<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 15, 1998
REGISTRATION NO. 333-47533
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
POST-EFFECTIVE AMENDMENT NO. 1
TO
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
--------------
GREEN TREE FLOORPLAN RECEIVABLES MASTER TRUST
(ISSUER WITH RESPECT TO OFFERED CERTIFICATES)
GREEN TREE FLOORPLAN FUNDING CORP.
(ORIGINATOR OF THE TRUST DESCRIBED HEREIN)
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
--------------
DELAWARE 6189 41-1823871
(STATE OR OTHER (PRIMARY STANDARD (I.R.S. EMPLOYER
JURISDICTION OF INDUSTRIAL CLASSIFICATION IDENTIFICATION NO.)
INCORPORATION OR CODE NUMBER)
ORGANIZATION)
500 LANDMARK TOWERS
345 ST. PETER STREET, SAINT PAUL, MINNESOTA 55102-1639
(612) 293-3400
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
--------------
JOEL H. GOTTESMAN, ESQ.
1100 LANDMARK TOWERS
345 ST. PETER STREET, SAINT PAUL, MINNESOTA 55102-1639
(612) 293-3400
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
--------------
COPIES TO:
CHARLES F. SAWYER RENWICK D. MARTIN
DORSEY & WHITNEY LLP BROWN & WOOD LLP
220 SOUTH SIXTH STREET ONE WORLD TRADE CENTER
MINNEAPOLIS, MINNESOTA 55402 NEW YORK, NEW YORK 10048
(612) 343-7986 (212) 839-5300
--------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE OF SECURITIES TO THE
PUBLIC: As soon as practicable after the effective date of this Registration
Statement.
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. [_]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [X] Registration No. 333-475333
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [_]
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- - -------------------------------------------------------------------------------
<PAGE>
PART II.
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
<TABLE>
<S> <C>
SEC registration fee........................................... $124,158.13
Blue Sky fees and expenses..................................... 10,000.00*
Accountant's fees and expenses................................. 30,000.00*
Attorney's fees and expenses................................... 75,000.00*
Trustee's fees and expenses.................................... 15,000.00*
Printing and engraving expenses................................ 150,000.00*
Rating Agency fees............................................. 150,000.00*
Miscellaneous.................................................. 5,481.87*
-----------
Total........................................................ $560,000.00*
===========
</TABLE>
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* Estimated
ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Exhibits:
<TABLE>
<C> <S>
***1.1 Proposed form of Underwriting Agreement
****3.1 Certificate of Incorporation of Green Tree Floorplan Funding Corp.
****3.2 Bylaws of Green Tree Floorplan Funding Corp.
*****4.1 Pooling and Servicing Agreement dated December 1, 1995
*4.2 Form of Series 1998-1 Supplement to the Pooling and Servicing
Agreement dated as of March 1, 1998
*****4.3 Receivables Purchase Agreement dated December 1, 1995
*4.4 Amendment No. 1 to the Pooling and Servicing Agreement dated as of
March 11, 1998
***5.1 Opinion and consent of Dorsey & Whitney LLP as to legality
***8.1 Opinion and consent of Dorsey & Whitney LLP as to tax matters
***23.1 Consent of Dorsey & Whitney LLP (included as part of Exhibit 5.1)
***23.2 Consent of Dorsey & Whitney LLP (included as part of Exhibit 8.1)
**24.1 Power of attorney from officers and directors of the Registrants
(Included at II-2)
</TABLE>
- - --------
*Filed herewith.
**Previously filed in the Company's Registration Statement on Form S-1 on
March 6, 1998, Registration No. 333-47533.
***Previously filed in Amendment No. 1 to the Company's Registration Statement
on Form S-1 on April 1, 1998, Registration No. 333-47533.
****Incorporated by reference to the corresponding exhibit numbers in
Amendment No. 1 to the Company's Registration Statement on Form S-1 filed
November 8, 1995, Registration No. 33-62433.
*****Incorporated by reference to the corresponding exhibit in the Company's
Registration Statement on Form S-1 filed October 31, 1996, Registration No.
333-15285.
(b) Financial Statements:
Not Applicable
II-1
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT
CERTIFIES THAT IT HAS REASONABLE GROUNDS TO BELIEVE THAT IT MEETS ALL OF THE
REQUIREMENTS FOR FILING ON FORM S-1 AND HAS DULY CAUSED THIS POST-EFFECTIVE
AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED, IN THE CITY OF SAINT PAUL, STATE OF
MINNESOTA, ON THE 15TH DAY OF APRIL, 1998.
Green Tree Floorplan Funding Corp.
/s/ Phyllis A. Knight
By ___________________________________
PHYLLIS A. KNIGHT
Senior Vice President and
Treasurer
POWER OF ATTORNEY
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT, THIS POST-EFFECTIVE
AMENDMENT NO. 1 TO THE REGISTRATION STATEMENT HAS BEEN SIGNED BY THE FOLLOWING
PERSONS IN THE CAPACITIES AND ON THE DATE INDICATED.
SIGNATURE TITLE DATE
Chairman of the
* Board and
- - ------------------------------------- President
LAWRENCE M. COSS (Principal
Executive Officer
and Director)
Senior Vice
/s/ Phyllis A. Knight President and April 15, 1998
- - ------------------------------------- Treasurer
PHYLLIS A. KNIGHT (Principal
Financial Officer
and Principal
Accounting Officer)
Senior Vice
/s/ Joel H. Gottesman President and April 15, 1998
- - ------------------------------------- Director
JOEL H. GOTTESMAN
Assistant Secretary
* and Director
- - -------------------------------------
RICHARD G. EVANS
* Director
- - -------------------------------------
PAUL A. BOYUM
* Director
- - -------------------------------------
GARY P. MILLS
* By /s/ Joel H. Gottesman April 15, 1998
- - -------------------------------------
JOEL H. GOTTESMAN
Attorney-in-fact
II-2
<PAGE>
INDEX TO EXHIBITS
PAGE
<TABLE>
<C> <S>
***1.1 Proposed form of Underwriting Agreement
****3.1 Certificate of Incorporation of Green Tree Floorplan Funding Corp.
****3.2 Bylaws of Green Tree Floorplan Funding Corp.
*****4.1 Pooling and Servicing Agreement dated December 1, 1995
*4.2 Form of Series 1998-1 Supplement to the Pooling and Servicing
Agreement dated as of March 1, 1998
*****4.3 Receivables Purchase Agreement dated December 1, 1995
*4.4 Amendment No. 1 to the Pooling and Servicing Agreement dated as of
March 11, 1998
***5.1 Opinion and consent of Dorsey & Whitney LLP as to legality
***8.1 Opinion and consent of Dorsey & Whitney LLP as to tax matters
***23.1 Consent of Dorsey & Whitney LLP (included as part of Exhibit 5.1)
***23.2 Consent of Dorsey & Whitney LLP (included as part of Exhibit 8.1)
**24.1 Power of attorney from officers and directors of the Registrants
(Included at II-2)
</TABLE>
- - --------
*Filed herewith.
**Previously filed in the Company's Registration Statement on Form S-1 on
March 6, 1998, Registration No. 333-47533.
***Previously filed in Amendment No. 1 to the Company's Registration Statement
on Form S-1 on April 1, 1998, Registration No. 333-47533.
****Incorporated by reference to the corresponding exhibit numbers in
Amendment No. 1 to the Company's Registration Statement on Form S-1 filed
November 8, 1995, Registration No. 33-62433.
*****Incorporated by reference to the corresponding exhibit in the Company's
Registration Statement on Form S-1 filed October 31, 1996, Registration
No. 333-15285.
<PAGE>
- - --------------------------------------------------------------------------------
GREEN TREE FLOORPLAN FUNDING CORP.
Transferor
GREEN TREE FINANCIAL CORPORATION
Servicer
and
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION
Trustee
on behalf of the Series 1998-1 Certificateholders
---------------
SERIES 1998-1 SUPPLEMENT
Dated as of March 1, 1998
to
POOLING AND SERVICING AGREEMENT
Dated as of December 1, 1995
---------------
GREEN TREE FLOORPLAN RECEIVABLES MASTER TRUST
$400,400,000 Floating Rate Floorplan Receivable Trust
Certificates, Series 1998-1, Class A
$20,475,000 Floating Rate Floorplan Receivable Trust
Certificates, Series 1998-1, Class B
$19,337,000 Floating Rate Floorplan Receivable Trust
Certificates, Series 1998-1, Class C
$14,788,000 Floating Rate Floorplan Receivable Trust
Certificates, Series 1998-1, Class D
- - --------------------------------------------------------------------------------
<PAGE>
TABLE OF CONTENTS
PAGE
SECTION 1. Designation..................................................... 1
SECTION 2. Definitions..................................................... 1
SECTION 3. Optional Repurchase............................................. 19
SECTION 4. Delivery and Payment for the Series 1998-1 Certificates......... 19
SECTION 5. Form of Delivery of Series 1998-1 Certificates.................. 20
SECTION 6. Article IV of Agreement......................................... 20
ARTICLE IV
RIGHTS OF CERTIFICATEHOLDERS AND
ALLOCATION AND APPLICATION OF COLLECTIONS
Section 4.4 Rights of Certificateholders.............................. 20
Section 4.5 Collections and Allocation; Payments on
Exchangeable Transferor Certificate....................... 21
Section 4.6 Determination of Monthly Interest for the Series
1998-1 Certificates....................................... 22
Section 4.7 Determination of Principal Amounts........................ 24
Section 4.8 Shared Principal Collections.............................. 26
Section 4.9 Application of Funds on Deposit in the Collection
Account for the Certificates.............................. 27
Section 4.10 Coverage of Required Amount for the Series 1998-1
Certificates.............................................. 34
Section 4.11 Payment of Certificate Interest........................... 35
Section 4.12 Payment of Certificate Principal.......................... 35
Section 4.13 Investor Charge-Off....................................... 36
Section 4.14 Reallocated Principal Collections for the Series
1998-1 Certificates....................................... 37
Section 4.15 Determination of LIBOR.................................... 38
Section 4.16 Determination of Accumulation Period Length............... 39
Section 4.17 Pre-Funding Account....................................... 39
Section 4.18 Increases in Invested Amount.............................. 40
- i -
<PAGE>
SECTION 7. Article V of the Agreement....................................... 41
ARTICLE V
DISTRIBUTIONS AND REPORTS TO INVESTOR CERTIFICATEHOLDERS
Section 5.1 Distributions.............................................. 41
Section 5.2 Certificateholders' Statement.............................. 43
SECTION 8. Series 1998-1 Pay Out Events.................................... 44
SECTION 9. Series 1998-1 Termination....................................... 45
SECTION 10. Legends; Transfer and Exchange; Restrictions on Transfer
of Series 1998-1 Certificates; Tax Treatment.................... 46
SECTION 11. Additional Restrictions on Transfers of Class C Certificates;
Withholding Requirements; Tax Treatment......................... 49
SECTION 12. Ratification of Agreement....................................... 53
SECTION 13. Counterparts.................................................... 53
SECTION 14. Governing Law................................................... 53
SECTION 15. Instructions in Writing......................................... 53
EXHIBITS
EXHIBIT A Form of Class A Investor Certificate
EXHIBIT B Form of Class B Investor Certificate
EXHIBIT C Form of Class C Investor Certificate
EXHIBIT D Form of Class D Investor Certificate
EXHIBIT E Form of Monthly Certificateholder's Statement
EXHIBIT F Form of Representation Letter and Certification
- ii -
<PAGE>
SERIES 1998-1 SUPPLEMENT, dated as of March 1, 1998 (the "Series
Supplement") by and among GREEN TREE FLOORPLAN FUNDING CORP., a corporation
organized and existing under the laws of the State of Delaware, as Transferor
(the "Transferor"), GREEN TREE FINANCIAL CORPORATION, a corporation organized
and existing under the laws of Delaware, as Servicer (the "Servicer"), and
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, a national banking association, as
trustee (together with its successors in trust thereunder as provided in the
Agreement referred to below, the "Trustee"), under the Pooling and Servicing
Agreement dated as of December1, 1995 (as supplemented, the "Agreement") among
the Transferor, the Servicer and the Trustee.
Section 6.9 of the Agreement provides, among other things, that the
Transferor and the Trustee may at any time and from time to time enter into a
supplement to the Agreement for the purpose of authorizing the issuance by the
Trustee to the Transferor, for execution and redelivery to the Trustee for
authentication, of one or more Series of Certificates.
Pursuant to this Series Supplement, the Transferor and the Trustee
shall create a new Series of Investor Certificates and shall specify the
Principal Terms thereof.
SECTION 1. DESIGNATION. There is hereby created a Series of Investor
Certificates to be issued pursuant to the Agreement and this Series Supplement
to be known generally as the "Series 1998-1 Certificates." The Series 1998-1
Certificates shall be issued in four Classes, which shall be designated
generally as the Floating Rate Floorplan Receivable Trust Certificates, Series
1998-1, Class A (the "Class A Certificates"), the Floating Rate Floorplan
Receivable Trust Certificates, Series1998-1, Class B (the "Class B
Certificates"), the Floating Rate Floorplan Receivable Trust Certificates,
Series 1998-1, Class C (the "Class C Certificates") and the Floating Rate
Floorplan Receivable Trust Certificates, Series 1998-1, Class D (the "Class D
Certificates").
SECTION 2. DEFINITIONS. In the event that any term or provision
contained herein shall conflict with or be inconsistent with any provision
contained in the Agreement, the terms and provisions of this Series Supplement
shall govern with respect to the Series 1998-1 Certificates. All Article,
Section or subsection references herein shall mean Article, Section or
subsections of the Agreement, as amended or supplemented by this Series
Supplement, except as otherwise provided herein. All capitalized terms not
otherwise defined herein are defined in the Agreement. Each capitalized term
defined herein shall relate only to the Series 1998-1 Certificates and no other
Series of Certificates issued by the Trust.
"ABC FIXED/FLOATING ALLOCATION PERCENTAGE" means, for any Business Day,
the percentage equivalent of a fraction, the numerator of which is the sum of
the Class A Invested Amount, the Class B Invested Amount and the Class C
Invested
<PAGE>
Amount at the end of the last day of the Revolving Period and the denominator of
which is the greater of (a)the sum of the aggregate amount of the Pool Balance
and the amount on deposit in the Excess Funding Account at the end of the
preceding Business Day and (b)the sum of the numerators used to calculate the
allocation percentages with respect to Principal Collections for all Series.
"ABC INVESTOR DEFAULT AMOUNT" means, for any Business Day, an amount
equal to the product of (a)the sum of the Class A Floating Allocation
Percentage, the Class B Floating Allocation Percentage and the Class C Floating
Allocation Percentage applicable on such Business Day and (b)the aggregate
principal amount (exclusive of the portion thereof allocable to the Discount
Factor, if any) of Defaulted Receivables identified since the prior reporting
date.
"ACCUMULATION PERIOD COMMENCEMENT DATE" means the first day of the
November 2000 Monthly Period if the Accumulation Period Length is four months,
the first day of the December 2000 Monthly Period if the Accumulation Period
Length is three months, the first day of the January 2001 Monthly Period if the
Accumulation Period Length is two months, and the first day of the February 2001
Monthly Period if the Accumulation Period Length is one month; provided,
however, if the Accumulation Period Length has been determined to be less than
four months and, after such determination, any outstanding Series enters into an
early amortization period, the Accumulation Period Commencement Date shall be
the earlier of (x)the date on which such other outstanding Series entered its
early amortization period and (y)the Accumulation Period Commencement Date as
previously determined.
"ACCUMULATION PERIOD LENGTH" means the one, two, three or four month(s)
period determined on October 13, 2000, and shall be calculated as the product,
rounded upwards to the nearest integer, of (a)four and (b)a fraction, the
numerator of which is the Invested Amount as of October 13, 2000 (after giving
effect to all changes therein on such date) and the denominator of which is the
sum of such Invested Amount and the invested amounts as of October 13, 2000
(after giving effect to all changes therein on such date) of all other
outstanding Series whose respective revolving periods are not scheduled to end
before the last day of the February 2001 Monthly Period.
"ACCUMULATION SHORTFALL" means, for the succeeding Monthly Period, the
amount by which the Controlled Deposit Amount exceeds the amount deposited in
the Principal Account for any Monthly Period.
"ADDITIONAL CLASS D INVESTED AMOUNT" means any increase in the Class D
Invested Amount agreed to in connection with an increase by the Transferor in
any of the percentages used to calculate the Overconcentration Amounts.
"ADDITIONAL INTEREST" means, at any time of determination, the sum of
Class A Additional Interest and Class B Additional Interest.
-2-
<PAGE>
"BASE RATE" means the sum of (i)the weighted average of the Class A
Certificate Rate, the Class B Certificate Rate, the Class C Certificate Rate and
the Class D Certificate Rate, PLUS (ii)2% per annum.
"CARRYOVER CLASS A INTEREST" means (a)any Class A Monthly Interest due
but not paid on any previous Distribution Date PLUS (b)any Class A Additional
Interest.
"CARRYOVER CLASS B INTEREST" means (a)any Class B Monthly Interest due
but not paid on any previous Distribution Date PLUS (b)any Class B Additional
Interest.
"CARRYOVER CLASS C INTEREST" means (a)any Class C Monthly Interest due
but not paid on any previous Distribution Date PLUS (b)any Class C Additional
Interest.
"CASH EQUIVALENTS" mean, unless otherwise provided in this Series
Supplement, (a) negotiable instruments or securities represented by instruments
in bearer or registered form which evidence (i) obligations of or fully
guaranteed by the United States of America; (ii) time deposits, promissory
notes, or certificates of deposit of any depositary institution or trust
company; provided, however, that at the time of the Trust's investment or
contractual commitment to invest therein, the certificates of deposit or
short-term deposits of such depositary institution or trust company shall have a
credit rating from Standard & Poor's of A-1+, from Moody's of P-1 and from Fitch
of F-1+ if rated by Fitch; (iii) commercial paper having, at the time of the
Trust's investment or contractual commitment to invest therein, a rating from
Standard & Poor's of A-1+, from Moody's of P-1 and from Fitch of F-1+ if rated
by Fitch; (iv) banker's acceptances issued by any depositary institution or
trust company described in clause (a)(ii) above; and (v) investments in money
market funds rated AAA-m or AAA-mg by Standard & Poor's, Aaa by Moody's and AAA
by Fitch if rated by Fitch or otherwise approved in writing by Moody's, Standard
& Poor's and Fitch; (b) time deposits and demand deposits in the name of the
Trust or the Trustee in any depositary institution or trust company referred to
in clause (a)(ii) above; (c) securities not represented by an instrument that
are registered in the name of the Trustee or its nominee (which may not be Green
Tree or an Affiliate) upon books maintained for that purpose by or on behalf of
the issuer thereof and identified on books maintained for that purpose by the
Trustee as held for the benefit of the Trust or the Certificateholders, and
consisting of (x) shares of an open end diversified investment company which is
registered under the Investment Company Act which (i) invests its assets
exclusively in obligations of or guaranteed by the United States of America or
any instrumentality or agency thereof having in each instance a final maturity
date of less than one year from their date of purchase or other Cash
Equivalents, (ii) guarantees to maintain a constant net asset value per share,
(iii) has aggregate net assets of not less than $100,000,000 on the date of
purchase of such shares and (iv) which each Rating Agency designates in writing
will not result in a withdrawal or downgrading of its then current rating of any
Series rated by it or (y) Eurodollar time deposits of a depository institution
or trust company that are rated A-1+ by Standard & Poor's, P-1 by Moody's and
F-1+ by Fitch if rated by Fitch; provided, however, that at the time of the
Trust's investment or
-3-
<PAGE>
contractual commitment to invest therein, the Eurodollar deposits of such
depositary institution or trust company shall have a credit rating from Standard
& Poor's of A-1+, from Moody's of P-1 and from Fitch of F-1+ if rated by Fitch;
and (d) any other investment if each Rating Agency confirms in writing that such
investment will not adversely affect its then current rating of the Investor
Certificates.
"CLASS A ADDITIONAL INTEREST" shall have the meaning specified in
subsection4.6(a).
"CLASS A CERTIFICATE RATE" means, with respect to any Interest Accrual
Period, the lesser of (i)the applicable LIBOR plus .05% per annum or (ii)the
applicable Net Receivables Rate.
"CLASS A CERTIFICATEHOLDER" means the Person in whose name a Class A
Certificate is registered in the Certificate Register.
"CLASS A CERTIFICATEHOLDERS' INTEREST" means the portion of the Series
1998-1 Certificateholder's Interest evidenced by the Class A Certificates.
"CLASS A CERTIFICATES" means any of the certificates executed by the
Transferor and authenticated by or on behalf of the Trustee, substantially in
the form of ExhibitA hereto.
"CLASS A FIXED/FLOATING ALLOCATION PERCENTAGE" means, with respect to
any Business Day, the percentage equivalent of a fraction, the numerator of
which is the Class A Invested Amount at the end of the last day of the Revolving
Period and the denominator of which is the greater of (a)the sum of the Pool
Balance and the amount on deposit in the Excess Funding Account at the end of
the preceding Business Day and (b)the sum of the numerators used to calculate
the allocation percentages with respect to Principal Collections for all Series.
"CLASS A FLOATING ALLOCATION PERCENTAGE" means, with respect to any
Business Day, the percentage equivalent of a fraction, the numerator of which is
the Class A Invested Amount as of the end of the preceding Business Day and the
denominator of which is the greater of (a)the sum ofthe Pool Balance and the
amount on deposit in the Excess Funding Account as of the end of the preceding
Business Day and (b)the sum of the numerators used to calculate the allocation
percentages with respect to Principal Collections for all Series.
"CLASS A INITIAL INVESTED AMOUNT" means the aggregate initial principal
amount of the Class A Certificates, which is $400,400,000.
"CLASS A INTEREST SHORTFALL" shall have the meaning specified in
subsection 4.6(a).
-4-
<PAGE>
"CLASS A INVESTED AMOUNT" means an amount equal to (a)the initial
principal balance of the Class A Certificates less the Class A Percentage of the
initial deposit to the Pre-Funding Account plus the Class A Percentage of any
withdrawals from the Pre-Funding Account pursuant to Section 4.18 in connection
with (i)during the Funding Period, the addition of Receivables to the Trust or
(ii)at the end of the Funding Period, for deposit into the Excess Funding
Account, minus (b)the aggregate amount of principal payments (except principal
payments made from the Pre-Funding Account) made to Class A Certificateholders
prior to such date, minus (c)the aggregate amount of Class A Investor
Charge-Offs for all prior Determination Dates, and plus (d)the aggregate amount
allocated and available on all prior Business Days pursuant to subsection
4.9(a)(vi) (including amounts applied pursuant to such subsection but funded
pursuant to Section 4.10(a) and (b) and Section 4.14(a), (b) and (c)) for the
purpose of reimbursing amounts deducted pursuant to the foregoing clause (c).
"CLASS A INVESTOR CHARGE-OFF" shall have the meaning specified in
subsection4.13(d).
"CLASS A MONTHLY INTEREST" means the interest distributable in respect
of the Class A Certificates as calculated in accordance with subsection 4.6(a).
"CLASS A PERCENTAGE" means the percentage derived from the fraction the
numerator of which is the Class A Initial Invested Amount and the denominator of
which is the sum of the Class A Initial Invested Amount, the Class B Initial
Invested Amount and the Class C Initial Invested Amount.
"CLASS A PRE-FUNDED AMOUNT" means the product of the Pre-Funded Amount
and the Class A Percentage.
"CLASS A PRINCIPAL" means the principal distributable in respect of the
Class A Certificates as calculated in accordance with subsection 4.7(a).
