Proceedings relating to this Agreement.
(j) Netting of Payments. Section 2(c)(ii) will apply to any amounts payable
with respect to Swap Transactions from the date of this Agreement.
Part 5. Other Provisions
(a) ISDA Definitions: Except as otherwise defined in this Schedule or a
Confirmation, this Agreement and each Swap Transaction are subject to the 2000
ISDA Definitions (as published by the International Swaps and Derivatives
Association, Inc., the "Definitions"), and will be governed in all relevant
respects by the provisions set forth in the Definitions, without regard to any
amendments to the Definitions subsequent to the date hereof. The provisions of
the Definitions are incorporated by reference in, and shall be deemed a part of,
this Agreement and each Confirmation, as if set forth in full in this Agreement
or that Confirmation. In the event of any inconsistency between the provisions
of this Agreement and the Definitions, this Agreement will prevail. In the event
of any inconsistency between the provisions of any Confirmation and this
Agreement, such Confirmation will prevail for the purpose of the relevant Swap
Transaction.
(b) Other Swaps. The Trust agrees that it has not and will not enter into
any other swap transactions after the date hereof which provide for payments
upon termination that are senior to or pari passu with any payment due under any
Confirmation.
(c) Litigation Representation. Each instance of the words "or any of its
Affiliates" shall be deleted from Section 3(c).
(d) Gross-Up; Liability. The Counterparty agrees that the Trust will not in
any circumstance be required to pay additional amounts in respect of any
Indemnifiable Tax pursuant to Section 2(d)(i)(4) of this Agreement.
(e) Transfer. Section 7 is hereby amended by adding the following
provision: "provided however, that, the Counterparty may make such a transfer to
another of its affiliates, offices, or branches, on ten Business Days'
prior written notice to the Trust, provided that:
(i) the Counterparty delivers an opinion of independent counsel of
recognized standing, in form and substance reasonably satisfactory to
the
- 9 -
Indenture Trustee and the Servicer, confirming that as of the date of
such transfer the transferee will not, as a result of such transfer,
be required to withhold or deduct on account of Tax under this
Agreement; and
(ii) such transfer will not cause the occurrence of an Event of
Default or a Termination Event under this Agreement.
Notwithstanding the foregoing, prior written notice of transfer shall
not be required with respect to a transfer under Section 6(b)(ii).
(f) Additional Representations. Section 3 is hereby amended by adding at
the end thereof the following Subparagraph:
Eligible Contract Participant. It is an "eligible contract
participant" as that term is defined in Section 1a(12) of the
Commodity Exchange Act, as amended by the Commodity Futures
Modernization Act of 2000, and it has entered into this Agreement
and it is entering into the Transaction in connection with its
line of business (including financial intermediation services) or
the financing of its business; and the material terms of this
Agreement and the Transaction have been individually tailored and
negotiated.
(g) Amendments. Section 9(b) of this Agreement is hereby amended by adding
the following:
; provided, however, that no such amendments, modifications or
waivers shall be effective until such time as the Trust has
obtained the written affirmation of each of Standard & Poor's
Ratings Services and Xxxxx'x Investors Service, who are then
rating any securities issued by the Trust that such amendments,
modifications or waivers shall not adversely affect the
then-current ratings of the Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes or Class A-4 Notes.
(h) Confirmations. Each Confirmation supplements, forms part of, and will
be read and construed as one with this Agreement.
(i) Capitalized Terms. Each capitalized term used in this Agreement and not
defined in this Agreement, the Confirmation or the Definitions shall have the
meaning given such term in Appendix A to the Trust Sale and Servicing Agreement,
dated as of the date hereof, among GMAC,
- 10 -
as Servicer, Capital Auto Receivables, Inc., as Seller, and Capital Auto
Receivables Asset Trust 2002-1 as Issuer (as amended, modified or supplemented
from time to time in accordance with its terms). To the extent that a
capitalized term in this Agreement is defined by reference to a related
definition contained in the Trust Sale and Servicing Agreement, the Indenture,
the Pooling and Servicing Agreement, the Swap Counterparty Rights Agreement, the
Administration Agreement, the Trust Agreement and the Custodian Agreement (the
"Trust Documents"), for purposes of this Agreement only, such capitalized term
shall be deemed to be amended only if the amendment of the term in a Trust
Document relating to such capitalized term occurs with the prior written consent
of the Counterparty.
(j) No Set-Off. Without affecting the provisions of this Agreement
requiring the calculation of certain net payment amounts, all payments under
this Agreement will be made without set-off or counterclaims.
(k) Liability to Trustee. It is expressly understood and agreed by the
parties hereto that (a) this Agreement is executed and delivered by Bankers
Trust (Delaware), not individually or personally but solely as trustee of the
Trust, in the exercise of the powers and authority conferred and vested in it
under the Trust Agreement, (b) each of the representations, undertakings and
agreements herein made on the part of the Trust is made and intended not as
personal representations, undertakings and agreements by Bankers Trust
(Delaware) but is made and intended for the purpose of binding only the Trust
and (c) under no circumstances shall Bankers Trust (Delaware) be personally
liable for the payment of any indebtedness or expenses of the Trust or be liable
for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Trust under this Agreement or the other Basic
Documents. For all purposes of this Agreement, in the performance of any duties
or obligations of the Trust or the Owner Trustee hereunder, the Owner Trustee
shall be entitled to the benefits of the terms and provisions of the Trust
Agreement.
(l) Severability. In the event that any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions in the Agreement shall not in any way be affected or impaired. In the
event that any one or more of the provisions contained in this Agreement should
be held invalid, illegal or unenforceable, the parties will negotiate in good
faith to replace the invalid, illegal or unenforceable provisions with valid
provisions which will, as nearly as possible, give the originally intended legal
and economic effect of the invalid, illegal or unenforceable provisions.
(m) Recording of Conversations. Each party to this Agreement acknowledges
and agrees to the tape recording of conversations between trading and
marketing personnel of the parties to this Agreement whether by one or
other or both of the parties or their agents, and that any such tape
recordings may be submitted in evidence in any proceedings relating to
the Agreement.
- 11 -
* * * *
IN WITNESS WHEREOF, the parties have executed this Schedule by their duly
authorized officers as of the date hereof.
CAPITAL AUTO RECEIVABLES ASSET
TRUST 2002-1
By: Bankers Trust (Delaware),
not in its individual capacity but
solely as Owner Trustee on behalf of
the Trust,
By: ______________________________
Name:
Title:
BANK OF AMERICA, N.A.
By: ______________________________
Name:
Title:
- 12 -