"CLASS A REQUIRED AMOUNT" means the amount determined by the Servicer
on each Business Day in a Monthly Period equal to the excess, if any, of (x)the
sum of (i)Class A Monthly Interest for the prior Monthly Period, (ii)any Class A
Monthly Interest due but not paid on any previous Distribution Date plus any
Class A Additional Interest previously due but not paid to the Class A
Certificateholders on a prior Distribution Date, (iii)if Green Tree or an
Affiliate of Green Tree is no longer the Servicer, the Class A Floating
Allocation Percentage of the Servicing Fee for the prior Monthly Period and
(iv)the Class A Floating Allocation Percentage of the Investor Default Amount,
to the extent not previously paid, for any Business Day in the prior Monthly
Period over (y)the Series Available Interest Collections plus any Excess
Interest Collections from other Series allocated with respect to the amounts
described in clauses (x)(i) through (iv).
-5-
<PAGE>
"CLASS A SCHEDULED PAYMENT DATE" means the Distribution Date in March
2001.
"CLASS B ADDITIONAL INTEREST" shall have the meaning specified in
subsection 4.6(b).
"CLASS B CERTIFICATE RATE" means, with respect to any Interest Accrual
Period, the lesser of (i)the applicable LIBOR plus .27% per annum or (ii)the
applicable Net Receivables Rate.
"CLASS B CERTIFICATEHOLDER" means the Person in whose name a Class B
Certificate is registered in the Certificate Register.
"CLASS B CERTIFICATEHOLDERS' INTEREST" means the portion of the Series
1998-1 Certificateholders' Interest evidenced by the Class B Certificates.
"CLASS B CERTIFICATES" means any of the certificates executed by the
Transferor and authenticated by or on behalf of the Trustee, substantially in
the form of ExhibitB hereto.
"CLASS B DAILY PRINCIPAL AMOUNT" shall have the meaning specified in
subsection 4.9(c)(ii).
"CLASS B FIXED/FLOATING ALLOCATION PERCENTAGE" means, with respect to
any Business Day, the percentage equivalent of a fraction, the numerator of
which is the Class B Invested Amount at the end of the last day of the Revolving
Period and the denominator of which is the greater of (a)the sum of the Pool
Balance and the amount on deposit in the Excess Funding Account at the end of
the preceding Business Day and (b)the sum of the numerators used to calculate
the allocation percentages with respect to Principal Collections for all Series.
"CLASS B FLOATING ALLOCATION PERCENTAGE" means, with respect to any
Business Day, the percentage equivalent of a fraction, the numerator of which is
the Class B Invested Amount as of the end of the preceding Business Day and the
denominator of which is the greater of (a)the sum of the Pool Balance and the
amount on deposit in the Excess Funding Account as of the end of the preceding
Business Day and (b)the sum of the numerators used to calculate the allocation
percentages with respect to Principal Collections for all Series.
"CLASS B INITIAL INVESTED AMOUNT" means the aggregate initial principal
amount of the Class B Certificates, which is $20,475,000.
"CLASS B INTEREST SHORTFALL" shall have the meaning specified in
subsection 4.6(b).
-6-
<PAGE>
"CLASS B INVESTED AMOUNT" for any date means an amount equal to (a)the
initial principal balance of the Class B Certificates less the Class B
Percentage of the initial deposit to the Pre-Funding Account plus the Class B
Percentage of any withdrawals from the Pre-Funding Account pursuant to Section
4.18 in connection with (i)during the Funding Period, the addition of
Receivables to the Trust or (ii)at the end of the Funding Period, for deposit
into the Excess Funding Account minus (b)the aggregate amount of principal
payments (except principal payments made from the Pre-Funding Account) made to
Class B Certificateholders prior to such date, minus (c)the aggregate amount of
the Class B Investor Charge-Offs for all prior Determination Dates equal to the
amount by which the Class B Invested Amount has been reduced to fund the
Investor Default Amounts on all prior Determination Dates pursuant to Section
4.13(c), minus (d)the aggregate amount of Reallocated Class B Principal
Collections for which neither the Class D Invested Amount nor the Class C
Invested Amount has been reduced for all prior Distribution Dates, and plus
(e)the aggregate amount allocated and available on all prior Business Days
pursuant to subsection 4.9(a)(viii) (including amounts applied pursuant to such
subsection but funded pursuant to Section 4.10(a) and (b) and Section 4.14(a)
and (b)) for the purpose of reimbursing amounts deducted pursuant to the
foregoing clauses (c) and (d).
"CLASS B INVESTOR CHARGE-OFF" shall have the meaning specified in
subsection4.13(c).
"CLASS B MONTHLY INTEREST" means the interest distributable in respect
of the Class B Certificates as calculated in accordance with subsection 4.6(b).
"CLASS B PERCENTAGE" means the percentage derived from the fraction the
numerator of which is the Class B Initial Invested Amount and the denominator of
which is the sum of the Class A Initial Invested Amount, the Class B Initial
Invested Amount and the Class C Initial Invested Amount.
"CLASS B PRE-FUNDED AMOUNT" means the product of the Pre-Funded Amount
and the Class B Percentage.
"CLASS B PRINCIPAL" means the principal distributable in respect of the
Class B Certificates as calculated in accordance with subsection 4.7(b).
"CLASS B PRINCIPAL COMMENCEMENT DATE" means the earliest of (a)the
Class B Scheduled Payment Date, (b)the Distribution Date during the Early
Amortization Period on which the Class A Invested Amount is paid in full or, if
there are no Principal Collections allocable to the Series 1998-1 Investor
Certificates remaining after payments have been made to the Class A Certificates
on such Distribution Date, the Distribution Date following the Distribution Date
on which the Class A Invested Amount is paid in full and (c)the Distribution
Date following a sale or repurchase of the Receivables as set forth in Sections
2.4(d), 9.2, 10.2, 12.1 or 12.2 of the Agreement and Section 3 of this Series
Supplement.
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"CLASS B REQUIRED AMOUNT" means the amount determined by the Servicer
on each Business Day in a Monthly Period equal to the excess, if any, of (x)the
sum of (i)Class B Monthly Interest for the prior Monthly Period, (ii)any Class B
Monthly Interest due but not paid on any previous Distribution Date plus any
Class B Additional Interest previously due but not paid to the Class B
Certificateholders on a prior Distribution Date, (iii)if Green Tree or an
Affiliate of Green Tree is no longer the Servicer, the Class B Floating
Allocation Percentage of the Servicing Fee for the prior Monthly Period and
(iv)the Class B Floating Allocation Percentage of the Investor Default Amount,
to the extent not previously paid, for any Business Day in the prior Monthly
Period over (y)the Series Available Interest Collections plus any Excess
Interest Collections from other Series allocated with respect to the amounts
described in clauses (x)(i) through (iv).
"CLASS B SCHEDULED PAYMENT DATE" means the Distribution Date in April
2001.
"CLASS C ADDITIONAL INTEREST" shall have the meaning specified in
subsection 4.6(c).
"CLASS C CERTIFICATE RATE" means, with respect to any Interest Accrual
Period, the lesser of (i) the applicable LIBOR plus .70% per annum or (ii) the
applicable Net Receivables Rate.
"CLASS C CERTIFICATEHOLDER" means the Person in whose name a Class C
Certificate is registered in the Certificate Register.
"CLASS C CERTIFICATEHOLDERS' INTEREST" means the portion of the Series
1998-1 Certificateholders' Interest evidenced by the Class C Certificates.
"CLASS C CERTIFICATES" means any of the certificates executed by the
Transferor and authenticated by or on behalf of the Trustee, substantially in
the form of Exhibit C hereto.
"CLASS C DAILY PRINCIPAL AMOUNT" shall have the meaning specified in
subsection 4.9(c)(iii).
"CLASS C FIXED/FLOATING ALLOCATION PERCENTAGE" means, with respect to
any Business Day, the percentage equivalent of a fraction, the numerator of
which is the Class C Invested Amount at the end of the last day of the Revolving
Period and the denominator of which is the greater of (a)the sum of the Pool
Balance and the amount on deposit in the Excess Funding Account at the end of
the preceding Business Day and (b)the sum of the numerators used to calculate
the allocation percentages with respect to Principal Collections for all Series.
"CLASS C FLOATING ALLOCATION PERCENTAGE" means, with respect to any
Business Day, the percentage equivalent of a fraction, the numerator of which is
the Class C Invested Amount as of the end of the preceding Business Day and the
denominator
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of which is the greater of (a) the sum of the Pool Balance and the amount on
deposit in the Excess Funding Account as of the end of the preceding Business
Day and (b) the sum of the numerators used to calculate the allocation
percentages with respect to Principal Collections for all Series.
"CLASS C INITIAL INVESTED AMOUNT" means the aggregate initial principal
amount of the Class C Certificates, which is $19,337,000.
"CLASS C INTEREST SHORTFALL" shall have the meaning specified in
subsection4.6(c).
"CLASS C INVESTED AMOUNT" for any date means an amount equal to (a)the
initial principal balance of the Class C Certificates less the Class C
Percentage of the initial deposit to the Pre-Funding Account plus the Class C
Percentage of any withdrawals from the Pre-Funding Account pursuant to Section
4.18 in connection with (i)during the Funding Period, the addition of
Receivables to the Trust or (ii)at the end of the Funding Period, for deposit
into the Excess Funding Account, minus (b)the aggregate amount of principal
payments (except principal payments made from the Pre-Funding Account) made to
Class C Certificateholders prior to such date, minus (c)the aggregate amount of
the Class C Investor Charge-Offs for all prior Distribution Dates equal to the
amount by which the Class C Invested Amount has been reduced to fund the
Investor Default Amounts on all prior Distribution Dates pursuant to Section
4.13(b), minus (d)the aggregate amount of Reallocated Class B Principal
Collections and Reallocated Class C Principal Collections for which the Class D
Invested Amount has not been reduced for all prior Distribution Dates (provided
that the Class C Invested Amount may not be reduced below zero), and plus (e)the
aggregate amount allocated and available on all prior Business Days pursuant to
subsection 4.9(a)(ix) (including amounts applied pursuant to such subsection but
funded pursuant to Section 4.10(a) and (b) and Section 4.14(a) for the purpose
of reimbursing amounts deducted pursuant to the foregoing clauses (c)and (d).
"CLASS C INVESTOR CHARGE-OFF" shall have the meaning specified in
subsection4.13(b).
"CLASS C MONTHLY INTEREST" means the interest distributable in respect
of the Class C Certificates as calculated in accordance with subsection 4.6(c).
"CLASS C PERCENTAGE" means the percentage derived from the fraction the
numerator of which is the Class C Invested Initial Amount and the denominator of
which is the sum of the Class A Initial Invested Amount, the Class B Initial
Invested Amount and the Class C Initial Invested Amount.
"CLASS C PRE-FUNDED AMOUNT" means the product of the Pre-Funded Amount
and the Class C Percentage.
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"CLASS C PRINCIPAL" means the principal distributable in respect of the
Class C Certificates as calculated in accordance with Section 4.7(c).
"CLASS C PRINCIPAL COMMENCEMENT DATE" means the earlier of (a)the
Distribution Date on which the Class B Invested Amount is paid in full or, if
there are no Principal Collections allocable to the Series1998-1 Investor
Certificates remaining after payments have been made to the Class B Certificates
on such Distribution Date, the Distribution Date following the Distribution Date
on which the Class B Invested Amount is paid in full and (b)the Distribution
Date following a sale or repurchase of the Receivables as set forth in the
Pooling and Servicing Agreement and the 1998-1 Series Supplement.
"CLASS C REQUIRED AMOUNT" means the amount determined by the Servicer
on each Business Day in a Monthly Period equal to the excess, if any, of (x)the
sum of (i) if the Class A Certificates and Class B Certificates have been
reduced to zero, interest accrued on the Class C Certificates for the prior
Monthly Period, (ii) if the Class A Certificates and Class B Certificates have
been reduced to zero, any interest due on the Class C Certificates but not paid
on any previous Distribution Date plus any Class C Additional Interest
previously due but not paid to the Class C Certificateholders on a prior
Distribution Date, (iii)if Green Tree or an Affiliate of Green Tree is no longer
the Servicer, the Class C Floating Allocation Percentage of the Servicing Fee
for the prior Monthly Period and (iv)the Class C Floating Allocation Percentage
of the Investor Default Amount, to the extent not previously paid, for any
Business Day in the prior Monthly Period over (y)the Series Available Interest
Collections plus any Excess Interest Collections from other Series allocated
with respect to the amounts described in clauses (x)(i)through (iv).
"CLASS D ADDITIONAL INTEREST" shall have the meaning specified in
subsection 4.6(d).
"CLASS D CERTIFICATE RATE" means, with respect to any Interest Accrual
Period, the lesser of (i) the applicable LIBOR plus .70% per annum or (ii) the
applicable Net Receivables Rate.
"CLASS D CERTIFICATEHOLDER" means the person in whose name a Class D
Certificate is registered in the Certificate Register.
"CLASS D CERTIFICATEHOLDERS' INTEREST" means the portion of the Series
1998-1 Certificateholders' Interest evidenced by the Class D Certificates.
"CLASS D CERTIFICATES" means any of the certificates executed by the
Transferor and authenticated by or on behalf of the Trustee, substantially in
the form of ExhibitD hereto.
"CLASS D FIXED/FLOATING ALLOCATION PERCENTAGE" means, with respect to
any Business Day, the percentage equivalent of a fraction, the numerator of
which is the
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Class D Invested Amount at the end of the last day of the Revolving Period and
the denominator of which is the greater of (a)the sum of the Pool Balance and
the amount on deposit in the Excess Funding Account as of the end of the
preceding Business Day and (b)the sum of the numerators used to calculate the
allocation percentages with respect to Principal Collections for all Series.
"CLASS D FLOATING ALLOCATION PERCENTAGE" means, with respect to any
Business Day, the percentage equivalent of a fraction, the numerator of which is
the Class D Invested Amount as of the end of the preceding Business Day and the
denominator of which is the greater of (a)the sum of the Pool Balance and the
amount on deposit in the Excess Funding Account at the end of the preceding
Business Day and (b)the sum of the numerators used to calculate the allocation
percentages with respect to Principal Collections for all Series.
"CLASS D INCREMENTAL INVESTED AMOUNT" means, for any Monthly Period,
the product of (a)a fraction, the numerator of which the Invested Amount
(exclusive of the Class D Incremental Invested Amount) on the last day of the
immediately preceding Monthly Period and the denominator of which is the Pool
Balance on such last day, times (b)the Overconcentration Amount for the
Distribution Date related to such Monthly Period.
"CLASS D INITIAL INVESTED AMOUNT" means the aggregate initial principal
amount of the Class D Certificates, which is $14,788,000.
"CLASS D INVESTED AMOUNT" means an amount equal to (a)the Class D
Initial Invested Amount, plus (b)the Class D Incremental Invested Amount for the
related Monthly Period, plus (c)any Additional Class D Invested Amount, minus
(d)the aggregate amount of principal payments made to Class D Certificateholders
prior to such date, minus (e)the aggregate amount of Class D Investor
Charge-Offs for all prior Distribution Dates equal to the amount by which the
Class D Invested Amount has been reduced to fund Investor Default Amounts on all
prior Distribution Dates pursuant to Section 4.13(a), minus (f)the aggregate
amount of Reallocated Class D Principal Collections for all prior Distribution
Dates, plus (g)the aggregate amount allocated and available on all prior
Business Days pursuant to subsection 4.9(a)(x) (including amounts applied
pursuant to such subsection but funded pursuant to Section 4.10(a) and (b)) for
the purpose of reimbursing amounts deducted pursuant to the foregoing clauses
(e) and plus (f).
"CLASS D INVESTOR CHARGE-OFF" shall have the meaning specified in
subsection4.13(a).
"CLASS D INVESTOR DEFAULT AMOUNT" means the portion of all Defaulted
Receivables in an amount equal to the product of (a)the Class D Floating
Allocation Percentage and (b)the aggregate principal amount (exclusive of the
portion thereof allocable to the Discount Factor, if any) of Defaulted
Receivables identified since the prior reporting date.
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"CLASS D PRINCIPAL" means the principal distributable in respect of the
Class D Certificates as calculated in accordance with subsection 4.7(d).
"CLASS D PRINCIPAL PAYMENT COMMENCEMENT DATE" means the earlier of
(a)the Distribution Date on which the Class C Invested Amount is paid in full
or, if there are no Principal Collections allocable to the Series 1998-1
Investor Certificates remaining after payments have been made to the Class C
Certificates on such Distribution Date, the Distribution Date following the
Distribution Date on which the Class C Invested Amount is paid in full and
(b)the Distribution Date following a sale or repurchase of the Receivables as
set forth in Pooling and Servicing Agreement and the 1998-1 Series Supplement.
"CLASS D SUBACCOUNT" means a subaccount of the Excess Funding Account,
into which Principal Collections allocable to Class D Certificates will be
deposited during any Early Amortization Period.
"CONTROLLED ACCUMULATION AMOUNT" means the quotient derived from
dividing the Class A Invested Amount as of the Distribution Date in October 2000
(after giving effect to any changes therein on such date) by the Accumulation
Period Length.
"CONTROLLED ACCUMULATION PERIOD" means, with respect to the
Series1998-1 Certificates, unless a Pay Out Event shall have occurred with
respect to such Series prior thereto, the period commencing on the Accumulation
Period Commencement Date and ending upon the earliest to occur of (i)the
commencement of the Early Amortization Period, (ii)payment in full to the
Investor Certificateholders of the Invested Amount, and (iii)the Series1998-1
Termination Date.
"CONTROLLED DEPOSIT AMOUNT" means, for any Monthly Period, the sum of
the (i)Controlled Accumulation Amount for such Monthly Period plus (ii)the
Accumulation Shortfall for the related Monthly Period.
"DISTRIBUTION DATE" means the 13th day of each month, or if such day is
not a Business Day, the next succeeding Business Day, beginning May 13, 1998.
"EARLY AMORTIZATION PERIOD" means the period beginning on the date that
a Pay Out Event occurs and ending on the earlier of (i)the date on which the
Class A Invested Amount, the Class B Invested Amount, the Class C Invested
Amount and the Class D Invested Amount have been paid in full and (ii)the Series
1998-1 Termination Date.
"ENHANCEMENT" means, with respect to the Class A Certificates, the
subordination of the Class B Invested Amount, the Class C Invested Amount and
the Class D Invested Amount, with respect to the Class B Certificates, the
subordination of the Class C Invested Amount and the Class D Invested Amount,
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and with respect to the Class C Certificates, the subordination of the Class D
Invested Amount.
"EXCESS INTEREST COLLECTIONS" means, with respect to any Business Day,
as the context requires, either (x)the amount described in subsection
4.9(a)(xiv) allocated to the Series 1998-1 Certificates but available to cover
shortfalls in amounts paid from Interest Collections for other Series, if any,
or (y)the aggregate amount of Interest Collections allocable to other Series in
excess of the amounts necessary to make required payments with respect to such
Series, if any, and available to cover shortfalls with respect to the Series
1998-1 Certificates.
"FIXED/FLOATING ALLOCATION PERCENTAGE" means, with respect to any
Business Day, the percentage equivalent of a fraction, the numerator of which is
the Class A Invested Amount, the Class B Invested Amount, the Class C Invested
Amount or the Class D Invested Amount, respectively, at the end of the last day
of the Revolving Period and the denominator of which is the greater of (a)the
Pool Balance (plus amounts, if any, on deposit in the Excess Funding Account) at
the end of the preceding Business Day and (b)the sum of the numerators used to
calculate allocation percentages with respect to Principal Collections for all
Series.
"FLOATING ALLOCATION PERCENTAGE" means for any Business Day, the sum of
the Class A Floating Allocation Percentage, the Class B Floating Allocation
Percentage, the Class C Floating Allocation Percentage and the Class D Floating
Allocation Percentage.
"FULL INVESTED AMOUNT" shall mean $455,000,000.
"FUNDING PERIOD" shall mean the period from and including the Series
1998-1 Issuance Date to but excluding the earlier of (x)the first day for which
the Invested Amount equals the Full Invested Amount; (y)the first day on which a
Pay Out Event is deemed to occur and (z)the first day of the September 1998
Monthly Period.
"INITIAL INVESTED AMOUNT" means the aggregate initial principal amount
of the Investor Certificates of Series 1998-1 less the Initial Pre-Funded
Amount, or $455,000,000.
"INITIAL PRE-FUNDED AMOUNT" shall mean $0.
"INTEREST ACCRUAL PERIOD" means, with respect to a Distribution Date,
the period from and including the preceding Distribution Date (or, in the case
of the first Distribution Date, from and including the Series 1998-1 Issuance
Date) to but excluding such Distribution Date.
"INVESTED AMOUNT" means, when used with respect to any Business Day, an
amount equal to the sum of (a)the Class A Invested Amount as of such Business
Day, (b)the Class B Invested Amount as of such Business Day, (c) the Class C
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Invested Amount as of such Business Day and (d)the Class D Invested Amount as of
such Business Day.
"INVESTOR CERTIFICATEHOLDER" means the Holder of record of an Investor
Certificate of Series 1998-1.
"INVESTOR CERTIFICATES" means the Class A Certificates, the Class B
Certificates, the Class C Certificates and the Class D Certificates.
"INVESTOR CHARGE-OFF" means the sum of the Class A Investor Charge-Off,
the Class B Investor Charge-Off, the Class C Investor Charge-Off and the Class D
Investor Charge-Off.
"INVESTOR DEFAULT AMOUNT" means, with respect to each Business Day, an
amount equal to the product of the Floating Allocation Percentage applicable for
such Business Day and the principal amount (exclusive of the portion thereof
allocable to the Discount Factor, if any) of Defaulted Receivables identified
since the prior Business Day.
"INVESTOR PERCENTAGE" means for any Business Day, (a)with respect to
Interest Receivables and Defaulted Receivables at any time or Principal
Receivables during the Revolving Period, the Floating Allocation Percentage and
(b)with respect to Principal Receivables during the Controlled Accumulation
Period or Early Amortization Period, the Fixed/Floating Allocation Percentage.
"LIBOR" means, for any Interest Accrual Period, the London interbank
offered quotations for one-month Dollar deposits on the related LIBOR
Determination Date determined by the Trustee in accordance with the provisions
of Section 4.15.
"LIBOR DETERMINATION DATE" means, for any Interest Accrual Period
following the initial Interest Accrual Period, the second Business Day prior to
the commencement of the second and each subsequent Interest Accrual Period. With
respect to the initial Interest Accrual Period, the Trustee will determine LIBOR
on April 13, 1998 for the period from April 15, 1998 through May 12, 1998. For
purposes of this definition, the term "Business Day" means any day on which
banks in London and NewYork are open for the transaction of international
business.
"MINIMUM AGGREGATE PRINCIPAL RECEIVABLES" means the sum of all
numerators used to calculate the allocation percentages with respect to
Principal Collections for all Series.
"MINIMUM TRANSFEROR INTEREST" means, as of any date of determination,
the sum of the product for each Series of (i)the Minimum Transferor Percentage
for such Series, times (ii)the Invested Amount for such Series.
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"MINIMUM TRANSFEROR PERCENTAGE" is 4% with respect to the Series 1998-1
Certificates.
"MONTHLY PAYMENT RATE" means, for any Monthly Period, the percentage
equivalent of a fraction, the numerator of which is the aggregate of the
Receivables balances (without deducting therefrom the discount portion, if any)
collected during such Monthly Period and the denominator of which is the average
daily aggregate Receivables balance (without deducting therefrom the discount
portion, if any) for such Monthly Period.
"MONTHLY PERIOD" shall have the meaning specified in the Agreement,
except that the first Monthly Period with respect to the Series 1998-1
Certificates shall begin on and include April 15, 1998.
"MONTHLY SERVICING FEE" means the portion of the servicing fee
allocable to the Series 1998-1 Certificateholders' Interest during each Monthly
Period, which will be equal to one-twelfth of the product of (x)the Servicing
Fee Rate per annum and (y)the Invested Amount on the first day of such Monthly
Period or, in the case of the first Distribution Date, the initial principal
amount of the Series 1998-1 Certificates.
"NEGATIVE CARRY AMOUNT" means, for any Business Day, to the extent that
any amounts are on deposit in the Excess Funding Account or the Pre-Funding
Account on such Business Day, an amount equal to the excess of (x)the product of
(a)the Base Rate, (b)the aggregate amount on deposit in the Excess Funding
Account and the Pre-Funding Account and (c)the number of days elapsed since the
previous Business Day divided by the actual number of days in such year over
(y)the aggregate amount of all earnings since the previous Business Day
available from the Cash Equivalents in which funds on deposit in the Excess
Funding Account and the Pre-Funding Account are invested.
"NET RECEIVABLES RATE" means, for any Distribution Date, the sum of
(i)the weighted average of the interest rates borne by the Receivables during
the second preceding Monthly Period (because interest payments on the
Receivables at such rates will be due and payable in the Monthly Period
preceding such Distribution Date), plus (ii)the product of (x)the Monthly
Payment Rate for the Monthly Period preceding such Distribution Date, the
(y)Discount Factor, if any, for such Distribution Date, and (z)twelve, less 2%
per annum, unless the Servicing Fee has been waived for such Monthly Period.
"PAYING AGENT" means, for the Series 1998-1 Certificates, Norwest Bank
Minnesota, National Association and Banque de Luxembourg.
"PERIOD LENGTH DETERMINATION DATE" means the Determination Date
immediately preceding the October 2000 Distribution Date and each Determination
Date thereafter until the Controlled Accumulation Period commences.
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"PORTFOLIO YIELD" means, with respect to any Monthly Period, the
annualized percentage equivalent of a fraction, the numerator of which is the
Series Available Interest Collections for such Monthly Period, calculated on a
cash basis, MINUS the aggregate Investor Default Amount for such Monthly Period,
and the denominator of which is the average daily Invested Amount plus the
Pre-Funded Amount during the preceding Monthly Period.
"PRE-FUNDING ACCOUNT" means the account established and maintained
pursuant to subsection 4.17(a).
"PRE-FUNDED AMOUNT" shall mean (a)the Initial Pre-Funded Amount, MINUS
(b)the amount of any increases in the Invested Amount during the Funding Period
pursuant to Section 4.18, MINUS (c)the amount of any principal losses on funds
on deposit in the Pre-Funding Account and MINUS (d)the amount withdrawn from the
Pre-Funding Account and deposited in the Excess Funding Account pursuant to
Section 4.17(b).
"PRINCIPAL FUNDING INVESTMENT SHORTFALL" means, for any day, the
difference between the amount of interest actually earned on investments in the
Principal Account on any day and the amount of interest that would have been
earned on such investments at the Base Rate for such day.
"PRINCIPAL INVESTMENT PROCEEDS" means investment earnings (net of
investment losses and expenses) on funds on deposit in the Principal Account
during the Controlled Accumulation Period.
"PRINCIPAL SHORTFALLS" means the amounts representing scheduled or
permitted principal distributions to certificateholders and deposits to
principal funding accounts, if any, for any Series that have not been covered
out of the Principal Collections allocable to such Series and certain other
amounts.
"PRODUCT LINE OVERCONCENTRATION" on any Distribution Date means the
excess of (a) the aggregate of all amounts of Principal Receivables in the
Accounts that represent financing for a single product line (other than
Asset-Based Receivables and Receivables that represent financing for
manufactured housing) on the last day of the Monthly Period immediately
preceding such Distribution Date over (b) 5% for marine products, 25% for
recreational vehicles, and 5% for any other products in total, of the total
Principal Receivables on the last day of such immediately preceding Monthly
Period. Notwithstanding the above, in the case of each such Overconcentration,
the percentage in clause (b)for such Overconcentration may be increased or
decreased by the Transferor, without the consent of any Certificateholder, to a
level acceptable to each Rating Agency without any reduction or withdrawal of
its rating of any Certificates rated by it (but which may involve an adjustment,
upward or downward, of certain Invested Amounts).
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"PURCHASE AGREEMENT" means the Receivables Purchase Agreement dated as
of December1, 1995, between the Transferor and Green Tree Financial Corporation.
"QUALIFIED INSTITUTION" means a depository institution or trust
company, which may include the Trustee, organized under the laws of the United
States or any one of the states thereof, which at all items has a certificate of
deposit rating of P-1 by Moody's, of A-1+ by Standard & Poor's of F-1+ by Fitch
if rated by Fitch or long-term unsecured debt obligation (other than such
obligation the rating of which is based on collateral or on the credit of a
person other than such institution or trust company) rating of Aaa by Moody's,
of AAA by Standard & Poor's and of AAA by Fitch if rated by Fitch and deposit
insurance provided by the FDIC, or a depository institution, which may include
the Trustee, which is acceptable to the Rating Agencies; provided, however, that
no such rating shall be required of an institution which shall have corporate
trust powers and which maintains the Collection Account, any principal account,
any interest funding account or any other account maintained for the benefit of
Certificateholders as a fully segregated trust account with the trust department
of such institution which is rated at least Baa3 by Moody's
"RATING AGENCY" means each of Standard & Poor's Rating Services, a
Division of The McGraw-Hill Companies, Inc. ("Standard & Poor's"), Moody's
Investors Service, Inc. ("Moody's") and Fitch IBCA, Inc. ("Fitch").
"REALLOCATED CLASS B PRINCIPAL COLLECTIONS" shall have the meaning
specified in subsection 4.14(c).
"REALLOCATED CLASS C PRINCIPAL COLLECTIONS" shall have the meaning
specified in subsection 4.14(b).
"REALLOCATED CLASS D PRINCIPAL COLLECTIONS" shall have the meaning
specified in subsection 4.14(a).
"REALLOCATED PRINCIPAL COLLECTIONS" means the sum of Reallocated Class
B Principal Collections, Reallocated Class C Principal Collections and
Reallocated Class D Principal Collections.
"REFERENCE BANKS" shall mean four major banks in the London interbank
market selected by the Servicer.
"REQUIRED AMOUNT" shall have the meaning specified in Section 4.10.
"REVOLVING PERIOD" with respect to Series 1998-1 means the period from
and including the Series 1998-1 Issuance Date to, but not including, the earlier
of (a)the commencement of the Controlled Accumulation Period and (b)the
commencement of the Early Amortization Period.
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"SERIES 1998-1" means the Series of the Green Tree Floorplan
Receivables Master Trust represented by the Series 1998-1 Certificates.
"SERIES 1998-1 CERTIFICATEHOLDER" means the holder of record of any
Series1998-1 Certificate.
"SERIES 1998-1 CERTIFICATEHOLDERS' INTEREST" shall have the meaning
specified in Section 4.4.
"SERIES 1998-1 ISSUANCE DATE" means April 15, 1998.
"SERIES 1998-1 PAY OUT EVENT" shall have the meaning specified in
Section 8 of this Series Supplement.
"SERIES 1998-1 TERMINATION DATE" means the earlier of (i)the date in
which the final distribution of principal and interest on the Series 1998-1
Certificates is made and (ii)the March 2003 Distribution Date.
"SERIES AVAILABLE INTEREST COLLECTIONS" shall have the meaning
specified in Section 4.9(a).
"SERIES SERVICING FEE PERCENTAGE" means 2.00% per annum.
"SERVICING FEE" means for any Monthly Period, an amount equal to the
product of (i)one-twelfth, (ii)the applicable Series Servicing Fee Percentage
and (iii)the Invested Amount as of the preceding Determination Date, or, in the
case of the first Distribution Date, the Initial Invested Amount.
"SERVICING FEE RATE" means 2.00% per annum.
"SHARED PRINCIPAL COLLECTIONS" means, as the context requires, either
(a)the amount allocated to the Series 1998-1 Investor Certificates which, in
accordance with subsections 4.9(b) and 4.9(c)(v) of the Agreement, may be
applied in accordance with Section 4.3(e) of the Agreement or (b)the amounts
allocated to the investor certificates (other than Transferor Retained
Certificates) of other Series which the applicable Supplements for such Series
specify are to be treated as "Shared Principal Collections" and which may be
applied as principal with respect to the Series 1998-1 Certificates.
"TARGETED HOLDER" shall mean each holder of a right to receive interest
or principal with respect to the Class C Certificates (or other interests in the
Trust), other than Certificates (or other such interests) with respect to which
an opinion is rendered that such Certificates (or other such interests) will be
treated as debt for federal income tax purposes, and any holder of a right to
receive any amount in respect of the Exchangeable Transferor Certificate;
PROVIDED, that any Person holding
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more than one interest each of which would cause such Person to be a Targeted
Holder shall be treated as a single Targeted Holder.
"TERMINATION PAYMENT DATE" means the earlier of the first Distribution
Date following the liquidation or sale of the Receivables as a result of an
Insolvency Event and the occurrence of the Series 1998-1 Termination Date.
"TRANSFER" shall have the meaning specified in subsection 11(a) of this
Series Supplement.
"TRANSFEROR INTEREST COLLECTIONS" means, on any Business Day, the
product of (a)the Interest Collections, (b)the Transferor Percentage and (c)the
Series Allocation Percentage for such Business Day.
"TRANSFEROR RETAINED CERTIFICATES" means, with respect to Series
1998-1, the Class D Certificates, which the Transferor retains, but only to the
extent that and for so long as the Transferor is the Holder of such
Certificates.
"TRUST ACCOUNTS" means the Interest Funding Account, the Principal
Account, the Distribution Account, the Collection Account, the Excess Funding
Account, the Pre-Funding Account and the Class D Subaccount of the Excess
Funding Account.
SECTION 3. OPTIONAL REPURCHASE. The Series 1998-1 Certificates shall be
subject to termination by the Transferor at its option, in accordance with the
terms specified in subsection 12.2(a) of the Agreement, on any Distribution Date
on or after the Distribution Date on which the sum of the Class A Invested
Amount, the Class B Invested Amount and the Class C Invested Amount is reduced
to an amount less than or equal to 10% of the sum of the Class A Initial
Invested Amount, the Class B Initial Invested Amount and the Class C Initial
Invested Amount. The deposit required in connection with any such termination
and final distribution shall be equal to the sum of the Class A Invested Amount,
the Class B Invested Amount and the Class C Invested Amount plus accrued and
unpaid interest on the Class A Certificates, Class B Certificates and Class C
Certificates through the day prior to the Distribution Date on which the final
distribution occurs.
SECTION 4. DELIVERY AND PAYMENT FOR THE SERIES 1998-1 CERTIFICATES. The
Transferor shall execute and deliver the Series 1998-1 Certificates to the
Trustee for authentication in accordance with Section 6.1 of the Agreement. The
Trustee shall deliver the Series 1998-1 Certificates to or upon the order of the
Transferor when authenticated in accordance with Section 6.2 of the Agreement.
It is a condition to the issuance of the Class A Certificates that they be rated
"AAA" by Standard & Poor's, "Aaa" by Moody's and "AAA" by Fitch. It is a
condition to the issuance of the Class B Certificates that they be rated at
least "A" by Standard & Poor's, "A3" by
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Moody's and "AA-" by Fitch. It is a condition to the issuance of the Class C
Certificates that they be rated at least "BBB" by Fitch.
SECTION 5. FORM OF DELIVERY OF SERIES 1998-1 CERTIFICATES. The Class A
Certificates, the Class B Certificates, the Class C Certificates and the Class D
Certificates shall be delivered as Registered Certificates as provided in
Section 6.1 of the Agreement. The Class C Certificates and the Class D
Certificates shall not be represented by Book-Entry Certificates pursuant to
Section 6.10.
SECTION 6. ARTICLE IV OF AGREEMENT. Sections 4.1, 4.2 and 4.3 of the
Agreement shall read in their entirety as provided in the Agreement. Article IV
of the Agreement (except for Sections 4.1, 4.2 and 4.3 thereof) shall read in
its entirety as follows and shall be applicable only to the Series 1998-1
Certificates:
ARTICLE IV
RIGHTS OF CERTIFICATEHOLDERS AND
ALLOCATION AND APPLICATION OF COLLECTIONS
Section 4.4 RIGHTS OF CERTIFICATEHOLDERS. The Series 1998-1
Certificates shall represent undivided interests in the Trust, consisting of the
right to receive, to the extent necessary to make the required payments with
respect to such Series 1998-1 Certificates at the times and in the amounts
specified in this Agreement, (a)the Floating Allocation Percentage and the
Fixed/Floating Allocation Percentage (as applicable from time to time) of
Collections available in the Collection Account, (b)funds allocable to the
Series 1998-1 Certificates on deposit in the Excess Funding Account, the Class D
Subaccount of the Excess Funding Account and the Pre-Funding Account and
(c)funds on deposit in the Interest Funding Account, the Principal Account and
the Distribution Account (for such Series, the "Series 1998-1
Certificateholders' Interest"). The Class B Invested Amount, the Class C
Invested Amount and the Class D Invested Amount shall be subordinated to the
Class A Certificates, the Class C Invested Amount and the Class D Invested
Amount shall be subordinated to the Class B Certificates, and the Class D
Invested Amount shall be subordinated to the Class C Certificates, in each case
to the extent provided in this Article IV. The Class B Certificates will not
have the right to receive payments of principal until the Class A Invested
Amount has been paid in full. The Class C Certificates will not have the right
to receive payments of principal until the Class A Invested Amount and the Class
B Invested Amount have been paid in full. The Class D Certificates will not have
the right to receive payments of principal until the Class A Invested Amount,
the Class B Invested Amount and the Class C Invested Amount have been paid in
full.
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Section 4.5 COLLECTIONS AND ALLOCATION; PAYMENTS ON EXCHANGEABLE
TRANSFEROR CERTIFICATE.
(a) COLLECTIONS. The Servicer will apply or will instruct the Trustee
to apply all funds on deposit in the Collection Account and the Excess Funding
Account (including the Class D Subaccount) allocable to the Series 1998-1
Certificates, and all funds on deposit in the Interest Funding Account, the
Principal Account, the Distribution Account maintained for this Series, and the
Pre-Funding Account maintained for this Series, as described in this Article IV.
(b) PAYMENTS TO THE HOLDER OF THE EXCHANGEABLE TRANSFEROR
CERTIFICATE. On each Business Day, the Servicer shall determine whether a Pay
Out Event is deemed to have occurred with respect to the Series 1998-1
Certificates, and the Servicer shall allocate and pay Collections in accordance
with the Daily Report with respect to such Business Day to the Holder of the
Exchangeable Transferor Certificate as follows:
(i) For each Business Day with respect to the Revolving
Period, in addition to amounts allocated and paid to the Holder of the
Exchangeable Transferor Certificate or pursuant to subsection 4.3(b) of
the Agreement, an amount equal (x)to the product of the Class D
Floating Allocation Percentage and the amount of Principal Collections
on such Business Day, MINUS (y)the Reallocated Class D Principal
Collections;
(ii) For each Business Day with respect to the Controlled
Accumulation Period or Early Amortization Period, prior to the Business
Day on which an amount equal to the Class C Invested Amount has been
deposited in the Principal Account to be applied to the payment of
Class C Principal, in addition to amounts allocated and paid to the
Holder of the Exchangeable Transferor Certificate pursuant to
subsection 4.3(b) of the Agreement, an amount equal to (x)the product
of the Class D Fixed/Floating Allocation Percentage and the amount of
Principal Collections on such Business Day MINUS (y)the Reallocated
Class D Principal Collections; provided that if such Business Day is in
the Early Amortization Period, such amount shall instead be deposited
in the Class D Subaccount; and
(iii) For each Business Day on and after the day on which
Principal Collections are being deposited in the Principal Account
pursuant to Section4.9(c)(iv), the amount of payments of Principal
Collections made to the Holder of the Exchangeable Transferor
Certificate shall be determined only as provided in subsection 4.3(b)
of the Agreement.
Notwithstanding the foregoing, amounts payable to the Transferor
pursuant to subsection 4.5(b)(i) or (ii)shall instead be deposited in the Excess
Funding Account to the extent necessary to prevent the Transferor Interest from
being less than the Minimum Transferor Interest.
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The allocations to be made pursuant to this subsection 4.5(b) also
apply to deposits into the Collection Account that are treated as Collections,
including payment of the reassignment price pursuant to Sections 2.4(c) and (d)
of the Agreement and proceeds from the sale, disposition or liquidation of the
Receivables pursuant to Section 9.2, 10.2, 12.1 or 12.2 of the Agreement and
Section 3 of this Series Supplement. Such deposits to be treated as Collections
will be allocated as Interest Receivables or Principal Receivables as provided
in the Agreement.
Section 4.6 DETERMINATION OF MONTHLY INTEREST FOR THE SERIES 1998-1
CERTIFICATES.
(a) The amount of monthly interest (the "Class A Monthly
Interest") allocable to the Class A Certificates with respect to any Interest
Accrual Period shall be an amount equal to the product of (i)the Class A
Certificate Rate, (ii)a fraction, the numerator of which is the actual number of
days in such Interest Accrual Period and the denominator of which is 360 and
(iii)the outstanding principal balance of the Class A Certificates at the close
of business on the first day of such Interest Accrual Period or, with respect to
the first Distribution Date, the initial outstanding principal balance of the
Class A Certificates.
On the Determination Date preceding each Distribution Date, the
Servicer shall determine an amount (the "Class A Interest Shortfall") equal to
the excess, if any, of (x)the Class A Monthly Interest for the Interest Accrual
Period applicable to the Distribution Date OVER (y)the amount available to be
paid to the Class A Certificateholders in respect of interest on such
Distribution Date. If there is a Class A Interest Shortfall with respect to any
Distribution Date, an additional amount ("Class A Additional Interest") shall be
payable as provided herein with respect to the Class A Certificates on each
Distribution Date following such Distribution Date, to and including the
Distribution Date on which such Class A Interest Shortfall is paid to Class A
Certificateholders, equal to the product of (i)the Class A Certificate Rate,
(ii)such Class A Interest Shortfall remaining unpaid and (iii) a fraction, the
numerator of which is the actual number of days in the related Interest Accrual
Period and the denominator of which is 360. Notwithstanding anything to the
contrary herein, Class A Additional Interest shall be payable or distributed to
Class A Certificateholders only to the extent permitted by applicable law.
(b) The amount of monthly interest (the "Class B Monthly
Interest") allocable to the Class B Certificates with respect to any Interest
Accrual Period shall be an amount equal to the product of (i)the Class B
Certificate Rate, (ii)the actual number of days in such Interest Accrual Period
divided by 360 and (iii)with respect to the Funding Period, the outstanding
principal balance of the Class B Certificates at the close of business on the
first day of such Interest Accrual Period (or, with respect to the first
Distribution Date, the initial outstanding principal balance of the Class B
Certificates) and, after the Funding Period, the Class B Invested Amount at the
close of business on the first day of such Interest Accrual Period.
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On the Determination Date preceding each Distribution Date, the
Servicer shall determine an amount (the "Class B Interest Shortfall") equal to
the excess, if any, of (x)the aggregate Class B Monthly Interest for the
Interest Accrual Period applicable to the Distribution Date OVER (y)the amount
available to be paid to the Class B Certificateholders in respect of interest on
such Distribution Date. If there is a Class B Interest Shortfall with respect to
any Distribution Date, an additional amount ("Class B Additional Interest")
shall be payable as provided herein with respect to the Class B Certificates on
each Distribution Date following such Distribution Date, to and including the
Distribution Date on which such Class B Interest Shortfall is paid to Class B
Certificateholders, equal to the product of (i)the Class B Certificate Rate,
(ii)such Class B Interest Shortfall remaining unpaid and (iii)a fraction, the
numerator of which is the actual number of days in the related Interest Accrual
Period and the denominator of which is 360. Notwithstanding anything to the
contrary herein, Class B Additional Interest shall be payable or distributed to
Class B Certificateholders only to the extent permitted by applicable law.
(c) The amount of monthly interest (the "Class C Monthly Interest")
allocable to the Class C Certificates with respect to any Interest Accrual
Period shall be an amount equal to the product of (i)the Class C Certificate
Rate, (ii)the actual number of days in such Interest Accrual Period divided by
360 and (iii)with respect to the Funding Period, the outstanding principal
balance of the Class C Certificates at the close of business on the first day of
such Interest Accrual Period (or, with respect to the first Distribution Date,
the initial outstanding principal balance of the Class C Certificates) and,
after the Funding Period, the aggregate outstanding principal amount of the
Class C Certificates at the close of business on the first day of such Interest
Accrual Period.
On the Determination Date preceding each Distribution Date, the
Servicer shall determine an amount (the "Class C Interest Shortfall") equal to
the excess, if any, of (x)the aggregate Class C Monthly Interest for the
Interest Accrual Period applicable to the Distribution Date OVER (y)the amount
available to be paid to the Class C Certificateholders in respect of interest on
such Distribution Date. If there is a Class C Interest Shortfall with respect to
any Distribution Date, an additional amount ("Class C Additional Interest")
shall be payable as provided herein with respect to the Class C Certificates on
each Distribution Date following such Distribution Date, to and including the
Distribution Date on which such Class C Interest Shortfall is paid to Class C
Certificateholders, equal to the product of (i)the Class C Certificate Rate,
(ii)such Class C Interest Shortfall remaining unpaid and (iii)a fraction, the
numerator of which is the actual number of days in the related Interest Accrual
Period and the denominator of which is 360. Notwithstanding anything to the
contrary herein, Class C Additional Interest shall be payable or distributed to
Class C Certificateholders only to the extent permitted by applicable law.
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(d) The amount of monthly interest (the "Class D Monthly
Interest") allocable to the Class D Certificates with respect to any Interest
Accrual Period shall be an amount equal to the product of (i)the Class D
Certificate Rate, (ii)the actual number of days in such Interest Accrual Period
divided by 360 and (iii)with respect to the Funding Period, the outstanding
principal balance of the Class D Certificates at the close of business on the
first day of such Interest Accrual Period (or, with respect to the first
Distribution Date, the initial outstanding principal balance of the Class D
Certificates) and, after the Funding Period, the Class D Invested Amount at the
close of business on the first day of such Interest Accrual Period.
On the Determination Date preceding each Distribution Date, the
Servicer shall determine an amount (the "Class D Interest Shortfall") equal to
the excess, if any, of (x)the aggregate Class D Monthly Interest for the
Interest Accrual Period applicable to the Distribution Date OVER (y)the amount
available to be paid to the Class D Certificateholders in respect of interest on
such Distribution Date. If there is a Class D Interest Shortfall with respect to
any Distribution Date, an additional amount ("Class D Additional Interest")
shall be payable as provided herein with respect to the Class D Certificates on
each Distribution Date following such Distribution Date, to and including the
Distribution Date on which such Class D Interest Shortfall is paid to Class D
Certificateholders, equal to the product of (i)the Class D Certificate Rate,
(ii)such Class D Interest Shortfall remaining unpaid and (iii) a fraction, the
numerator of which is the actual number of days in the related Interest Accrual
Period and the denominator of which is 360. Notwithstanding anything to the
contrary herein, Class D Additional Interest shall be payable or distributed to
Class D Certificateholders only to the extent permitted by applicable law.
Section 4.7 DETERMINATION OF PRINCIPAL AMOUNTS.
(a) The amount of principal (the "Class A Principal") with respect to
the Class A Certificates for each Distribution Date during the Controlled
Accumulation Period or Early Amortization Period shall be equal to an amount
calculated as follows: the sum of (i)an amount equal to the product of the ABC
Fixed/Floating Allocation Percentage and the aggregate amount of Principal
Collections (less the amount of Reallocated Class B Principal Collections and
Reallocated Class C Principal Collections) with respect to the preceding Monthly
Period, (ii)any amount on deposit in the Excess Funding Account (exclusive of
amounts, if any, in the Class D Subaccount) allocated to the Class A
Certificates pursuant to subsection 4.9(d) of the Agreement, and any amount on
deposit in the Pre-Funding Account (exclusive of any investment earnings)
allocated to the Class A Certificates pursuant to Section 4.18, with respect to
the preceding Monthly Period, (iii)the amount, if any, allocated to the Class A
Certificates pursuant to subsections 4.9(a)(iv), (vi), (viii) and (ix) of the
Agreement and, with respect to such subsections, pursuant to subsections4.10(a)
and (b)and 4.14(a), (b) and (c) of the Agreement, and (iv)the amount of Shared
Principal Collections allocated to the Class A Certificates with respect to the
preceding Monthly Period pursuant to Section 4.8 of the Agreement;
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PROVIDED, HOWEVER, that with respect to any Distribution Date during the
Controlled Accumulation Period, Class A Principal may not exceed the lesser of
(i)the Controlled Deposit Amount for such Distribution Date and (ii)the Class A
Invested Amount; PROVIDED, FURTHER, that with respect to the Series1998-1
Termination Date, the Class A Principal shall be an amount equal to the Class A
Invested Amount.
(b) The amount of principal (the "Class B Principal") with respect to
the Class B Certificates for each Distribution Date on or after the Class B
Principal Commencement Date shall equal an amount calculated as follows: the sum
of (i)an amount equal to the product of the ABC Fixed/ Floating Allocation
Percentage and the aggregate amount of Principal Collections (less the amount of
Reallocated Class B Principal Collections and Reallocated Class C Principal
Collections) with respect to the preceding Monthly Period (or, in the case of
the first Distribution Date following the date on which an amount equal to the
Class A Invested Amount is deposited in the Principal Account to be applied to
the payment of Class A Principal, the ABC Fixed/Floating Allocation Percentage
of Principal Collections from the date on which such deposit is made), (ii)any
amount on deposit in the Excess Funding Account (exclusive of amounts, if any,
in the Class D Subaccount) allocated to the Class B Certificates pursuant to
subsection 4.9(d) of the Agreement, and any amount on deposit in the Pre-Funding
Account (exclusive of any investment earnings) allocated to the Class B
Certificates pursuant to Section 4.18, with respect to the preceding Monthly
Period, (iii)the amount, if any, allocated to the Class B Certificates pursuant
to subsections 4.9(a)(iv), (viii) and (ix) of the Agreement and, with respect to
such subsections, pursuant to subsections 4.10(a) and (b) and 4.14(a) and (b) of
the Agreement with respect to such Distribution Date and (iv)the amount of
Shared Principal Collections allocated to the Class B Certificates with respect
to the preceding Monthly Period pursuant to Section 4.8 of the Agreement on or
after the Class B Principal Commencement Date; PROVIDED, HOWEVER, that, with
respect to any Distribution Date during the Controlled Accumulation Period,
Class B Principal may not exceedthe Class B Invested Amount; PROVIDED, FURTHER,
that with respect to the Series1998-1 Termination Date, the Class B Principal
shall be an amount equal to the Class B Invested Amount.
(c) The amount of principal (the "Class C Principal") with respect to
the Class C Certificates for each Distribution Date beginning on or after the
Class C Principal Commencement Date shall equal an amount calculated as follows:
the sum of (i)an amount equal to the product of the ABC Fixed/ Floating
Allocation Percentage and the aggregate amount of Principal Collections (less
the amount of Reallocated Class C Principal Collections) with respect to the
preceding Monthly Period (or, in the case of the first Distribution Date
following the date on which an amount equal to the Class B Invested Amount is
deposited in the Principal Account to be applied to the payment of Class B
Principal, the ABC Fixed/Floating Allocation Percentage of Principal Collections
from the date on which such deposit is made), (ii)any amounts on deposit in the
Excess Funding Account (other than the Class D Subaccount) allocated to the
Class C Certificates pursuant to subsection 4.9(d) of the Agreement, and any
amount on deposit in the Pre-Funding Account (exclusive of
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any investment earnings) allocated to the Class C Certificates pursuant to
Section 4.18, with respect to the preceding Monthly Period, (iii)the amount, if
any, allocated to the Class C Certificates pursuant to subsections 4.9(a)(iv)
and (ix) of the Agreement with respect to such Distribution Date and (iv)the
amount of Shared Principal Collections allocated to the Class C Certificates
with respect to the preceding Monthly Period pursuant to Section 4.8 of the
Agreement on and after the Class C Principal Commencement Date; PROVIDED, that
with respect to any Distribution Date, Class C Principal may not exceed the
Class C Invested Amount; PROVIDED, FURTHER, that with respect to the
Series1998-1 Termination Date, the Class C Principal shall be an amount equal to
the Class C Invested Amount.
(d) The amount of principal (the "Class D Principal") with respect to
the Class D Certificates for the Transfer Date preceding the Class D Principal
Commencement Date, and for each Transfer Date thereafter until the Trust is
terminated or until the Class D Invested Amount is paid in full, shall equal an
amount calculated as follows: the sum of (i)an amount equal to the product of
the Class D Fixed/Floating Allocation Percentage of Principal Collections (less
the amount of Reallocated Class D Principal Collections) with respect to the
preceding Monthly Period (or, in the case of the first Distribution Date
following the date on which an amount equal to the Class C Invested Amount is
deposited in the Principal Account to be applied to the payment of Class C
Principal, the Class D Fixed/Floating Allocation Percentage of Principal
Collections from the date on which such deposit is made), (ii)any amount on
deposit in the Excess Funding Account allocated to the Class D Certificates
pursuant to subsection 4.9(d) of the Agreement with respect to the preceding
Monthly Period, and (iii)the amount, if any, allocated to the Class D
Certificates pursuant to subsections 4.9(a)(v) and (x)of the Agreement and, with
respect to such subsections, pursuant to subsection 4.10(a) and (b) of the
Agreement with respect to such Distribution Date; PROVIDED, HOWEVER, that with
respect to the Series 1998-1 Termination Date, the Class D Principal shall be an
amount equal to the Class D Invested Amount.
Section 4.8 SHARED PRINCIPAL COLLECTIONS. Shared Principal Collections
allocated to the Series 1998-1 Certificates and to be applied pursuant to
subsections4.9(c)(i)(y), 4.9(c)(ii)(y), 4.9(c)(iii)(y) and 4.9(c)(iv)(z) for any
Business Day with respect to the Controlled Accumulation Period shall mean an
amount equal to the product of (x)Shared Principal Collections for all Series
for such Business Day and (y)a fraction, the numerator of which is the Principal
Shortfall for the Series 1998-1 Certificates for such Business Day and the
denominator of which is the aggregate amount of Principal Shortfalls for all
Series for such Business Day. For any Business Day with respect to the Revolving
Period, Shared Principal Collections allocated to the Series 1998-1 Certificates
shall be zero.
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Section 4.9 APPLICATION OF FUNDS ON DEPOSIT IN THE COLLECTION ACCOUNT
FOR THE CERTIFICATES.
(a) On each Business Day, the Servicer shall deliver to the Trustee a
Daily Report in which it shall instruct the Trustee to withdraw, and the
Trustee, acting in accordance with such instructions, shall withdraw, to the
extent of the amount of the Floating Allocation Percentage of Interest
Collections available in the Collection Account and net investment earnings on
amounts in the Pre-Funding Account (the "Series Available Interest
Collections"), the amounts required to be withdrawn from the Collection Account
pursuant to subsections4.9(a)(i) through 4.9(a)(xiv).
(i) Class A INTEREST. On each Business Day during a Monthly
Period, the Trustee, acting in accordance with instructions from the
Servicer, shall withdraw from the Collection Account and deposit into
the Interest Funding Account for distribution on the next Distribution
Date to the Class A Certificateholders, to the extent of the Series
Available Interest Collections for such Business Day, an amount equal
to the lesser of (x)the Series Available Interest Collections and
(y)the excess of (1)the sum of Class A Monthly Interest and Carryover
Class A Interest OVER (2)any amounts with respect thereto previously
deposited into the Interest Funding Account on any prior Business Day
during such Monthly Period. Notwithstanding anything to the contrary
herein, the portion of Carryover Class A Interest that constitutes
Class A Additional Interest shall be payable or distributable to Class
A Certificateholders only to the extent permitted by applicable law.
(ii) Class B INTEREST. On each Business Day during a Monthly
Period, the Trustee, acting in accordance with instructions from the
Servicer, shall withdraw from the Collection Account and deposit into
the Interest Funding Account for distribution on the next Distribution
Date to the Class B Certificateholders, to the extent of any Series
Available Interest Collections remaining after giving effect to the
withdrawal pursuant to subsection 4.9(a)(i), an amount equal to the
lesser of (x)any such remaining Series Available Interest Collections
and (y)the excess of (1)the sum of Class B Monthly Interest and
Carryover Class B Interest OVER (2)any amounts with respect thereto
previously deposited into the Interest Funding Account on any prior
Business Day during such Monthly Period. Notwithstanding anything to
the contrary herein, the portion of Carryover Class B Interest that
constitutes Class B Additional Interest shall be payable or
distributable to Class B Certificateholders only to the extent
permitted by applicable law.
(iii) MONTHLY SERVICING FEE. On each Business Day on which
Green Tree or an Affiliate of Green Tree is not the Servicer, the
Trustee, acting in accordance with instructions from the Servicer,
shall withdraw from the Collection Account and distribute to the
Servicer, to the extent of any Series Available Interest Collections
remaining after giving effect to the withdrawals pursuant to
subsections 4.9(a)(i) and (ii), an amount equal to the lesser of
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(x)any such remaining Series Available Interest Collections and (y)the
excess of (i)the Monthly Servicing Fee for such Monthly Period plus any
unpaid Monthly Servicing Fees from prior Monthly Periods over (ii)any
amounts with respect thereto previously distributed to the Servicer
during such Monthly Period.
(iv) ABC INVESTOR DEFAULT AMOUNT. On each Business Day, the Trustee,
acting in accordance with instructions from the Servicer, shall
withdraw from the Collection Account, to the extent of any Available
Series1998-1 Interest Collections remaining after giving effect to the
withdrawals pursuant to subsections 4.9(a)(i) through (iii), an amount
equal to the lesser of (x)any such remaining Series Available Interest
Collections and (y)the sum of (1)the aggregate ABC Investor Default
Amount for such Business Day PLUS (2)the unpaid ABC Investor Default
Amount for each previous Business Day during such Monthly Period, such
amount to be (A)treated as Shared Principal Collections during the
Revolving Period, and (B)to the extent allocated to Class A Principal,
Class B Principal or Class C Principal pursuant to Section 4.7 during
the Controlled Accumulation Period or Early Amortization Period,
deposited in the Principal Account for distribution to the applicable
Class or Classes of Certificateholders on the next Distribution Date.
(v) CLASS D INVESTOR DEFAULT AMOUNT. On each Business Day, the Trustee,
acting in accordance with instructions from the Servicer, shall
withdraw from the Collection Account, to the extent of any Available
Series1998-1 Interest Collections remaining after giving effect to the
withdrawals pursuant to subsections 4.9(a)(i) through (iv), an amount
equal to the lesser of (x)any such remaining Series Available Interest
Collections and (y)the sum of (1)the aggregate Class D Investor Default
Amount for such Business Day PLUS (2)the unpaid Class D Investor
Default Amount for each previous Business Day during such Monthly
Period, such amount to be (A)paid to the Transferor during the
Revolving Period and the Controlled Accumulation Period prior to the
payment in full of the Class C Invested Amount, (B)to the extent
allocated to Class D Principal pursuant to Section4.7 during the
Controlled Accumulation Period or Early Amortization Period following
the payment in full of the Class C Invested Amount, deposited in the
Principal Account for distribution to the Class D Certificateholders on
the next Distribution Date and (C)during the Early Amortization Period
prior to the payment of the Class C Invested Amount in full, deposited
in the Class D Subaccount of the Excess Funding Account to be available
to be applied as Reallocated Class D Principal Collections until the
Class C Invested Amount has been paid in full and, after the Class C
Invested Amount has been paid in full, paid to the Transferor.
(vi) REIMBURSEMENT OF Class A INVESTOR CHARGE-OFF. On each Business
Day, the Trustee, acting in accordance with instructions from the
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Servicer, shall withdraw from the Collection Account, to the extent of
any Series Available Interest Collections remaining after giving effect
to the withdrawals pursuant to subsections 4.9(a)(i) through (v), an
amount equal to the lesser of (x)any such remaining Series Available
Interest Collections and (y)the unreimbursed Class A Investor Charge-
Off, if any, which amount will be applied to reimburse Class A Investor
Charge-Off, such amount during the Revolving Period to be treated as
Shared Principal Collections, and during the Controlled Accumulation
Period or Early Amortization Period on and prior to the day on which an
amount equal to the Class A Invested Amount is deposited in the
Principal Account, to be deposited in the Principal Account for
distribution to the Class A Certificateholders on the next Distribution
Date.
(vii) UNPAID Class B INTEREST. On each Business Day, the
Trustee, acting in accordance with the instructions from the Servicer,
shall withdraw from the Collection Account and deposit in the Interest
Funding Account for distribution to the Class B Certificateholders on
the next Distribution Date, to the extent of any Series Available
Interest Collections remaining after giving effect to the withdrawals
pursuant to subsections 4.9(a)(i) through (vi), an amount equal to the
lesser of (x)any such remaining Series Available Interest Collections
and (y)the sum of (1)the amount of interest which has accrued with
respect to the outstanding aggregate principal amount of the Class B
Certificates at the Class B Certificate Rate but which has not been
deposited into the Interest Funding Account with respect to the Class B
Certificateholders and (2)any additional interest (to the extent
permitted by applicable law) at the Class B Certificate Rate accrued on
interest that was due during a prior Monthly Period pursuant to this
subsection but was not deposited in the Interest Funding Account or
paid to the Class B Certificateholders.
(viii) REIMBURSEMENT OF Class B INVESTOR CHARGE-OFF. On each
Business Day, the Trustee, acting in accordance with instructions from
the Servicer, shall withdraw from the Collection Account, to the extent
of any Series Available Interest Collections remaining after giving
effect to the withdrawals pursuant to subsections 4.9(a)(i) through
(vii), an amount equal to the lesser of (x)any such remaining Series
Available Interest Collections and (y)the unreimbursed amount by which
the Class B Invested Amount has been reduced on prior Business Days
pursuant to clauses (c) and (d) of the definition of Class B Invested
Amount, if any, such amount, (i)during the Revolving Period, to be
treated as Shared Principal Collections, (ii)during the Controlled
Accumulation Period or Early Amortization Period but prior to the Class
B Principal Commencement Date, to be deposited in the Principal Account
for distribution to the Class A Certificateholders on the next
Distribution Date, and (iii)during the Controlled Accumulation Period
or Early Amortization Period, on and after the Class B Principal
Commencement Date but prior to the Class C Principal Commencement Date,
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to be deposited in the Principal Account for payment to the Class B
Certificateholders on the next Distribution Date.
(ix) REIMBURSEMENT OF Class C INVESTOR CHARGE-OFF. On each
Business Day, the Trustee, acting in accordance with instructions from
the Servicer, shall withdraw from the Collection Account, to the extent
of any Series Available Interest Collections remaining after giving
effect to the withdrawals pursuant to subsections 4.9(a)(i) through
(viii), an amount equal to the lesser of (x)any such remaining Series
Available Interest Collections and (y)the unreimbursed amount by which
the Class C Invested Amount has been reduced on prior Business Days
pursuant to clauses (c) and (d) of the definition of Class C Invested
Amount, if any, such amount, (i)during the Revolving Period, to be
treated as Shared Principal Collections, (ii)during the Controlled
Accumulation Period or Early Amortization Period but prior to the Class
B Principal Commencement Date, to be deposited in the Principal Account
for distribution to the Class A Certificateholders on the next
Distribution Date, (iii)during the Controlled Accumulation Period or
Early Amortization Period, on and after the Class B Principal
Commencement Date but prior to the Class C Principal Commencement Date,
to be deposited in the Principal Account for distribution to the Class
B Certificateholders on the next Distribution Date and (iv)on and after
Class C Principal Commencement Date, to be deposited in the Principal
Account for payment to the Class C Certificateholders on the next
Distribution Date.
(x) REIMBURSEMENT OF Class D INVESTOR CHARGE-OFF. On each
Business Day, the Trustee, acting in accordance with instructions from
the Servicer, shall withdraw from the Collection Account, to the extent
of any Series Available Interest Collections remaining after giving
effect to the withdrawals pursuant to subsections 4.9(a)(i) through
(ix), an amount equal to the lesser of (x)any such remaining Series
Available Interest Collections and (y)the unreimbursed amount by which
the Class D Invested Amount has been reduced on prior Business Days
pursuant to clauses (e) and (f) of the definition of Class D Invested
Amount, if any, such amount, (i)during the Revolving Period, and during
the Controlled Accumulation Period on and prior to the day on which an
amount equal to the Class C Invested Amount is deposited in the
Principal Account, paid to the Transferor, (ii)during the Early
Amortization Period, be deposited in the Class D Subaccount of the
Excess Funding Account, to be held until the Class C Invested Amount
has been paid in full, and to be available to be applied as Reallocated
Class D Principal Collections and (iii)during the Controlled
Accumulation Period on and after the day the deposit to the Principal
Account with respect to Class C Invested Amount referred to in clause
(i) has been made, deposited in the Principal Account for payment to
the Class D Certificateholders.
(xi) Class C INTEREST. On each Business Day, the Trustee,
acting in accordance with the instructions from the Servicer, shall
withdraw from the
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Collection Account and deposit in the Interest Funding Account for
distribution to the Class C Certificateholders on the next Distribution
Date, to the extent of any Series Available Interest Collections
remaining after giving effect to the withdrawals pursuant to
subsections 4.9(a)(i) through (x), an amount equal to the lesser of
(x)any such remaining Series Available Interest Collections and (y) the
excess of (1)the sum of the Class C Monthly Interest and Carryover
Class C Interest OVER (2) any amounts with respect thereto previously
deposited into the Interest Funding Account on any prior Business Day
during such Monthly Period. Notwithstanding anything to the contrary
herein, the portion of Carryover Class C Interest that constitutes
Class C Additional Interest shall be payable or distributable to Class
C Certificateholders only to the extent permitted by applicable law.
(xii) UNPAID Class D INTEREST. On each Business Day, the
Trustee, acting in accordance with the instructions from the Servicer,
shall withdraw from the Collection Account and deposit in the Interest
Funding Account for distribution to the Class D Certificateholders on
the next Distribution Date, to the extent of any Series Available
Interest Collections remaining after giving effect to the withdrawals
pursuant to subsections 4.9(a)(i) through (xi), an amount equal to the
lesser of (x)any such remaining Series Available Interest Collections
and (y)the sum of (1)the amount of interest which has accrued with
respect to the outstanding aggregate principal amount of the Class D
Certificates at the Class D Certificate Rate but which has not been
deposited into the Interest Funding Account with respect to the Class D
Certificateholders and (2)any additional interest (to the extent
permitted by applicable law) at the Class D Certificate Rate accrued on
interest that was due during a prior Monthly Period pursuant to this
subsection but was not deposited in the Interest Funding Account or
paid to the Class D Certificateholders.
(xiii) MONTHLY SERVICING FEE. On each Business Day, if Green
Tree or an Affiliate of Green Tree is the Servicer, the Trustee, acting
in accordance with instructions from the Servicer, shall withdraw from
the Collection Account and distribute to the Servicer, to the extent of
Series Available Interest Collections for such Business Day (after
giving effect to the withdrawals pursuant to subsections 4.9(a)(i)
through (xii) of the Agreement), the Monthly Servicing Fee accrued
since the preceding Business Day plus any Monthly Servicing Fee due
with respect to any prior Business Day but not distributed to the
Servicer.
(xiv) EXCESS INTEREST COLLECTIONS. Any amounts remaining in
the Collection Account to the extent of any Series Available Interest
Collections remaining after giving effect to the withdrawals pursuant
to subsection 4.9(a)(i) through (xiii), shall be treated as Excess
Interest Collections, and the Servicer shall direct the Trustee in
writing on each Business Day to withdraw such amounts from the
Collection Account and to first make such amounts
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available to pay to Certificateholders of other Series to the extent of
shortfalls, if any, in amounts payable to such certificateholders from
Interest Collections allocated to such other Series, then to pay any
unpaid commercially reasonable costs and expenses of a Successor
Servicer, if any, and then pay any remaining Excess Interest
Collections to the Transferor.
(b) For each Business Day with respect to the Revolving Period, the
funds on deposit in the Collection Account to the extent of the product of
(i)the sum of the Class A Floating Allocation Percentage, the Class B Floating
Allocation Percentage and the Class C Floating Allocation Percentage and
(ii)Principal Collections with respect to such Business Day (less the amount of
ReallocatedClass C Principal Collections and Reallocated Class B Principal
Collections on such Business Day) will be treated as Shared Principal
Collections and applied, pursuant to the written direction of the Servicer in
the Daily Report for such Business Day, as provided in Section 4.3(e) of the
Agreement.
(c) For each Business Day on and after the Accumulation Period
Commencement Date or the commencement of the Early Amortization Period, the
amount of funds on deposit in the Collection Account, the Excess Funding Account
and the Pre-Funding Account as described below will be distributed, pursuant to
the written direction of the Servicer in the Daily Report for such Business Day,
in the following priority:
(i) on and prior to the day on which an amount equal to the
Class A Invested Amount has been deposited in the Principal Account to
be applied to the payment of Class A Principal, an amount (not in
excess of the Class A Invested Amount) equal to the sum of (v)the
product of the ABC Fixed/ Floating Allocation Percentage and Principal
Collections in the Collection Account at the end of the preceding
Business Day (less the amount thereof to be applied as Reallocated
Class B Principal Collections or Reallocated Class C Principal
Collections on such Business Day), (w)any amount on deposit in the
Excess Funding Account allocated to the Class A Certificates on such
Business Day pursuant to subsection 4.9(d) plus any amount (exclusive
of investment earnings) on deposit in the Pre-Funding Account,
(x)amounts to be paid pursuant to subsections 4.9(a)(iv), (vi), (viii)
and (ix) of the Agreement from Available Series Interest Collections
and from amounts available pursuant to subsections 4.10(a) and (b) and
4.14(a), (b) and (c) of the Agreement on such Business Day and (y)the
amount of Shared Principal Collections allocated to the Series 1998-1
Certificates in accordance with Section 4.8 on such Business Day, will
be deposited into the Principal Account;
(ii) on and after the day on which an amount equal to the
Class A Invested Amount has been deposited in the Principal Account to
be applied to the payment of Class A Principal, an amount (not in
excess of the Class B Invested Amount) equal to the sum of (v) an
amount equal to the product of
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the ABC Fixed/Floating Allocation Percentage and Principal Collections
in the Collection Account at the end of the preceding Business Day
(less the amount thereof to be applied as Reallocated Class B Principal
Collections or Reallocated Class C Principal Collections on such
Business Day), (w) any amount on deposit in the Excess Funding Account
allocated to the Class B Certificates on such Business Day pursuant to
subsection 4.9(d) plus any amount (exclusive of investment earnings) on
deposit in the Pre-Funding Account, (x)the amount, if any, allocated to
be paid to the Class B Certificates pursuant to subsections 4.9(a)(iv),
(viii) and (ix) of the Agreement from Available Series Interest
Collections and from amounts available pursuant to subsections 4.10(a)
and (b) and 4.14(a) and (b) of the Agreement with respect to such
Business Day and (y)the amount of Shared Principal Collections
allocated to the Series 1998-1 Certificates in accordance with Section
4.8 on such Business Day (such sum, the "Class B Daily Principal
Amount") will be deposited into the Principal Account;
(iii) on and after the day on which an amount equal to the
Class B Invested Amount has been deposited in the Principal Account to
be applied to the payment of Class B Principal, an amount (not in
excess of the Class C Invested Amount) equal to the sum of (v)an amount
equal to the product of the ABC Fixed/Floating Allocation Percentage
and Principal Collections in the Collection Account at the end of the
preceding Business Day (less the amount thereof to be applied as
Reallocated Class C Principal Collections on such Business Day), (w)any
amount on deposit in the Excess Funding Account allocated to the Class
C Certificates on such Business Day pursuant to subsection 4.9(d) plus
any amount (exclusive of investment earnings) on deposit in the
Pre-Funding Account, (x)the amount, if any, allocated to be paid to the
Class C Certificates pursuant to subsections 4.9(a)(iv) and (ix) of the
Agreement from Available Series Interest Collections and from amounts
available pursuant to subsections 4.10(a) and (b) and 4.14(a) of the
Agreement with respect to such Business Day and (y)the amount of Shared
Principal Collections allocated to the Series 1998-1 Certificates in
accordance with Section 4.8 on such Business Day (such sum, the "Class
C Daily Principal Amount") will be deposited into the Principal
Account;
(iv) on and after the day on which an amount equal to the
Class C Invested Amount has been deposited in the Principal Account to
be applied to the payment of Class C Principal, an amount equal to the
sum of (w)an amount equal to the product of the Class D Fixed/Floating
Allocation Percentage and Principal Collections in the Collection
Account at the end of the preceding Business Day (less the amount
thereof to be applied as Reallocated Class D Principal Collections on
such Business Day), (x)any amount on deposit in the Excess Funding
Account allocated to the Class D Certificates on such Business Day
pursuant to subsection 4.9(d), (y)the amount, if any, allocated to be
paid to the Class D Certificates pursuant to subsections 4.9(a)(v) and
(x) of the Agreement from Available Series Interest
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Collections and from amounts available pursuant to subsections 4.10(a)
and (b) of the Agreement with respect to such Business Day and (z)the
amount of Shared Principal Collections allocated to the Series1998-1
Certificates in accordance with Section 4.8 on such Business Day (such
sum, the "Class D Daily Principal Amount") will be distributed to the
Class D Certificateholders; and
(v) notwithstanding subsections 4.9(c)(i), (ii), (iii) and
(iv), an amount equal to the excess, if any, of (A)the sum of the
amounts described in clauses (i)(v) and (x), (ii)(v) and (x) and
(iii)(v) and (x)above over (B)the Class A Principal, Class B Principal
and Class C Principal, respectively, for the related Distribution Date
will be treated as Shared Principal Collections and applied as provided
in subsection 4.3(e) of the Agreement.
(d) On the first Business Day of the Controlled Accumulation Period or
Early Amortization Period, funds on deposit in the Excess Funding Account
(exclusive of amounts, if any, in the Class D Subaccount) will be deposited in
the Principal Account. Such amounts will be allocated in the following order of
priority: (i)to the Class A Certificates in an amount not to exceed the Class A
Principal for the related Distribution Date after subtracting therefrom any
amounts to be deposited in the Principal Account with respect thereto pursuant
to subsections 4.9(c)(i)(v), (x) and (y), (ii)to the Class B Certificates in an
amount not to exceed the Class B Principal for the related Distribution Date
after subtracting therefrom any amounts to be deposited in the Principal Account
with respect thereto pursuant to subsections 4.9(c)(ii)(v), (x) and (y), and
(iii)to the Class C Certificates in an amount not to exceed the Class C
Principal after subtracting therefrom any amounts to be deposited in the
Principal Account with respect thereto pursuant to subsections4.9(c)(iii)(v),
(x) and (y). On and after the Class D Principal Commencement Date any amounts
remaining on deposit in the Excess Funding Account and allocated to the Series
1998-1 Certificates will be deposited in the Principal Account in an amount not
to exceed the Class D Invested Amount after subtracting therefrom any amounts to
be deposited in the Principal Account with respect thereto pursuant to
subsections 4.9(c)(iv)(w), (x), (y) and (z).
Section 4.10 COVERAGE OF REQUIRED AMOUNT FOR THE SERIES 1998-1
CERTIFICATES.
(a) To the extent that any amounts are on deposit in the Excess Funding
Account or the Pre-Funding Account on any Business Day, the Servicer shall apply
Transferor Interest Collections in an amount equal to the sum of the Negative
Carry Amount and the Principal Funding Investment Shortfall, if any, for such
Business Day and any prior Business Day in respect of which such amounts have
not been covered pursuant to this sentence in the manner specified for
application of Series Available Interest Collections in subsections 4.9(a)(i)
through (xiii).
(b) To the extent that on any Business Day payments are being made
pursuant to any of subsections 4.9(a)(i) through (xiii), respectively, and the
full
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amount to be paid pursuant to any such subsection receiving payments on such
Business Day is not paid in full on such Business Day, the Servicer shall apply
all or a portion of the Excess Interest Collections from other Series with
respect to such Business Day allocable to the Series 1998-1 Certificates in an
amount equal to the excess of the full amount to be allocated or paid pursuant
to the applicable subsection over the amount applied with respect thereto from
Series Available Interest Collections and Transferor Interest Collections
(pursuant to subsection 4.10(a)) on such Business Day (the "Required Amount").
Excess Interest Collections allocated to the Series 1998-1 Certificates for any
Business Day shall mean an amount equal to the product of (x)Excess Interest
Collections available from all other Series for such Business Day for the prior
Monthly Period and (y)a fraction, the numerator of which is the Required Amount
for such Business Day and the denominator of which is the aggregate amount of
shortfalls in required amounts or other amounts to be paid from Interest
Collections for all Series for such Business Day.
Section 4.11 PAYMENT OF CERTIFICATE INTEREST. On each Transfer Date,
the Trustee, acting in accordance with instructions from the Servicer set forth
in the Daily Report for such day, shall withdraw the amount on deposit in the
Interest Funding Account with respect to the prior Monthly Period allocable to
the Series1998-1 Certificates and deposit such amount in the Distribution
Account. On each Distribution Date, the Paying Agent shall pay in accordance
with Section 5.1 of the Agreement to (w)the Class A Certificateholders from the
Distribution Account such amount deposited into the Distribution Account on the
related Transfer Date allocable thereto pursuant to subsection 4.9(a)(i), (x)the
Class B Certificateholders from the Distribution Account the amount deposited
into the Distribution Account allocable thereto pursuant to subsections
4.9(a)(ii) and (vii), (y) the Class C Certificateholders from the Distribution
Account the amount deposited into the Distribution Account pursuant to
subsection 4.9(a)(xi), and (z) the Class D Certificateholders from the
Distribution Account the amount deposited into the Distribution Account pursuant
to subsection 4.9(a)(xii).
Section 4.12 PAYMENT OF CERTIFICATE PRINCIPAL.
(a) On the Transfer Date preceding the Class A Scheduled Payment Date
with respect to the Controlled Accumulation Period or each Distribution Date
with respect to the Early Amortization Period, the Trustee, acting in accordance
with instructions from the Servicer set forth in the Daily Report for such day,
shall withdraw from the Principal Account and deposit in the Distribution
Account, to the extent of funds available, an amount equal to the Class A
Principal for such Distribution Date. On the Class A Scheduled Payment Date (or,
if applicable, such Distribution Date in respect of the Early Amortization
Period), the Paying Agent shall pay in accordance with Section5.1 to the Class A
Certificateholders from the Distribution Account such amount deposited into the
Distribution Account on the related Transfer Date.
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(b) On the Transfer Date preceding the Class B Principal Payment
Commencement Date and each Distribution Date thereafter, the Trustee, acting in
accordance with instructions from the Servicer set forth in the Daily Report for
such day, shall withdraw from the Principal Account and deposit in the
Distribution Account, to the extent of funds available, an amount equal to the
Class B Principal for such Distribution Date. On the Class B Principal
Commencement Date, after the payment of any principal amounts to the Class A
Certificates on such day, and on each Distribution Date thereafter until the
Class B Invested Amount is paid in full, the Paying Agent shall pay in
accordance with Section 5.1 to the Class B Certificateholders from the
Distribution Account such amount deposited into the Distribution Account on the
related Transfer Date.
(c) On the Transfer Date preceding the Class C Principal Commencement
Date and each Distribution Date thereafter, the Trustee, acting in accordance
with instructions from the Servicer set forth in the Daily Report for such day,
shall withdraw from the Principal Account and deposit in the Distribution
Account an amount equal to the lesser of the Class C Invested Amount and the
amount on deposit in the Principal Account allocable to the Series 1998-1
Certificates (after giving effect to transfers pursuant to subsection 4.12(a)
and (b)). On the Class C Principal Commencement Date, after the payment of any
principal amounts to the Class B Certificates on such day, and on each
Distribution Date thereafter until the Class C Invested Amount is paid in full,
the Paying Agent shall pay in accordance with Section 5.1 to the Class C
Certificateholders from the Distribution Account such amount deposited into the
Distribution Account on the related Transfer Date.
(d) On the Transfer Date preceding the Class D Principal
Commencement Date and each Business Day thereafter, the Trustee, acting in
accordance with instructions from the Servicer set forth in the Daily Report for
such day, shall make payments of principal to the Class D Certificateholders in
accordance with subsection 4.9(c)(iv) of the Agreement.
Any amounts remaining in the Principal Account and allocable to the
Series 1998-1 Certificates, after the Class D Invested Amount has been paid in
full, will be treated as Shared Principal Collections and applied in accordance
with Section 4.3(e) of the Agreement.
Section 4.13 INVESTOR CHARGE-OFF.
(a) If, on any Determination Date, the aggregate Investor Default
Amount, if any, for each Business Day in the preceding Monthly Period exceeded
the Series Available Interest Collections applied to the payment thereof
pursuant to subsections 4.9(a)(iv) and (v) of the Agreement and the amount of
Transferor Interest Collections and Excess Interest Collections allocated
thereto pursuant to Section 4.10 of the Agreement, and the amount of Reallocated
Principal Collections applied with respect thereto pursuant to Section 4.14 of
the Agreement, the Class D Invested Amount will be reduced by the amount by
which the remaining aggregate
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Investor Default Amount exceeds the amount applied with respect thereto during
such preceding Monthly Period (a "Class D Investor Charge-Off").
(b) In the event that any such reduction of the Class D Invested Amount
would cause the Class D Invested Amount to be a negative number, the Class D
Invested Amount will be reduced to zero, and the Class C Invested Amount will be
reduced by the amount by which the Class D Invested Amount would have been
reduced below zero, but not more than the aggregate Investor Default Amount for
such Monthly Period (a "Class C Investor Charge-Off").
(c) In the event that any such reduction of the Class C Invested Amount
would cause the Class C Invested Amount to be a negative number, the Class C
Invested Amount will be reduced to zero, and the Class B Invested Amount will be
reduced by the amount by which the Class C Invested Amount would have been
reduced below zero, but not more than the remaining aggregate Investor Default
Amount for such Monthly Period (a "Class B Investor Charge-Off").
(d) In the event that any such reduction of the Class B Invested Amount
would cause the Class B Invested Amount to be a negative number, the Class B
Invested Amount will be reduced to zero, and the Class A Invested Amount will be
reduced by the amount by which the Class B Invested Amount would have been
reduced below zero, but not more than the remaining aggregate Investor Default
Amount for such Monthly Period (a "Class A Investor Charge-Off").
Section 4.14 REALLOCATED PRINCIPAL COLLECTIONS FOR THE SERIES 1998-1
CERTIFICATES.
(a) On each Business Day, the Servicer will determine the amount equal
to the lesser of (i)the Class D Invested Amount, (ii)the product of (x)(I)during
the Revolving Period, the Class D Floating Allocation Percentage or (II)during
the Controlled Accumulation Period or Early Amortization Period, the Class D
Fixed/Floating Allocation Percentage and (y)the amount of Principal Collections
with respect to such Business Day and (iii)an amount equal to the sum of (a)the
remaining Class A Required Amount, if any, with respect to the prior Monthly
Period, (b) the remaining Class B Required Amount, if any, with respect to the
prior Monthly Period and (c)the remaining Class C Required Amount, if any, with
respect to the prior Monthly Period (such amount called "Reallocated Class D
Principal Collections") and shall apply Principal Collections in an amount equal
to such amount first to the components of the Class A Required Amount, then to
the components of the Class B Required Amount and then to the components of the
Class C Required Amount in the same priority as amounts are applied to such
components from Series Available Interest Collections pursuant to subsection
4.9(a).
(b) On each Business Day, the Servicer will determine the amount equal
to the lesser of (i)the Class C Invested Amount, (ii)the product of (x)(I)during
the Revolving Period, the Class C Floating Allocation Percentage or (II)during
the
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Controlled Accumulation Period or Early Amortization Period, the Class C
Fixed/Floating Allocation Percentage and (y)the amount of Principal Collections
for such Business Day and (iii)an amount equal to the sum of (a)the remaining
Class A Required Amount, if any, with respect to the prior Monthly Period over
the amount of Reallocated Class D Principal Collections applied with respect
thereto for such prior Monthly Period and (b)the remaining Class B Required
Amount, if any, with respect to the prior Monthly Period over the amount of
Reallocated Class D Principal Collections applied with respect thereto for such
prior Monthly Period (such amount called "Reallocated Class C Principal
Collections") and shall apply Principal Collections in an amount equal to such
amount first to the remaining components of the Class A Required Amount and then
to the remaining components of the Class B Required Amount in the same priority
as amounts are applied to such components from Series Available Interest
Collections pursuant to subsection 4.9(a).
(c) On each Business Day, the Servicer will determine the amount equal
to the lesser of (i)the Class B Invested Amount, (ii)the product of (x)(I)during
the Revolving Period, the Class B Floating Allocation Percentage or (II)during
the Controlled Accumulation Period or Early Amortization Period, the Class B
Fixed/Floating Allocation Percentage and (y)the amount of Principal Collections
for such Business Day and (iii)an amount equal to the excess, if any, of the
remaining Class A Required Amount, if any, with respect to the prior Monthly
Period over the sum of the amount of Reallocated Class D Principal Collections
and Reallocated Class C Principal Collections applied with respect thereto for
the prior Monthly Period (such amount called "Reallocated Class B Principal
Collections") and shall apply Principal Collections equal to such amount to the
remaining components of the Class A Required Amount in the same priority as
amounts are applied to such components from Series Available Interest
Collections pursuant to subsection 4.9(a).
Section 4.15 DETERMINATION OF LIBOR.
(a) On each LIBOR Determination Date, the Trustee shall determine LIBOR
on the basis of the rate for deposits in United States dollars for a period
equal to the relevant Interest Accrual Period which appears on Telerate Page
3750 as of 11:00 a.m., London time, on such date. If such rate does not appear
on Telerate Page 3750, the rate for the LIBOR Determination Date shall be
determined on the basis of the rates at which deposits in United States dollars
are offered by the Reference Banks at approximately 11:00 a.m., London time, on
that day to prime banks in the London interbank market for a period equal to the
relevant Interest Accrual Period. The Trustee shall request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If at
least two such quotations are provided, the rate for that LIBOR Determination
Date shall be the arithmetic mean of the quotations (rounded upward to the
nearest 0.015625%). If fewer than two quotations are provided as requested, the
rate for that LIBOR Determination Date will be the arithmetic mean (rounded
upward to the nearest 0.015625%) of the rates quoted by major banks in New York
City, selected by the Servicer, at approximately 11:00 a.m., New York
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City time, on that day for loans in United States dollars to leading European
banks for a period equal to the relevant Interest Accrual Period; PROVIDED,
HOWEVER, that if the Trustee is unable to determine a rate in accordance with
one of the procedures described above, LIBOR shall be LIBOR as determined on the
most recent LIBOR Determination Date.
(b) The Class A Certificate Rate, the Class B Certificate Rate, the
Class C Certificate Rate and the Class D Certificate Rate applicable to the then
current and the immediately preceding Interest Accrual Periods may be obtained
by any Series 1998-1 Certificateholder by telephoning the Trustee at its
Corporate Trust Office at (612)667-4959.
(c) On each LIBOR Determination Date, the Trustee shall send to the
Servicer by facsimile notification of LIBOR for the following Interest Accrual
Period. Following the listing of the Class A Certificates and the Class B
Certificates on the Luxembourg Stock Exchange and for so long as such
Certificates are so listed, the Trustee shall cause the Class A Certificate Rate
and the Class B Certificate Rate as well as the amount of Class A Monthly
Interest and Class B Monthly Interest applicable to an Interest Accrual Period
and the length of such Interest Accrual Period (i) to be published in the
Luxemburger Wort, and (ii) to be provided to the Luxembourg Stock Exchange, in
each case as soon as possible after its determination but in no event later than
the first day of such Interest Accrual Period.
Section 4.16 DETERMINATION OF ACCUMULATION PERIOD LENGTH. On the
Distribution Date in October 2000, the Servicer shall determine the Accumulation
Period Length, the Accumulation Period Commencement Date and the Controlled
Accumulation Amount.
Section 4.17 PRE-FUNDING ACCOUNT.
(a) ESTABLISHMENT OF THE PRE-FUNDING ACCOUNT. The Transferor hereby
directs the Servicer, for the benefit of the Series 1998-1 Certificateholders,
to establish and maintain or cause to be established and maintained in the name
of the Trustee, on behalf of the Series 1998-1 Certificateholders, with a
Qualified Institution (which initially shall be Norwest Bank Minneapolis,
National Association) a segregated trust account (the "Pre-Funding Account"),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Series 1998-1 Certificateholders. The Transferor
does hereby transfer, assign, set over and otherwise convey to the Trust for the
benefit of the Series 1998-1 Certificateholders, without recourse, all of its
right, title and interest in, to and under the Pre-Funding Account, any Cash
Equivalent on deposit therein and any proceeds of the foregoing, including the
investment earnings. The Pre-Funding Account shall be under the sole dominion
and control of the Trustee for the benefit of the Series 1998-1
Certificateholders. If, at any time, the institution holding the Pre-Funding
Account ceases to be a Qualified Institution, the Transferor shall direct the
Servicer to establish within 10 Business Days a new Pre-Funding Account meeting
the conditions specified above with a Qualified Institution, transfer any cash
and/or any investments to such new Pre-Funding Account and from the date such
new Pre-Funding Account is established, it shall be the "Pre-Funding Account."
In addition,
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after five days' notice to the Trustee, the Transferor may direct the Servicer
to establish a new Pre-Funding Account meeting the conditions specified above
with a different Qualified Institution, transfer any cash and/or investments to
such new Pre-Funding Account and from the date such new Pre-Funding Account is
established, it shall be, for the Series 1998-1 Certificates, the "Pre-Funding
Account." Pursuant to the authority granted to the Servicer in subsection 3.1(b)
of the Agreement, the Servicer shall have the power, revocable by the Trustee,
to make withdrawals and payments or to instruct the Trustee to make withdrawals
and payments from the Pre-Funding Account for the purposes of carrying out the
Servicer's or Trustee's duties hereunder.
(b) ADMINISTRATION OF PRE-FUNDING ACCOUNT. The Transferor shall on the
Series 1998-1 Issuance Date deposit in the Pre-Funding Account the Initial
Pre-Funded Amount. On the Business Day preceding each Transfer Date, the
Servicer shall withdraw from the Pre-Funding Account and deposit in the
Collection Account all interest and other investment income on the Pre-Funded
Amount. Interest (including reinvested interest) and other investment income on
funds on deposit in the Pre-Funding Account shall not be considered part of the
Pre-Funded Amount for purposes of this Agreement. Funds on deposit in the
Pre-Funding Account shall be withdrawn by the Servicer and paid to the
Transferor to the extent of any increases in the Invested Amount pursuant to
Section 4.18 of the Agreement. Following the occurrence of a Pay Out Event
during the Funding Period, the remaining Pre-Funded Amount will be applied to
make principal payments with respect to the Certificates in accordance with
subsection 4.9(c) of the Agreement. The Servicer shall withdraw the remaining
Pre-Funded Amount, if any, on deposit in the Pre-Funding Account on the first
Business Day of the October 1998 Monthly Period and deposit such amount into the
Excess Funding Account.
(c) INVESTMENT ON FUNDS IN PRE-FUNDING ACCOUNT. Funds on deposit in the
Pre-Funding Account shall be invested in Cash Equivalents by the Trustee (or, at
the direction of the Trustee, by the Servicer on behalf of the Trustee) at the
direction of the Servicer. Funds on deposit in the Pre-Funding Account on any
Distribution Date, after giving effect to any withdrawals from the Pre-Funding
Account, shall be invested in Cash Equivalents that will mature so that such
funds will be available for withdrawal on or prior to the following Transfer
Date. The proceeds of any such investments shall be invested in Cash Equivalents
that will mature so that such funds will be available for withdrawal on or prior
to the following Transfer Date.
Section 4.18 INCREASES IN INVESTED AMOUNT. The Transferor may at any
time during the Funding Period determine to increase the Invested Amount up to
the Full Invested Amount to the extent there are sufficient Principal
Receivables in the Trust to permit such increase in the Invested Amount without
causing a Pay Out Event to occur with respect to any outstanding Series. Upon
determining to increase the Invested Amount pursuant to this Section 4.18, the
Transferor shall deliver to the Servicer, the Trustee and each Rating Agency an
Officers' Certificate specifying the amount of the increase in the Invested
Amount the Transferor has
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determined to make and certifying that no Pay Out Event with respect to any
outstanding Series will occur as a result of or in connection with such increase
in the Invested Amount. Upon receipt of such Officer's Certificate by the
Trustee, the Class A Invested Amount, the Class B Invested Amount and the Class
C Invested Amount shall be increased pro rata by the amount specified in such
Officers' Certificate, whereupon the Trustee shall instruct the Servicer to
withdraw from the Pre-Funding Account and pay to the Transferor an amount equal
to the amount of such increase in the Class A Invested Amount, the Class B
Invested Amount and the Class C Invested Amount.
Upon the withdrawal of the remaining Pre-Funded Amount, if any, on
deposit in the Pre-Funding Account on the first Business Day of the October 1998
Monthly Period and the deposit of such amount in the Excess Funding Account, the
Class A Invested Amount, the Class B Invested Amount and the Class C Invested
Amount shall be increased pro rata by such amount.
SECTION 7. ARTICLE V OF THE AGREEMENT. Article V of the Agreement shall
read in its entirety as follows and shall be applicable only to the Series
1998-1 Certificates:
ARTICLE V
DISTRIBUTIONS AND REPORTS TO INVESTOR
CERTIFICATEHOLDERS
Section 5.1 DISTRIBUTIONS.
(a) On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Settlement Statement delivered by the Servicer to the
Trustee and the Paying Agent pursuant to subsection 3.4(c)) to each Class A
Certificateholder of record on the preceding Record Date (other than as provided
in subsection 2.4(e) or in Section 12.3 respecting a final distribution) such
Certificateholder's Pro Rata share (based on the aggregate Undivided Interests
represented by Class A Certificates held by such Certificateholder) of amounts
on deposit in the Distribution Account as are payable to the Class A
Certificateholders pursuant to Sections 4.11 and 4.12 of the Agreement by check
mailed to each Class A Certificateholder at such Certificate-holder's address as
it appears on the Certificate Register or, in the case of Class A
Certificateholders holding Class A Certificates evidencing Undivided Interests
aggregating not less than 80% of the Class A Invested Amount, by wire transfer,
at the expense of such Class A Certificateholder, to an account or accounts
designated by such Class A Certificateholder by written notice given to the
Paying Agent not less than five days prior to the related Distribution Date;
PROVIDED, HOWEVER, that the final payment in retirement of the Class A
Certificates will be made only upon presentation and surrender of the Class A
Certificates at the office or offices specified in the notice of such final
distribution delivered by the Trustee pursuant to Section 12.3.
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(b) On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Settlement Statement delivered by the Servicer to the
Trustee and the Paying Agent pursuant to subsection 3.4(c)) to each Class B
Certificateholder of record on the preceding Record Date (other than as provided
in subsection 2.4(e) or in Section 12.3 respecting a final distribution) such
Certificateholder's PRO RATA share (based on the aggregate Undivided Interests
represented by Class B Certificates held by such Certificateholder) of amounts
on deposit in the Distribution Account as are payable to the Class B
Certificateholders pursuant to Sections 4.11 and 4.12 of the Agreement by check
mailed to each Class B Certificateholder at such Certificate-holder's address as
it appears on the Certificate Register or, in the case of Class B
Certificateholders holding Class B Certificates evidencing Undivided Interest
aggregating not less than 80% of the Class B Invested Amount, by wire transfer,
at the expense of such Class B Certificateholder, to an account or accounts
designated by such Class B Certificateholder by written notice given to the
Paying Agent not less than five days prior to the related Distribution Date;
PROVIDED, HOWEVER, that the final payment in retirement of the Class B
Certificates will be made only upon presentation and surrender of the Class B
Certificates at the office or offices specified in the notice of such final
distribution delivered by the Trustee pursuant to Section 12.3.
(c) On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Settlement Statement delivered by the Servicer to the
Trustee and the Paying Agent pursuant to subsection 3.4(c)) to each Class C
Certificateholder of record on the preceding Record Date (other than as provided
in subsection 2.4(e) or in Section 12.3 respecting a final distribution) such
Certificateholder's PRO RATA share (based on the aggregate Undivided Interests
represented by Class C Certificates held by such Certificateholder) of amounts
on deposit in the Distribution Account as are payable to the Class C
Certificateholders pursuant to Sections 4.11 and 4.12 of the Agreement by wire
transfer to each Class C Certificateholder to an account or accounts designated
by such Class C Certificateholder by written notice given to the Paying Agent
not less than five days prior to the related Distribution Date; PROVIDED,
HOWEVER, that the final payment in retirement of the Class C Certificates will
be made only upon presentation and surrender of the Class C Certificates at the
office or offices specified in the notice of such final distribution delivered
by the Trustee pursuant to Section 12.3.
(d) On each Distribution Date, the Paying Agent shall distribute (in
accordance with the Settlement Statement delivered by the Servicer to the
Trustee and the Paying Agent pursuant to subsection 3.4(c)) to each Class D
Certificateholder of record on the preceding Record Date (other than as provided
in subsection 2.4(e) or in Section 12.3 respecting a final distribution) such
Certificateholder's PRO RATA share (based on the aggregate Undivided Interests
represented by Class D Certificates held by such Certificateholder) of amounts
on deposit in the Distribution Account as are payable to the Class D
Certificateholders pursuant to Sections 4.11 and 4.12 of the Agreement by wire
transfer to each Class D Certificateholder to an account or accounts designated
by such Class D Certificateholder by written notice given to the
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Paying Agent not less than five days prior to the related Distribution Date;
PROVIDED, HOWEVER, that the final payment in retirement of the Class D
Certificates will be made only upon presentation and surrender of the Class D
Certificates at the office or offices specified in the notice of such final
distribution delivered by the Trustee pursuant to Section 12.3.
Section 5.2 CERTIFICATEHOLDERS' STATEMENT.
(a) On the 15th day of each calendar month (or if such day is not a
Business Day the next succeeding Business Day), the Paying Agent shall forward
to each Certificateholder and the Rating Agencies a statement substantially in
the form of Exhibit C prepared by the Servicer and delivered to the Trustee and
the Paying Agent on the preceding Determination Date setting forth the following
information (which, in the case of (i), (ii) and (iii) below, shall be stated on
the basis of an original principal amount of $1,000 per Certificate and, in the
case of (ix) and (x), shall be stated on an aggregate basis and on the basis of
an original principal amount of $1,000 per Certificate):
(i) the total amount distributed;
(ii) the amount of such distribution allocable to Certificate
Principal;
(iii) the amount of such distribution allocable to Certificate
Interest;
(iv) the amount of Principal Collections processed during the
related Monthly Period and allocated in respect of the Class A
Certificates, the Class B Certificates, the Class C Certificates and
the Class D Certificates, respectively;
(v) the amount of Interest Collections processed during the
related Monthly Period and allocated in respect of the Class A
Certificates, the Class B Certificates, the Class C Certificates and
the Class D Certificates, respectively;
(vi) the aggregate amount of Principal Receivables, the
Invested Amount, the Class A Invested Amount, the Class B Invested
Amount, the Class C Invested Amount, the Class D Invested Amount, the
Floating Allocation Percentage and, during the Controlled Accumulation
Period or Early Amortization Period, the ABC Fixed/Floating Allocation
Percentage, with respect to the Principal Receivables in the Trust as
of the close of business on the Record Date;
(vii) the aggregate outstanding balance of Receivables which
are current, and those between (i)30 and 59 days (ii)60 and 89 days and
(iii)90 days or more delinquent, in each case, as of the end of the day
on the Record Date;
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(viii) the aggregate Investor Default Amount for the related
Monthly Period;
(ix) the aggregate amount of Class A Investor Charge-Offs,
Class B Investor Charge-Offs, Class C Investor Charge-Offs and Class D
Investor Charge-Offs for the preceding Monthly Period;
(x) the amount of the Servicing Fee for the preceding Monthly
Period;
(xi) the Pre-Funded Amount, if any, and the aggregate amount
of funds in the Excess Funding Account as of the last day of the
Monthly Period immediately preceding the Distribution Date;
(xii) the Monthly Payment Rate and the average daily aggregate
Receivables balance (without deducting therefrom the discount portion,
if any) for the related Monthly Period; and
(xiii) each Overconcentration Amount and the Class D
Incremental Invested Amount.
If the Class A Certificates or the Class B Certificates are listed on the
Luxembourg Stock Exchange, the Trustee will publish or cause to be published
following each Determination Date in the Luxemburger Wort a notice to the effect
that the reports described above will be available for review at the main office
of the Listing Agent of the Trust in Luxembourg.
(b) ANNUAL CERTIFICATEHOLDERS' TAX STATEMENT. On or before March31 of
each calendar year, beginning with calendar year 1999, the Paying Agent shall
distribute to each Person who at any time during the preceding calendar year was
a Series 1998-1 Certificateholder, a statement prepared by the Servicer
containing the information required to be contained in the regular report to
Series 1998-1 Certificateholders, as set forth in subclauses (i), (ii) and (iii)
above, aggregated for such calendar year or the applicable portion thereof
during which such Person was a Series 1998-1 Certificateholder, together with,
on or before January31 of each year, beginning in 1999, such other customary
information (consistent with the treatment of the Certificates as debt) as the
Trustee or the Servicer deems necessary or desirable to enable the Series 1998-1
Certificateholders to prepare their tax returns. Such obligations of the Trustee
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Trustee pursuant to any
requirements of the Internal Revenue Code as from time to time in effect.
SECTION 8. SERIES 1998-1 PAY OUT EVENTS. The occurrence of any of the
following events shall, immediately upon the occurrence thereof without notice
or other action on the part of the Trustee or the Series 1998-1
Certificateholders, be deemed to be a Pay Out Event solely with respect to
Series 1998-1:
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(a) on any Determination Date, the average of the Monthly Payment Rates
for the three preceding Monthly Periods, where the Monthly Payment Rate for a
Monthly Period is the percentage obtained by dividing the aggregate of the
Receivables balance (without deducting therefrom any discount portion) collected
during such Monthly Period by the average daily aggregate Receivables balance
(without deducting therefrom any discount portion) for such Monthly Period, is
less than 18%;
(b) the failure to pay the outstanding principal amount of the Class A
or Class B Certificates by the Class A Scheduled Payment Date or the Class B
Scheduled Payment Date, as applicable;
(c) the ratio (expressed as a percentage) of (i)the average for each
month of the net losses on the Receivables (exclusive of the Ineligible
Receivables) owned by the Trust (i.e., gross losses less recoveries on any
Receivables (including, without limitation, recoveries from collateral security
in addition to recoveries from the products, recoveries from manufacturers and
insurance proceeds)) during any three consecutive calendar months to (ii)the
average of the month-end aggregate balances of such Receivables (without
deducting therefrom the discount portion) for such three-month period, exceeds
5% on an annualized basis;
(d) the sum of all Cash Equivalents and other amounts on deposit in the
Excess Funding Account represents more than 50% of the sum of the aggregate
amount of Principal Receivables (without deducting therefrom any discount
portion) for each of six or more consecutive Determination Dates, after giving
effect to all payments made or to be made on the Distribution Date next
succeeding each such respective Determination Date; or
(e) if Principal Collections allocable to the Class D
Certificateholders' Interest have been reallocated in any Monthly Period to
cover any Required Amounts and have not been reimbursed as of the Determination
Date in such Monthly Period.
SECTION 9. SERIES 1998-1 TERMINATION. The right of the Series 1998-1
Certificateholders to receive payments from the Trust will terminate on the
first Business Day following the Series 1998-1 Termination Date unless such
Series is an Affected Series as specified in subsection 12.1(c) of the Agreement
and the sale contemplated therein has not occurred by such date, in which event
the Series1998-1 Certificateholders shall remain entitled to receive proceeds of
such sale when such sale occurs.
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SECTION 10. LEGENDS; TRANSFER AND EXCHANGE; RESTRICTIONS ON TRANSFER OF
SERIES1998-1 CERTIFICATES; TAX TREATMENT.
(a) Each Class A Certificate, Class B Certificate and Class D
Certificate will bear a legend substantially in the following form:
EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF
GREEN TREE FLOORPLAN FUNDING CORP. THAT, UNLESS SUCH PURCHASER, AT ITS
EXPENSE, DELIVERS TO THE TRUSTEE, THE SERVICER AND THE TRANSFEROR AN
OPINION OF COUNSEL SATISFACTORY TO THEM TO THE EFFECT THAT THE PURCHASE
OR HOLDING OF A SERIES 1998-1 CERTIFICATE BY SUCH PURCHASER WILL NOT
RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "ASSETS OF THE
BENEFIT PLAN" AND SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA AND THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE TRANSFEROR OR
THE SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE
POOLING AND SERVICING AGREEMENT, SUCH PURCHASER IS NOT (I)AN EMPLOYEE
BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS SUBJECT TO
THE PROVISIONS OF TITLE I OF ERISA, (II)A PLAN DESCRIBED IN SECTION
4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (III)AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A
PLAN'S INVESTMENT IN THE ENTITY.
(b) Each Class C Certificate will bear a legend substantially in the
following form:
THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS
CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS AND ONLY PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT TO AN INSTITUTIONAL INVESTOR THAT THE HOLDER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
144A ("QIB") PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE
ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE
REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, OR TO THE TRANSFEROR. EACH CERTIFICATE OWNER BY ACCEPTING A
BENEFICIAL INTEREST IN THIS CERTIFICATE IS DEEMED TO REPRESENT THAT IT
IS A QIB
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PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
ANOTHER QIB.
THIS CERTIFICATE MAY NOT BE ACQUIRED, SOLD, TRADED OR
TRANSFERRED, NOR MAY AN INTEREST IN THIS CERTIFICATE BE MARKETED, ON OR
THROUGH AN "ESTABLISHED SECURITIES MARKET" WITHIN THE MEANING OF
SECTION 7740(b)(1) OF THE CODE AND ANY PROPOSED, TEMPORARY OR FINAL
TREASURY REGULATION THEREUNDER, INCLUDING, WITHOUT LIMITATION, AN
OVER-THE-COUNTER-MARKET OR ANY INTERDEALER QUOTATION SYSTEM THAT
REGULARLY DISSEMINATES FIRM BUY OR SELL QUOTATIONS.
EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF
GREEN TREE FLOORPLAN FUNDING CORP. THAT, UNLESS SUCH PURCHASER, AT ITS
EXPENSE, DELIVERS TO THE TRUSTEE, THE SERVICER AND THE TRANSFEROR AN
OPINION OF COUNSEL SATISFACTORY TO THEM TO THE EFFECT THAT THE PURCHASE
OR HOLDING OF A Class C CERTIFICATE BY SUCH PURCHASER WILL NOT RESULT
IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "ASSETS OF THE BENEFIT
PLAN" AND SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF ERISA AND
THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE TRANSFEROR OR THE
SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE
POOLING AND SERVICING AGREEMENT, SUCH PURCHASER EITHER (A) IS NOT (I)AN
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS
SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II)A PLAN DESCRIBED IN
SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR
(III)AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF
A PLAN'S INVESTMENT IN THE ENTITY, INCLUDING, WITHOUT LIMITATION, AN
INSURANCE COMPANY GENERAL ACCOUNT OR (B)IS AN INSURANCE COMPANY ACTING
ON BEHALF OF ITS GENERAL ACCOUNT AND (I) ON THE DATE IT ACQUIRES THE
CERTIFICATES, LESS THAN 25% OF THE ASSETS OF SUCH GENERAL ACCOUNT (AS
REASONABLY DETERMINED BY SUCH INSURANCE COMPANY) CONSTITUTE PLAN ASSETS
FOR PURPOSES OF TITLE I OF ERISA AND SECTION 4975 OF THE CODE, AND (II)
IF, AFTER THE INITIAL ACQUISITION OF THE CERTIFICATES, AT ANY TIME
DURING ANY CALENDAR QUARTER 25% OR MORE OF THE ASSETS OF SUCH GENERAL
ACCOUNT (AS REASONABLY DETERMINED BY SUCH INSURANCE COMPANY NO LESS
FREQUENTLY THAN EACH CALENDAR QUARTER) CONSTITUTE PLAN ASSETS FOR
PURPOSES OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE AND NO
EXEMPTION OR EXCEPTION FROM THE PROHIBITED TRANSACTION RULES APPLIES
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TO THE CONTINUED HOLDING OF THE CERTIFICATES UNDER SECTION 401(c) OF
ERISA AND THE FINAL REGULATIONS THEREUNDER OR UNDER AN EXEMPTION OR
REGULATION ISSUED BY THE UNITED STATES DEPARTMENT OF LABOR UNDER ERISA,
THEN SUCH INSURANCE COMPANY AGREES TO DISPOSE OF ALL OF THE
CERTIFICATES THEN HELD IN ITS GENERAL ACCOUNT BY THE END OF THE NEXT
FOLLOWING CALENDAR QUARTER.
(c) Each Class D Certificate will bear a legend substantially in the
following form:
THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OR ANY APPLICABLE STATE SECURITIES LAW OF ANY STATE AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED
PURSUANT TO OR EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT AND
ANY OTHER APPLICABLE SECURITIES LAW. GREEN TREE FLOORPLAN FUNDING CORP.
SHALL BE PROHIBITED FROM TRANSFERRING ANY INTEREST IN OR PORTION OF
THIS CERTIFICATE UNLESS, PRIOR TO SUCH TRANSFER, IT SHALL HAVE
DELIVERED TO THE TRUSTEE AN OPINION OF COUNSEL TO THE EFFECT THAT SUCH
PROPOSED TRANSFER WILL NOT ADVERSELY AFFECT THE FEDERAL OR MINNESOTA
INCOME TAX CHARACTERIZATION OF ANY OUTSTANDING SERIES OF INVESTOR
CERTIFICATES OR THE TAXABILITY (OR TAX CHARACTERIZATION) OF THE TRUST
UNDER FEDERAL OR MINNESOTA INCOME TAX LAWS. IN NO EVENT SHALL THE
TRANSFEROR BE PERMITTED TO TRANSFER ANY INTEREST IN OR PORTION OF THIS
CERTIFICATE IF, AFTER GIVING EFFECT TO SUCH PROPOSED TRANSFER, TAKING
INTO ACCOUNT THE CERTIFICATES WHOSE TRANSFER IS PROPOSED, MORE THAN 20%
(BY INVESTED AMOUNT AND BY VALUE) OF THE OUTSTANDING CERTIFICATES
ISSUED BY THE TRUST WITH RESPECT TO WHICH NO OPINION OF COUNSEL WAS
ISSUED THAT THE APPLICABLE Class WOULD BE TREATED AS DEBT FOR FEDERAL
INCOME TAX PURPOSES (INCLUDING THE EXCHANGEABLE TRANSFEROR CERTIFICATE
AND EACH TRANSFEROR RETAINED CLASS) WOULD NOT BE BENEFICIALLY OWNED BY
GREEN TREE FLOORPLAN FUNDING CORP.
(d) Green Tree Floorplan Funding Corp. shall be prohibited from
transferring any interest in or portion of the Class D Certificates unless,
prior to such transfer, it shall have delivered to the Trustee an Opinion of
Counsel to the effect that such proposed transfer will not adversely affect the
Federal or Minnesota income tax characterization of any outstanding Series of
Investor Certificates or the taxability (or tax characterization) of the Trust
under Federal or Minnesota income tax laws. In no event shall the Transferor be
permitted to transfer any interest in or portion of the Class D Certificates if,
after giving effect to such proposed transfer,
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taking into account the certificates whose transfer is proposed, more than 20%
(by Invested Amount and by value) of the outstanding certificates issued by the
Trust with respect to which no Opinion of Counsel was issued that the applicable
class would be treated as debt for federal income tax purposes (including the
Exchangeable Transferor Certificate and each Transferor Retained Class) would
not be beneficially owned by Green Tree Floorplan Funding Corp. In no event
shall any interest in or portion of the Class D Certificates be transferred to
Green Tree. As a condition to transfer of an interest in or portion of the Class
D Certificates, the transferee shall be required to agree not to institute
against, or join any other Person in instituting against, the Trust, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding,
or other proceeding under any federal or state bankruptcy or similar law, for
one year and one day after all Investor Certificates are paid in full. The
Transferor shall provide prompt written notice to the Rating Agencies of any
such transfer.
(e) No transfer of a Class A Certificate, Class B Certificate or
Class D Certificate will be permitted to be made to a Benefit Plan unless such
Benefit Plan, at its expense, delivers to the Trustee, the Servicer and the
Transferor an opinion of counsel satisfactory to them to the effect that the
purchase or holding of a Class A Certificate, Class B Certificate or Class D
Certificate by such Benefit Plan will not result in the assets of the Trust
being deemed to be "assets of the Benefit Plan" and subject to the prohibited
transaction provisions of ERISA and the Code and will not subject the Trustee,
the Transferor or the Servicer to any obligation in addition to those undertaken
in the Agreement. Unless such opinion is delivered, each person acquiring a
Class A Certificate, Class B Certificate or Class D Certificate or the
beneficial ownership of a Class A Certificate, Class B Certificate or Class D
Certificate will be deemed to represent to the Trustee, the Transferor and the
Servicer that it is not (i)an employee benefit plan (as defined in Section 3(3)
of ERISA) that is subject to the provisions of Title I of ERISA, (ii)a plan
described in Section 4975(e)(1) of the Code, or (iii)any entity whose underlying
assets include plan assets by reason of a plan's investment in the entity.
(f) The Transferor, the Trustee, the Servicer and each
Certificateholder each agrees that it will not make the election provided in
Treasury Regulation ss. 301.7701-3(c) to have the Trust Class ified as an
association taxable as a corporation.
SECTION 11. ADDITIONAL RESTRICTIONS ON TRANSFERS OF Class C
CERTIFICATES; WITHHOLDING REQUIREMENTS; TAX TREATMENT.
(a) No Class C Certificate or any interest therein may be sold
(including in the initial offering), conveyed, assigned, hypothecated, pledged,
participated, or otherwise transferred (each, a "TRANSFER") except in accordance
with this Section 11. Any Transfer of a Class C Certificate otherwise permitted
by this Section 11 will be permitted only if it consists of a pro rata
percentage interest in all payments made with respect to such Holder's Class C
Certificate and no Transfers of partial interests in a Class C Certificate shall
be permitted. No Class C Certificate or any interest
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therein may be Transferred to any Person (each, an "ASSIGNEE"), unless the
Assignee shall have executed and delivered the certification referred to in
subsection 11(e) below and each of the Transferor and the Servicer shall have
granted its prior consent thereto. Such consent shall be granted (assuming that
all other conditions specified in this Section 11 to such Transfer are
satisfied) unless the Transferor determines in its sole and absolute discretion
that such Transfer would create a risk that the Trust would be Class ified for
federal or any applicable state tax purposes as an association or publicly
traded partnership taxable as a corporation; PROVIDED, FURTHER, that any
attempted Transfer that would cause the number of Targeted Holders to exceed
ninety-nine shall be void; and PROVIDED, FURTHER, that there shall not at any
time be more than 5 Class C Certificateholders or such other number as may be
consented to by the Transferor, which consent may be withheld in its sole and
absolute discretion.
(b) Each initial purchaser of a Class C Certificate or any interest
therein and any Assignee thereof shall certify to the Transferor, the Servicer,
and the Trustee that it is either (A)(i) a citizen or resident of the U.S., (ii)
a corporation, partnership or other entity organized in or under the laws of the
U.S. or any political subdivision thereof which, if such entity is a tax-exempt
entity, recognizes that payments with respect to the Class C Certificates may
constitute unrelated business taxable income or (iii) a person not described in
(i) or (ii) whose ownership of the Class C Certificates is effectively connected
with the conduct of a trade or business within the United States within the
meaning of the Code) and whose ownership of any interest in a Class C
Certificate will not result in any withholding obligation with respect to any
payments with respect to the Class C Certificates by any person or (B) an estate
or trust the income of which is includible in gross income for U.S. federal
income tax purposes. Each initial purchaser of a Class C Certificate also shall
agree that (A) if it is a person described in clause (A)(i) or (A)(ii) above, it
will furnish to the person from whom it is acquiring a Class C Certificate, the
Servicer and the Trustee, a properly executed U.S. Internal Revenue Service Form
W-9 (and will agree to furnish a new Form W-9, or any successor applicable form,
upon the expiration or obsolescence of any previously delivered form) or (b) if
it is a person described in clause (A)(iii) above, it will furnish to the person
from whom it is acquiring a Class C Certificate, the Servicer and the Trustee, a
properly executed U.S. Internal Revenue Service Form 4224 (and will agree to
furnish a new Form 4224, or any successor applicable form, upon the expiration
or obsolescence of any previously delivered form and comparable statements in
accordance with applicable U.S. laws), and, in each case, such other
certifications, representations or opinions of counsel as may be requested by
the Transferor, the Servicer or the Trustee.
(c) Each initial purchaser of a Class C Certificate or any interest
therein and any Assignee thereof shall further certify to the Transferor, the
Servicer and the Trustee that it has neither acquired nor will it sell, trade or
transfer any interest in a Class C Certificate or cause an interest in a Class C
Certificate to be marketed on or through an "established securities market"
within the meaning of Section 7704(b)(1)
-50-
<PAGE>
of the Code and any treasury regulation thereunder, including, without
limitation, an over-the-counter-market or an interdealer quotation system that
regularly disseminates firm buy or sell quotations. In addition, each initial
purchaser of a Class C Certificate or any interest therein and any Assignee
shall certify, prior to any delivery or Transfer to it of a Class C Certificate
that it is not and will not become (unless otherwise consented to by the
Transferor in its sole discretion), for so long as it holds an interest in a
Class C Certificate, a partnership, Subchapter S corporation or grantor trust
for U.S. federal income tax purposes. If an initial purchaser of an interest in
a Class C Certificate or an Assignee cannot make the certification described in
the preceding sentence, the Transferor may, in its sole discretion, prohibit a
Transfer to such entity; PROVIDED, HOWEVER, that if the Transferor agrees to
permit such a Transfer, the Transferor, the Servicer or the Trustee may require
additional certifications in order to prevent the Trust from being treated as a
publicly traded partnership. Each initial purchaser of an interest in a Class C
Certificate and Assignee acknowledges that the Opinion of Counsel to the effect
that the Trust will not be treated as a publicly traded partnership taxable as a
corporation is dependent in part on the accuracy of the certifications described
in this subsection 11(c).
(d) Upon surrender for registration of transfer of a Class C
Certificate at the office of the Transfer Agent and Registrar, accompanied by a
letter of representations and certification from the prospective Class C
Certificateholder substantially in the form attached as Exhibit F and by a
written instrument of transfer in the form approved by the Transferor and the
Trustee (it being understood that, until notice to the contrary is given to
Class C Certificateholders, the Transferor and the Trustee shall each be deemed
to have approved the form of instrument of transfer, if any, printed on any
definitive Class C Certificate), executed by the registered owner, in person or
by such Class C Certificateholder's attorney thereunto duly authorized in
writing, such Class C Certificate shall be transferred upon the register, and
the Transferor shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee one or more new registered Class C
Certificates of any authorized denominations and of a like aggregate principal
amount and tenor. Transfers and exchanges of Class C Certificates shall be
subject to such restrictions as shall be set forth in this Series 1998-1
Supplement and the text of the Class C Certificates and such reasonable
regulations as may be prescribed by the Transferor. Successive registrations and
registrations of transfers as aforesaid may be made from time to time as
desired, and each such registration shall be noted on the register.
(e) No Class C Certificate or any interest therein may be Transferred
(including in the initial offering) to (a) an "employee benefit plan" (as
defined in Section 3(3) of ERISA), including governmental plans and church
plans, (b) any "plan" (as defined in Section 4975(e)(1) of the Code) including
individual retirement accounts and Keogh plans, or (c) any other entity whose
underlying assets include "plan assets" (within the meaning of Department of
Labor ("DOL") Regulation Section 2510.3-101, 29 C.F.R. ss. 2510.3-101 or
otherwise under ERISA) by reason of a plan's investment in the entity,
including, without limitation, an insurance
-51-
<PAGE>
company general account; PROVIDED, HOWEVER, that a Class C Certificate or an
interest therein may be Transferred to an insurance company acting on behalf of
its general account if (i) on the date such insurance company acquires the Class
C Certificates, less than 25% of the assets of such general account (as
reasonably determined by such insurance company) constitute "plan assets" for
purposes of Title I of ERISA and Section 4975 of the Code, and (ii) such
insurance company agrees that if, after the initial acquisition of the Class C
Certificates, at any time during any calendar quarter 25% or more of the assets
of such general account (as reasonably determined by such insurance company no
less frequently than each calendar quarter) constitute "plan assets" for
purposes of Title I of ERISA or Section 4975 of the Code and no exemption or
exception from the prohibited transaction rules applies to the continued holding
of the Class C Certificates under Section 401(c) of ERISA and the final
regulations thereunder or under an exemption or regulation issued by the DOL
under ERISA, then such insurance company will dispose of all of the Class C
Certificates then held in its general account by the end of the next following
calendar quarter; and PROVIDED, FURTHER, that the Assignee shall have executed
and delivered the certification referred to in subsection 11(d) above and each
of the Transferor and the Servicer shall have granted its prior written consent
thereto.
(f) Notwithstanding any other provision of the Agreement, the Trustee
and any Paying Agent shall comply with all Federal withholding requirements with
respect to payments to the Class C Certificateholders of interest, original
issue discount, or other amounts that the Trustee, any Paying Agent, the
Servicer or the Transferor reasonably believes are applicable under the Code.
The consent of the Class C Certificateholders shall not be required for any such
withholding. In the event the Trustee or the Paying Agent withholds any amount
from payments made to any Class C Certificateholder pursuant to federal
withholding requirements, the Trustee or the Paying Agent shall indicate to such
Class C Certificateholder the amount withheld and all such amounts shall be
deemed to have been paid to such Class C Certificateholders and the Class C
Certificateholders shall have no claim therefor.
(g) As described in Section 3.7 of the Agreement, it is the intention
of the parties hereto that the Class C Certificates be treated for tax purposes
as indebtedness. In the event that the Class C Certificates are not so treated,
it is the intention of the parties that the Class C Certificates to treated as
an interest in a partnership that owns the Receivables. In the event that the
Class C Certificates are treated as an interest in a partnership, it is the
intention of the parties that interest payable on the Class C Certificates be
treated as guaranteed payment and, if for any reason it is not so treated, that
the holders of the Class C Certificates be specially allocated gross interest
income equal to the interest accrued during each Interest Accrual Period on the
Class C Certificates.
-52-
<PAGE>
SECTION 12. RATIFICATION OF AGREEMENT.
(a) As supplemented by this Series Supplement, the Agreement is in all
respects ratified and confirmed and the Agreement as so supplemented by this
Series Supplement shall be read, taken, and construed as one and the same
instrument.
(b) For so long as any of the Class C Certificates are outstanding,
each of the Transferor, the Servicer and the Trustee agree to cooperate with
each other to provide to any Class C Certificateholders and to any prospective
purchaser of Class C Certificates designated by such a Class C Certificateholder
upon the request of such Class C Certificateholder or prospective purchaser, any
information required to be provided to such holder or prospective purchaser to
satisfy the condition set forth in Rule 144A(d)(4) under the Securities Act.
SECTION 13. COUNTERPARTS. This Series Supplement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.
SECTION 14. GOVERNING LAW. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
SECTION 15. INSTRUCTIONS IN WRITING. All instructions or other
communications given by the Servicer or any other person to the Trustee pursuant
to this Series Supplement shall be in writing, and, with respect to the
Servicer, may be included in a Daily Report or Settlement Statement.
-53-
<PAGE>
IN WITNESS WHEREOF, the Transferor, the Servicer and the Trustee have
caused this Series 1998-1 Supplement to be duly executed by their respective
officers as of the day and year first above written.
GREEN TREE FLOORPLAN
FUNDING CORP., Transferor
By:
------------------------------------------
Name: Phyllis A. Knight
Title: Senior Vice President and Treasurer
GREEN TREE FINANCIAL
CORPORATION, Servicer
By:
------------------------------------------
Name: Joel H. Gottesman
Title: Senior Vice President and
Secretary
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, Trustee
By:
------------------------------------------
Name:
Title:
-54-
<PAGE>
Exhibit A
FORM OF CLASS A INVESTOR CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF GREEN TREE
FLOORPLAN FUNDING CORP. THAT UNLESS SUCH PURCHASER, AT ITS EXPENSE, DELIVERS TO
THE TRUSTEE, THE SERVICER AND THE TRANSFEROR AN OPINION OF COUNSEL SATISFACTORY
TO THEM TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE BY SUCH
PURCHASER WILL NOT RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "ASSETS
OF THE BENEFIT PLAN" OR SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA AND THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE TRANSFEROR OR THE
SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AND
SERVICING AGREEMENT, SUCH PURCHASER IS NOT (I)AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA,
(II)A PLAN DESCRIBED IN SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED, OR (III)AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY
REASON OF A PLAN'S INVESTMENT IN THE ENTITY.
No. R-1 $400,400,000
GREEN TREE FLOORPLAN RECEIVABLES MASTER TRUST
FLOATING RATE FLOORPLAN RECEIVABLE TRUST
CERTIFICATE, SERIES 1998-1, CLASS A
Evidencing an undivided interest in a trust, the corpus of which
consists of receivables generated from time to time in the ordinary course of
business from the portfolio of revolving financing arrangements (the "Accounts")
of Green Tree
A-1
<PAGE>
Financial Corporation ("Green Tree" or the "Servicer") and other assets and
interests constituting the Trust under the Agreement described below.
This certificate (a "Certificate") does not represent an interest in,
or obligation of, Green Tree Floorplan Funding Corp., Green Tree or any
affiliate of either of them.
This certifies that CEDE & Co. (the "Certificateholder") is the
registered owner of a fractional undivided interest in the Green Tree Floorplan
Receivables Master Trust (the "Trust") issued pursuant to the Pooling and
Servicing Agreement, dated as of December1, 1995 (the "Pooling and Servicing
Agreement"; such term to include any amendment thereto) among Green Tree
Floorplan Funding Corp., as Transferor (the "Transferor"), Green Tree, as
Servicer, and Norwest Bank Minnesota, National Association, as Trustee (the
"Trustee"), and the Series 1998-1 Supplement, dated as of March 1, 1998 (the
"Series 1998-1 Supplement"), among the Transferor, Green Tree as Servicer and
the Trustee. The Pooling and Servicing Agreement, as supplemented by the
Series1998-1 Supplement, is herein referred to as the "Agreement"). The corpus
of the Trust consists of all of the Transferor's right, title and interest in,
to and under the Trust Property (as defined in the Agreement).
This Certificate does not purport to summarize the Agreement and
reference is made to that Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced hereby
and the rights, duties and obligations of the Trustee. To the extent not defined
herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement. This Certificate is one of a class of Certificates entitled
"Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series 1998-1, Class A" (the "Class A
Certificates"), each of which represents a fractional undivided interest in the
Trust, and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement, as amended from time to time,
the Certificateholder by virtue of the acceptance hereof assents and by which
the Certificateholder is bound.
The Transferor has structured the Agreement, the Class A Certificates,
the Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series1998-1, Class B (the "Class B Certificates"
and collectively with the Class A Certificates the "Offered Certificates") and
the Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series 1998-1, Class C (the "Class C
Certificates") with the intention that the Offered Certificates will qualify
under applicable tax law as indebtedness, and both the Transferor and each
holder of a Class A Certificate (a "Class A Certificateholder") or any interest
therein by acceptance of its Certificate or any interest therein, agrees to
treat the Class A Certificates for purposes of federal, state and local income
or franchise taxes and any other tax imposed on or measured by income, as
indebtedness.
A-2
<PAGE>
Subject to the terms of the Agreement, no principal will be payable to
the Class A Certificateholders until the Class A Scheduled Payment Date in the
Controlled Accumulation Period. No principal will be payable to the Class B
Certificateholders, Class C Certificateholders or Class D Certificateholders
until all principal payments have been made to the Class A Certificateholders.
Each Class A Certificate represents the right to receive the lesser of
(i)interest at the rate of .05% per annum above LIBOR determined on April 13,
1998 for the period from April 15, 1998 through May 12, 1998, and at a rate
equal to .05% per annum above LIBOR determined on the related LIBOR
Determination Date for each Interest Accrual Period thereafter or (ii)the
applicable Net Receivables Rate, (such rate, as in effect from time to time, the
"Class A Certificate Rate"). Interest on the Class A Certificates will accrue
from the Series 1998-1 Issuance Date and will be distributed on May 13, 1998,
and on the 13th day of each month thereafter, or if such day is not a Business
Day, on the next succeeding Business Day (each, a "Distribution Date"), in an
amount equal to the product of (a)the actual number of days in the related
Interest Accrual Period divided by 360, (b)the Class A Certificate Rate and
(c)the outstanding principal balance of the Class A Certificates at the close of
Business on the first day of such Interest Accrual Period (or in the case of the
first Distribution Date, the Class A Initial Invested Amount).
On the earlier of (i)the March 2001 Distribution Date or (ii)the first
Distribution Date following the occurrence of a Pay Out Event, interest and
principal will be distributed to the Class A Certificateholders monthly on each
Distribution Date prior to the Series 1998-1 Termination Date. Interest for any
Distribution Date will include accrued interest at the Class A Certificate Rate
from and including the preceding Distribution Date or, in the case of the first
Distribution Date, from and including the Series 1998-1 Issuance Date, to but
excluding such Distribution Date. Interest for any Distribution Date due but not
paid on any Distribution Date will be due on the next succeeding Distribution
Date together with, to the extent permitted by applicable law, additional
interest on such amount at the Class A Certificate Rate.
"CLASS A INVESTED AMOUNT" means an amount equal to (a)the initial
principal balance of the Class A Certificates less the Class A Percentage of the
initial deposit to the Pre-Funding Account plus the Class A Percentage of any
withdrawals from the Pre-Funding Account pursuant to Section 4.18 in connection
with (i)during the Funding Period, the addition of Receivables to the Trust or
(ii)at the end of the Funding Period, for deposit into the Excess Funding
Account, minus (b)the aggregate amount of principal payments (except principal
payments made from the Pre-Funding Account) made to Class A Certificateholders
prior to such date, minus (c)the aggregate amount of Class A Investor
Charge-Offs for all prior Determination Dates, and plus (d)the aggregate amount
allocated and available on all prior Business Days pursuant to subsection
4.9(a)(vi) (including amounts applied pursuant to such subsection but funded
pursuant to Section 4.10(a) and (b) and Section 4.14(a), (b) and (c)) for the
purpose of reimbursing amounts deducted pursuant to the foregoing clause (c).
A-3
<PAGE>
Subject to the Agreement, payments of principal are limited to the
unpaid Class A Invested Amount of the Class A Certificates, which may be less
than the unpaid balance of the Class A Certificates pursuant to the terms of the
Agreement. All principal of and interest on the Class A Certificates is due and
payable no later than the Distribution Date in March 2003 (the "Series 1998-1
Termination Date"). After the Series 1998-1 Termination Date neither the Trust
nor the Transferor will have any further obligation to distribute principal or
interest on the Class A Certificates. In the event that the Class A Invested
Amount is greater than zero on the Series 1998-1 Termination Date, the Trustee
will sell or cause to be sold, to the extent necessary, an amount of interests
in the Receivables or certain of the Receivables up to 110% of the Class A
Invested Amount, the Class B Invested Amount, the Class C Invested Amount and
the Class D Invested Amount at the close of business on such date (but not more
than the total amount of Receivables allocable to the Investor Certificates),
and shall pay the proceeds to the Class A Certificateholders pro rata in final
payment of the Class A Certificates, then to the Class B Certificateholders pro
rata in final payment of the Class B Certificates, then to the Class C
Certificateholders pro rata in final payment of the Class C Certificates and
finally to the Class D Certificateholders pro rata in final payment of the Class
D Certificates.
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement, or be valid for any purpose.
A-4
<PAGE>
IN WITNESS WHEREOF, the Transferor has caused this Certificate to be
duly executed.
GREEN TREE FLOORPLAN
FUNDING CORP., Transferor
By:
--------------------------------
Name:
Title:
Dated: April 15, 1998
CERTIFICATE OF AUTHENTICATION
This is one of the Class A Certificates referred to in the
within-mentioned Pooling and Servicing Agreement.
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, Trustee
By:
--------------------------------
Name:
Title:
A-5
<PAGE>
Exhibit B
FORM OF CLASS B INVESTOR CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.
EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF GREEN TREE
FLOORPLAN FUNDING CORP. THAT UNLESS SUCH PURCHASER, AT ITS EXPENSE, DELIVERS TO
THE TRUSTEE, THE SERVICER AND THE TRANSFEROR AN OPINION OF COUNSEL SATISFACTORY
TO THEM TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE BY SUCH
PURCHASER WILL NOT RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "ASSETS
OF THE BENEFIT PLAN" OR SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA AND THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE TRANSFEROR OR THE
SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AND
SERVICING AGREEMENT, SUCH PURCHASER IS NOT (I)AN EMPLOYEE BENEFIT PLAN (AS
DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA,
(II)A PLAN DESCRIBED IN SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED, OR (III)AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY
REASON OF A PLAN'S INVESTMENT IN THE ENTITY.
B-1
<PAGE>
No. R-1 $20,475,000
GREEN TREE FLOORPLAN RECEIVABLES MASTER TRUST
FLOATING RATE FLOORPLAN RECEIVABLE TRUST
CERTIFICATE, SERIES 1998-1, CLASS B
Evidencing an undivided interest in a trust, the corpus of which
consists of receivables generated from time to time in the ordinary course of
business from the portfolio of revolving financing arrangements (the "Accounts")
of Green Tree Financial Corporation ("Green Tree" or the "Servicer") and other
assets and interests constituting the Trust under the Agreement described below.
This certificate (a "Certificate") does not represent an interest in,
or obligation of, Green Tree Floorplan Funding Corp., Green Tree or any
affiliate of either of them.
This certifies that CEDE & CO. (the "Certificateholder") is the
registered owner of a fractional undivided interest in the Green Tree Floorplan
Receivables Master Trust (the "Trust") issued pursuant to the Pooling and
Servicing Agreement, dated as of December1, 1995 (the "Pooling and Servicing
Agreement"; such term to include any amendment thereto) among Green Tree
Floorplan Funding Corp., as Transferor (the "Transferor"), Green Tree, as
Servicer, and Norwest Bank Minnesota, National Association, as Trustee (the
"Trustee"), and the Series 1998-1 Supplement, dated as of March 1, 1998 (the
"Series1998-1 Supplement"), among the Transferor, Green Tree, as Servicer, and
the Trustee. The Pooling and Servicing Agreement, as supplemented by the
Series1998-1 Supplement, is herein referred to as the "Agreement." The corpus of
the Trust consists of all of the Transferor's right, title and interest in, to
and under the Trust Property (as defined in the Agreement).
This Certificate does not purport to summarize the Agreement and
reference is made to that Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced hereby
and the rights, duties and obligations of the Trustee. To the extent not defined
herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement. This Certificate is one of a class of Certificates entitled
"Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series 1998-1, Class B" (the "Class B
Certificates"), each of which represents a fractional undivided interest in the
Trust, and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement, as amended from time to time,
the Certificateholder by virtue of the acceptance hereof assents and by which
the Certificateholder is bound.
The Transferor has structured the Agreement, the Class B Certificates,
the Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series 1998-1, Class A (the "Class A
Certificates" and collectively with the Class B Certificates the "Offered
Certificates") and the Green Tree Floorplan
B-2
<PAGE>
Receivables Master Trust Floating Rate Floorplan Receivable Trust Certificates,
Series 1998-1, Class C (the "Class C Certificates") with the intention that the
Offered Certificates will qualify under applicable tax law as indebtedness, and
both the Transferor and each holder of a Class B Certificate (a "Class B
Certificateholder") or any interest therein by acceptance of its Certificate or
any interest therein, agrees to treat the Class B Certificates for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or measured by income, as indebtedness.
Subject to the terms of the Agreement, no principal will be payable to
the Class B Certificateholders until the Class B Principal Commencement Date,
which is the Distribution Date on which, or following the Distribution Date on
which, the Class A Invested Amount has been paid in full. No principal will be
payable to the Class B Certificateholders until all principal payments have been
made to the Class A Certificateholders. No principal payments will be made to
the Class C Certificateholder until the Distribution Date either on or following
the Distribution Date on which the Class B Invested Amount has been paid in
full.
Each Class B Certificate represents the right to receive the lesser of
(i)interest at the rate of .27% per annum above LIBOR determined on April 13,
1998 for the period from April 15, 1998 through May 12, 1998, and at a rate
equal to .27% per annum above LIBOR determined on the related LIBOR
Determination Date for each Interest Accrual Period thereafter or (ii)the
applicable Net Receivables Rate (such rate, as in effect from time to time, the
"Class B Certificate Rate"). Interest on the Class B Certificates will accrue
from the Series 1998-1 Issuance Date and will be distributed on May 13, 1998,
and on the 13th day of each month thereafter, or if such day is not a Business
Day, on the next succeeding Business Day (each, a "Distribution Date"), in an
amount equal to the product of (a)the actual number of days in the related
Interest Accrual Period divided by 360, (b)the Class B Certificate Rate and
(c)the outstanding principal balance of the Class B Certificates at the close of
business on the first day of such Interest Accrual Period.
Interest for any Distribution Date will include accrued interest at the
Class B Certificate Rate from and including the preceding Distribution Date or,
in the case of the first Distribution Date from and including the Series 1998-1
Issuance Date, to but excluding such Distribution Date. Interest for any
Distribution Date due but not paid on any Distribution Date will be due on the
next succeeding Distribution Date together with, to the extent permitted by
applicable law, additional interest on such amount at the Class B Certificate
Rate.
"CLASS B INVESTED AMOUNT" for any date means an amount equal to (a)the
initial principal balance of the Class B Certificates less the Class B
Percentage of the initial deposit to the Pre-Funding Account plus the Class B
Percentage of any withdrawals from the Pre-Funding Account pursuant to Section
4.18 in connection with (i)during the Funding Period, the addition of
Receivables to the Trust or (ii)at the end of the Funding Period, for deposit
into the Excess Funding Account minus
B-3
<PAGE>
(b) the aggregate amount of principal payments (except principal payments made
from the Pre-Funding Account) made to Class B Certificateholders prior to such
date, minus (c)the aggregate amount of the Class B Investor Charge-Offs for all
prior Determination Dates equal to the amount by which the Class B Invested
Amount has been reduced to fund the Investor Default Amounts on all prior
Determination Dates pursuant to Section 4.13(c), minus (d)the aggregate amount
of Reallocated Class B Principal Collections for which neither the Class D
Invested Amount nor the Class C Invested Amount has been reduced for all prior
Distribution Dates, and plus (e)the aggregate amount allocated and available on
all prior Business Days pursuant to subsection 4.9(a)(viii) (including amounts
applied pursuant to such subsection but funded pursuant to Section 4.10(a) and
(b) and Section 4.14(a) and (b)) for the purpose of reimbursing amounts deducted
pursuant to the foregoing clauses (c) and (d).
Subject to the Agreement, payments of principal are limited to the
unpaid Class B Invested Amount of the Class B Certificates, which may be less
than the unpaid balance of the Class B Certificates pursuant to the terms of the
Agreement. All principal of and interest on the Class B Certificates is due and
payable no later than the Distribution Date in March 2003 (the "Series 1998-1
Termination Date"). After the Series 1998-1 Termination Date neither the Trust
nor the Transferor will have any further obligation to distribute principal or
interest on the Class B Certificates. In the event that the Class B Invested
Amount is greater than zero on the Series 1998-1 Termination Date, the Trustee
will sell or cause to be sold, to the extent necessary, an amount of interests
in the Receivables or certain of the Receivables up to 110% of the Class A
Invested Amount, the Class B Invested Amount, the Class C Invested Amount and
the Class D Invested Amount at the close of business on such date (but not more
than the total amount of Receivables allocable to the Investor Certificates),
and shall pay the proceeds to the Class A Certificateholders pro rata in final
payment of the Class A Certificates, then to the Class B Certificateholders pro
rata in final payment of the Class B Certificates, then to the Class C
Certificateholders pro rata in final payment of the Class C Certificates and
finally to the Class D Certificateholders pro rata in final payment of the Class
D Certificates.
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement, or be valid for any purpose.
B-4
<PAGE>
IN WITNESS WHEREOF, the Transferor has caused this Certificate to be
duly executed.
GREEN TREE FLOORPLAN
FUNDING CORP., Transferor
By:
---------------------------------
Name:
Title:
Dated: April 15, 1998
CERTIFICATE OF AUTHENTICATION
This is one of the Class B Certificates referred to in the
within-mentioned Pooling and Servicing Agreement.
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, Trustee
By:
---------------------------------
Name:
Title:
B-5
<PAGE>
Exhibit C
FORM OF CLASS C INVESTOR CERTIFICATE
THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO AN INSTITUTIONAL INVESTOR THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A ("QIB") PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING
FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE
REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, OR TO THE TRANSFEROR. EACH CERTIFICATE OWNER BY ACCEPTING A BENEFICIAL
INTEREST IN THIS CERTIFICATE IS DEEMED TO REPRESENT THAT IT IS A QIB PURCHASING
FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB.
THIS CERTIFICATE MAY NOT BE ACQUIRED, SOLD, TRADED OR TRANSFERRED, NOR
MAY AN INTEREST IN THIS CERTIFICATE BE MARKETED, ON OR THROUGH AN "ESTABLISHED
SECURITIES MARKET" WITHIN THE MEANING OF SECTION 7740(B)(1) OF THE CODE AND ANY
PROPOSED, TEMPORARY OR FINAL TREASURY REGULATION THEREUNDER, INCLUDING, WITHOUT
LIMITATION, AN OVER-THE-COUNTER-MARKET OR ANY INTERDEALER QUOTATION SYSTEM THAT
REGULARLY DISSEMINATES FIRM BUY OR SELL QUOTATIONS.
EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF GREEN TREE
FLOORPLAN FUNDING CORP. THAT, UNLESS SUCH PURCHASER, AT ITS EXPENSE, DELIVERS TO
THE TRUSTEE, THE SERVICER AND THE TRANSFEROR AN OPINION OF COUNSEL SATISFACTORY
TO THEM TO THE EFFECT THAT THE PURCHASE OR HOLDING OF A CLASS C CERTIFICATE BY
SUCH PURCHASER WILL NOT RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE
"ASSETS OF THE BENEFIT PLAN" AND SUBJECT TO THE PROHIBITED TRANSACTION
PROVISIONS OF ERISA AND THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE
TRANSFEROR OR THE SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN
THE POOLING AND SERVICING AGREEMENT, SUCH PURCHASER EITHER (A) IS NOT (I)AN
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE
C-1
<PAGE>
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS
SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (II)A PLAN DESCRIBED IN SECTION
4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (III)AN ENTITY
WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT IN
THE ENTITY, INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT
OR (B)IS AN INSURANCE COMPANY ACTING ON BEHALF OF ITS GENERAL ACCOUNT AND (I) ON
THE DATE IT ACQUIRES THE CERTIFICATES, LESS THAN 25% OF THE ASSETS OF SUCH
GENERAL ACCOUNT (AS REASONABLY DETERMINED BY SUCH INSURANCE COMPANY) CONSTITUTE
PLAN ASSETS FOR PURPOSES OF TITLE I OF ERISA AND SECTION 4975 OF THE CODE, AND
(II) IF, AFTER THE INITIAL ACQUISITION OF THE CERTIFICATES, AT ANY TIME DURING
ANY CALENDAR QUARTER 25% OR MORE OF THE ASSETS OF SUCH GENERAL ACCOUNT (AS
REASONABLY DETERMINED BY SUCH INSURANCE COMPANY NO LESS FREQUENTLY THAN EACH
CALENDAR QUARTER) CONSTITUTE PLAN ASSETS FOR PURPOSES OF TITLE I OF ERISA OR
SECTION 4975 OF THE CODE AND NO EXEMPTION OR EXCEPTION FROM THE PROHIBITED
TRANSACTION RULES APPLIES TO THE CONTINUED HOLDING OF THE CERTIFICATES UNDER
SECTION 401(C) OF ERISA AND THE FINAL REGULATIONS THEREUNDER OR UNDER AN
EXEMPTION OR REGULATION ISSUED BY THE UNITED STATES DEPARTMENT OF LABOR UNDER
ERISA, THEN SUCH INSURANCE COMPANY AGREES TO DISPOSE OF ALL OF THE CERTIFICATES
THEN HELD IN ITS GENERAL ACCOUNT BY THE END OF THE NEXT FOLLOWING CALENDAR
QUARTER.
No. _________ $19,337,000
GREEN TREE FLOATING RATE FLOORPLAN RECEIVABLES MASTER TRUST
FLOATING RATE FLOORPLAN RECEIVABLE TRUST CERTIFICATE,
SERIES 1998-1, CLASS C
Evidencing an undivided interest in a trust, the corpus of which
consists of receivables generated from time to time in the ordinary course of
business from the portfolio of revolving financing arrangements (the "Accounts")
of Green Tree Financial Corporation ("Green Tree" or the "Servicer") and other
assets and interests constituting the Trust under the Agreement described below.
This certificate (a "Certificate") does not represent an interest in,
or an obligation of, Green Tree Floorplan Funding Corp., Green Tree or any
affiliate of either of them, except to the extent set forth in the Agreement.
C-2
<PAGE>
This certifies that _______________________________ (the
"Certificateholder") is the registered owner of a fractional undivided interest
in the Green Tree Floorplan Receivables Master Trust (the "Trust") issued
pursuant to the Pooling and Servicing Agreement, dated as of December1, 1995
(the "Pooling and Servicing Agreement"; such term to include any amendment
thereto) among Green Tree Floorplan Funding Corp., as Transferor (the
"Transferor"), Green Tree, as Servicer, and Norwest Bank Minnesota, National
Association, as Trustee (the "Trustee"), and the Series 1998-1 Supplement, dated
as of March 1, 1998 (the "Series 1998-1 Supplement"), among the Transferor,
Green Tree, as Servicer, and the Trustee. The Pooling and Servicing Agreement,
as supplemented by the Series1998-1 Supplement, is herein referred to as the
"Agreement." The corpus of the Trust consists of all of the Transferor's right,
title and interest in, to and under the Trust Property (as defined in the
Agreement).
This Certificate does not purport to summarize the Agreement and
reference is made to that Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced hereby
and the rights, duties and obligations of the Trustee. To the extent not defined
herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement. This Certificate is one of a class of Certificates entitled
"Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series 1998-1, Class C" (the "Class C
Certificates"), each of which represents a fractional undivided interest in the
Trust, and is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement, as amended from time to time,
the Certificateholder by virtue of the acceptance hereof assents and by which
the Certificateholder is bound.
The Transferor has structured the Agreement, the Class C Certificates,
the Green Tree Floorplan Receivables Master Trust Floating Rate Floorplan
Receivable Trust Certificates, Series1998-1, Class A (the "Class A
Certificates") and the Green Tree Floorplan Receivables Master Trust Floating
Rate Floorplan Receivable Trust Certificates, Series 1998-1, Class B (the "Class
B Certificates") with the intention that the Class A, Class B and Class C
Certificates will qualify under applicable tax law as indebtedness, and both the
Transferor and each holder of a Class C Certificate (a"Class C
Certificateholder") or any interest therein by acceptance of its Certificate or
any interest therein, agrees to treat the Class A, Class B and Class C
Certificates for purposes of federal, state and local income or franchise taxes
and any other tax imposed on or measured by income, as indebtedness.
Subject to the terms of the Agreement, no principal will be payable to
the Class C Certificateholders until the Class C Principal Commencement Date,
which is the Distribution Date following the Distribution Date on which the
Class A Invested Amount and the Class B Invested Amount have been paid in full.
No principal payments will be payable to the Class C Certificateholders until
the Distribution Date either on or following the Distribution Date on which the
Class B Invested Amount has been paid in full.
C-3
<PAGE>
Each Class C Certificate represents the right to receive the lesser of
(i)interest at the rate of .70% per annum above LIBOR determined on April 13,
1998 for the period from April 15, 1998 through May 12, 1998, and at a rate
equal to .70% per annum above LIBOR determined on the related LIBOR
Determination Date for each Interest Accrual Period thereafter or (ii)the
applicable Net Receivables Rate (such rate, as in effect from time to time, the
"Class C Certificate Rate"). Interest on the Class C Certificates will accrue
from the Series 1998-1 Issuance Date and will be distributed on May 13, 1998,
and on the 13th day of each month thereafter, or if such day is not a Business
Day, on the next succeeding Business Day (each, a "Distribution Date"), in an
amount equal to the product of (a)the actual number of days in the related
Interest Accrual Period divided by 360, (b)the Class C Certificate Rate and
(c)the outstanding principal balance of the Class C Certificates at the close of
business on the first day of such Interest Accrual Period.
"CLASS C INVESTED AMOUNT" for any date means an amount equal to (a)the
initial principal balance of the Class C Certificates less the Class C
Percentage of the initial deposit to the Pre-Funding Account plus the Class C
Percentage of any withdrawals from the Pre-Funding Account pursuant to Section
4.18 in connection with (i)during the Funding Period, the addition of
Receivables to the Trust or (ii)at the end of the Funding Period, for deposit
into the Excess Funding Account, minus (b)the aggregate amount of principal
payments (except principal payments made from the Pre-Funding Account) made to
Class C Certificateholders prior to such date, minus (c)the aggregate amount of
the Class C Investor Charge-Offs for all prior Distribution Dates equal to the
amount by which the Class C Invested Amount has been reduced to fund the
Investor Default Amounts on all prior Distribution Dates pursuant to Section
4.13(b), minus (d)the aggregate amount of Reallocated Class B Principal
Collections and Reallocated Class C Principal Collections for which the Class D
Invested Amount has not been reduced for all prior Distribution Dates (provided
that the Class C Invested Amount may not be reduced below zero), and plus (e)the
aggregate amount allocated and available on all prior Business Days pursuant to
subsection 4.9(a)(ix) (including amounts applied pursuant to such subsection but
funded pursuant to Section 4.10(a) and (b) and Section 4.14(a)) for the purpose
of reimbursing amounts deducted pursuant to the foregoing clauses (c)and (d).
Subject to the Agreement, payments of principal are limited to the
unpaid Class C Invested Amount of the Class C Certificates, which may be less
than the unpaid balance of the Class C Certificates pursuant to the terms of the
Agreement. All principal on the Class C Certificates is due and payable no later
than the Distribution Date in March 2003 (or if such day is not a Business Day,
the next succeeding Business Day) (the "Series 1998-1 Termination Date"). After
the Series 1998-1 Termination Date neither the Trust nor the Transferor will
have any further obligation to distribute principal on the Class C Certificates.
In the event that the Class C Invested Amount is greater than zero on the Series
1998-1 Termination Date, the Trustee will sell or cause to be sold, to the
extent necessary, an amount of interests in the Receivables or certain of the
Receivables up to 110% of the Class A
C-4
<PAGE>
Invested Amount, the Class B Invested Amount, the Class C Invested Amount and
the Class D Invested Amount at the close of business on such date (but not more
than the total amount of Receivables allocable to the Investor Certificates),
and shall pay the proceeds to the Class A Certificateholders pro rata in final
payment of the Class A Certificates, then to the Class B Certificateholders pro
rata in final payment of the Class B Certificates, then to the Class C
Certificateholders pro rata in final payment of the Class C Certificates and
finally to the Class D Certificateholders pro rata in final payment of the Class
D Certificates.
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement, or be valid for any purpose.
C-5
<PAGE>
IN WITNESS WHEREOF, the Transferor has caused this Certificate to be
duly executed.
GREEN TREE FLOORPLAN
FUNDING CORP., Transferor
By:
---------------------------------
Name:
Title:
Dated: April 15, 1998
CERTIFICATE OF AUTHENTICATION
This is one of the Class C Certificates referred to in the
within-mentioned Pooling and Servicing Agreement.
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, Trustee
By:
---------------------------------
Name:
Title:
C-6
<PAGE>
Exhibit D
FORM OF CLASS D INVESTOR CERTIFICATE
THIS CERTIFICATE WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"). THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAW OF ANY STATE AND MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED PURSUANT TO OR EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAW.
GREEN TREE FLOORPLAN FUNDING CORP. SHALL BE PROHIBITED FROM TRANSFERRING ANY
INTEREST IN OR PORTION OF THIS CERTIFICATE UNLESS, PRIOR TO SUCH TRANSFER, IT
SHALL HAVE DELIVERED TO THE TRUSTEE AN OPINION OF COUNSEL TO THE EFFECT THAT
SUCH PROPOSED TRANSFER WILL NOT ADVERSELY AFFECT THE FEDERAL OR MINNESOTA INCOME
TAX CHARACTERIZATION OF ANY OUTSTANDING SERIES OF INVESTOR CERTIFICATES OR THE
TAXABILITY (OR TAX CHARACTERIZATION) OF THE TRUST UNDER FEDERAL OR MINNESOTA
INCOME TAX LAWS. IN NO EVENT SHALL THE TRANSFEROR BE PERMITTED TO TRANSFER ANY
INTEREST IN OR PORTION OF THIS CERTIFICATE IF, AFTER GIVING EFFECT TO SUCH
PROPOSED TRANSFER, TAKING INTO ACCOUNT THE CERTIFICATES WHOSE TRANSFER IS
PROPOSED, MORE THAN 20% (BY INVESTED AMOUNT AND BY VALUE) OF THE OUTSTANDING
CERTIFICATES ISSUED BY THE TRUST WITH RESPECT TO WHICH NO OPINION OF COUNSEL WAS
ISSUED THAT THE APPLICABLE CLASS WOULD BE TREATED AS DEBT FOR FEDERAL INCOME TAX
PURPOSES (INCLUDING THE EXCHANGEABLE TRANSFEROR CERTIFICATE AND EACH TRANSFEROR
RETAINED CLASS) WOULD NOT BE BENEFICIALLY OWNED BY GREEN TREE FLOORPLAN FUNDING
CORP.
EACH PURCHASER REPRESENTS AND WARRANTS FOR THE BENEFIT OF GREEN TREE
FLOORPLAN FUNDING CORP. THAT UNLESS SUCH PURCHASER, AT ITS EXPENSE, DELIVERS TO
THE TRUSTEE, THE SERVICER AND THE TRANSFEROR AN OPINION OF COUNSEL SATISFACTORY
TO THEM TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE BY SUCH
PURCHASER WILL NOT RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "ASSETS
OF THE BENEFIT PLAN" OR SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF
ERISA AND THE CODE AND WILL NOT SUBJECT THE TRUSTEE, THE TRANSFEROR OR THE
SERVICER TO ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING AND
SERVICING AGREEMENT, SUCH PURCHASER IS NOT (I)AN
D-1
<PAGE>
EMPLOYEE BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS SUBJECT TO THE
PROVISIONS OF TITLE I OF ERISA, (II)A PLAN DESCRIBED IN SECTION 4975(E)(1) OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (III)AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT IN THE
ENTITY.
No. _____ $14,788,000
GREEN TREE FLOORPLAN RECEIVABLES MASTER TRUST
FLOATING RATE FLOORPLAN RECEIVABLE TRUST CERTIFICATE,
SERIES 1998-1, CLASS D
Evidencing an undivided interest in a trust, the corpus of which
consists of receivables generated from time to time in the ordinary course of
business from the portfolio of revolving financing arrangements (the "Accounts")
of Green Tree Financial Corporation ("Green Tree" or the "Servicer") and other
assets and interests constituting the Trust under the Agreement described below.
This certificate (a "Certificate") does not represent an interest in,
or an obligation of, Green Tree Floorplan Funding Corp., Green Tree or any
affiliate of either of them.
This certifies that Green Tree Floorplan Funding Corp. (the
"Certificateholder") is the registered owner of a fractional undivided interest
in the Green Tree Floorplan Receivables Master Trust (the "Trust") created
pursuant to the Pooling and Servicing Agreement, dated as of December1, 1995
(the "Pooling and Servicing Agreement"; such term to include any amendment
thereto) among Green Tree Floorplan Funding Corp., as Transferor (the
"Transferor"), Green Tree, as Servicer, and Norwest Bank Minnesota, National
Association, as Trustee (the "Trustee"), and the Series 1998-1 Supplement, dated
as of March 1, 1998 (the "Series 1998-1 Supplement"), among the Transferor,
Green Tree, as Servicer, and the Trustee. The Pooling and Servicing Agreement,
as supplemented by the Series 1998-1 Supplement, is herein referred to as the
"Agreement."
This Certificate does not purport to summarize the Agreement and
reference is made to that Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced hereby
and the rights, duties and obligations of the Trustee. To the extent not defined
herein, the capitalized terms used herein have the meanings ascribed to them in
the Agreement. This Certificate is one of a class of Certificates entitled
"Green Tree Floorplan Receivables Master Trust Floorplan Receivable Trust
Certificates, Series 1998-1, Class D" (the "Class D Certificates"), each of
which represents a fractional undivided interest in the Trust, and is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement, as amended from time to time, the
D-2
<PAGE>
Certificateholder by virtue of the acceptance hereof assents and by which the
Certificateholder is bound.
Green Tree Floorplan Funding Corp. shall be prohibited from
Transferring any interest in or portion of the Class D Certificate unless, prior
to such Transfer, it shall have delivered to the Trustee an Opinion of Counsel
to the effect that such proposed Transfer will not adversely affect the Federal,
Minnesota or Delaware income tax characterization of any outstanding Series of
Investor Certificate or the taxability (or tax characterization) of the Trust
under Federal, Minnesota or Delaware income tax laws. In no event shall Green
Tree Floorplan Funding Corp. be permitted to Transfer any interest in or portion
of the Class D Certificate if, after giving effect to such proposed Transfer,
taking into account the certificates whose Transfer is proposed, more than 20%
(by Invested Amount and by value) of the outstanding certificates issued by the
Trust with respect to which no Opinion of Counsel was issued that the applicable
class would be treated as debt for federal income tax purposes (including the
Exchangeable Transferor Certificate and each Transferor Retained Class) would
not be beneficially owned by the Transferor.
Subject to the terms of the Agreement, no principal will be payable to
the Class D Certificateholders until the Class D Principal Commencement Date,
which is the Distribution Date following the Distribution Date on which the
Class C Invested Amount had been paid in full. No principal will be payable to
the Class D Certificateholders until all principal payments have first been made
to the Class A Certificateholders and then on and after the Class B Principal
Payment Commencement Date, after all principal payments have been made to the
Class B Certificateholders and then on and after the Class C Principal
Commencement Date, after all payments have been made to the Class C
Certificateholders.
Each Class D Certificate represents the right to receive the lesser of
(i)interest at the rate of .70% per annum above LIBOR determined on April 13,
1998 for the period from April 15, 1998 through May 12, 1998, and at a rate
equal to .70% per annum above LIBOR determined on the related LIBOR
Determination Date for each Interest Accrual Period thereafter or (ii)the
applicable Net Receivables Rate (such rate, as in effect from time to time, the
"Class D Certificate Rate"). Interest on the Class D Certificates will accrue
from the Series 1998-1 Issuance Date and will be distributed on May 13, 1998,
and on the 13th day of each month thereafter, or if such day is not a Business
Day, on the next succeeding Business Day (each, a "Distribution Date"), in an
amount equal to the product of (a)the actual number of days in the related
Interest Accrual Period divided by 360, (b)the Class D Certificate Rate and
(c)with respect to the Funding Period, the outstanding principal balance of the
Class D Certificates at the close of business on the first day of such Interest
Accrual Period.
"Class D Invested Amount" means an amount equal to (a)the initial
principal balance of the Class D Certificates plus (b the Class D Incremental
Invested Amount for the related Monthly Period, plus (c) any Additional Class D
Invested Amount, minus (d)the aggregate amount of principal payments made to
Class D
D-3
<PAGE>
Certificateholders prior to such date, minus (e)the aggregate amount of Class D
Investor Charge-Offs for all prior Determination Dates as described in the
Agreement, minus (f) the aggregate amount of Reallocated Class D Principal
Collections for all prior Distribution Dates, plus (g) the aggregate amount of
Interest Collections and Excess Interest Collections applied on all prior
Distribution Dates for the purpose of reimbursing amounts deducted pursuant to
the foregoing clauses (e) and (f).
Subject to the Agreement, payments of principal are limited to the
unpaid Class D Invested Amount of the Class D Certificates, which may be less
than the unpaid balance of the Class D Certificates pursuant to the terms of the
Agreement.
All principal of and interest on the Class D Certificates is due and
payable no later than the Distribution Date in March 2003 (the "Series 1998-1
Termination Date"). After the Series 1998-1 Termination Date neither the Trust
nor the Transferor will have any further obligation to distribute principal or
interest on the Class D Certificates. In the event that the Class D Invested
Amount is greater than zero on the Series 1998-1 Termination Date, the Trustee
will sell or cause to be sold, to the extent necessary, an amount of interests
in the Receivables or certain of the Receivables up to 110% of the Class A
Invested Amount, the Class B Invested Amount, the Class C Invested Amount and
the Class D Invested Amount at the close of business on such date (but not more
than the total amount of Receivables allocable to the Investor Certificates),
and shall pay the proceeds to the Class A Certificateholders pro rata in final
payment of the Class A Certificates, then to the Class B Certificateholders pro
rata in final payment of the Class B Certificates, then to the Class C
Certificateholders pro rata in final payment of the Class C Certificates and
finally to the Class D Certificateholders pro rata in final payment of the Class
D Certificates.
Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement, or be valid for any purpose.
D-4
<PAGE>
IN WITNESS WHEREOF, the Transferor has caused this Certificate to be
duly executed.
GREEN TREE FLOORPLAN
FUNDING CORP., Transferor
By:
--------------------------------
Name:
Title:
Dated: April 15, 1998
CERTIFICATE OF AUTHENTICATION
This is one of the Class D Certificates referred to in the
within-mentioned Pooling and Servicing Agreement.
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, Trustee
By:
--------------------------------
Name:
Title:
D-5
<PAGE>
Exhibit E
FORM OF MONTHLY REPORT
(The numbers included in the following form are
for informational purposes only)
GREEN TREE FLOORPLAN FUNDING CORP.
-------------------------
GREEN TREE FLOORPLAN RECEIVABLES MASTER TRUST
-------------------------
(See Attached)
E-1
<PAGE>
Exhibit F
Form of Representation Letter and Certification
April 15, 1998
Green Tree Floorplan Funding Corp.
500 Landmark Towers
345 St. Peter Street
St. Paul, MN 55102
Attention: Chief Financial Officer
Norwest Bank Minnesota, National Association
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479-0069
Attention: Corporate Trust Department
Ladies and Gentlemen:
This is to notify you as to the transfer of $________ of Floorplan
Receivable Trust Certificates, Series 1998-1, Class C (the "Class C
Certificates") of Green Tree Floorplan Receivables Master Trust (the "Company").
The undersigned is the holder of the Class C Certificates and with this
notice hereby deposits with the Trustee $________ principal amount of Class C
Certificates and requests that Class C Certificates in the same principal amount
be issued and executed by the Company and authenticated by the Trustee and
registered to the purchaser on April 15, 1998, as specified in the Pooling and
Servicing Agreement, as supplemented by the Series 1998-1 Supplement thereto, as
follows:
Name: Denominations:
Address:
Taxpayer I.D. No.:
In connection with the proposed purchase, the undersigned hereby
confirms that:
1. The undersigned (i)reasonably believes the purchaser is a
"qualified institutional buyer," as defined in Rule 144A under the Securities
Act of 1933 (the "Act"), (ii)such purchaser has acquired the Class C
Certificates in a transaction effected in accordance with the exemption from the
registration requirements of the Act provided by Rule 144A and, (iii)if the
purchaser has purchased the Certificates for one or more accounts for which it
is acting as fiduciary or agent, (A)each such account is a qualified
institutional buyer and (B)each such account is acquiring the
F-1
<PAGE>
Class C Certificates for its own account or for one or more institutional
accounts for which it is acting as fiduciary or agent in a minimum amount
equivalent to not less than U.S. $250,000 for each such account.
2. The undersigned has neither acquired nor will the
undersigned reoffer, resell, pledge or otherwise transfer (any such act, a
"Transfer") any Class C Certificate the undersigned acquires (or any interest
therein) or cause any Class C Certificate (or any interest therein) to be
marketed on or through an "established securities market" within the meaning of
Section 7704(b)(1) of the Internal Revenue Code of 1986, as amended (the "Code")
and any treasury regulation thereunder, including, without limitation, an
over-the-counter-market or an interdealer quotation system that regularly
disseminates firm buy or sell quotations.
3. The undersigned is not and will not become, for so long as the
undersigned owns any interest in the Class C Certificates, a partnership,
Subchapter S corporation or grantor trust for United States federal income tax
purposes. [IF THIS REPRESENTATION CANNOT BE MADE, THE TRANSFEROR, THE SERVICER
OR THE TRUSTEE MAY REQUIRE ADDITIONAL REPRESENTATIONS.]
4. The undersigned is a person who is either (A)(i) a citizen or
resident of the United States, (ii) a corporation or other entity organized in
or under the laws of the United States or any political subdivision thereof or
(iii) a person not described in (i) or (ii) whose ownership of the Class C
Certificates is effectively connected with a such person's conduct of a trade or
business within the United States (within the meaning of the Code) and our
ownership of any interest in the Class C Certificate will not result in any
withholding obligation with respect to any payments with respect to the Class C
Certificates by any person or (B) an estate or trust the income of which is
includible in gross income for United States federal income tax purposes. The
undersigned agrees that (a) if the undersigned is a person described in clause
(A)(i) or (A)(ii) above, the undersigned will furnish to the person from whom
the undersigned is acquiring a Class C Certificate, the Servicer and the
Trustee, a properly executed U.S. Internal Revenue Service Form W-9 and a new
Form W-9, or any successor applicable form, upon the expiration or obsolescence
of any previously delivered form or (b) if the undersigned a person described in
clause (A)(iii) above, the undersigned will furnish to the person from whom the
undersigned is acquiring a Class C Certificate, the Servicer and the Trustee, a
properly executed U.S. Internal Revenue Service Form 4224 and a new Form 4224,
or any successor applicable form, upon the expiration or obsolescence of any
previously delivered form (and, in each case, such other certifications,
representations or opinions of counsel as may be requested by the Transferor,
the Servicer or the Trustee). The undersigned recognizes that if the undersigned
is a tax-exempt entity, payments with respect to the Class C Certificates may
constitute unrelated business income.
5. The undersigned understands that no subsequent Transfer of a Class C
Certificate is permitted unless (i) such Transfer is of a Class C Certificate
with a
F-2
<PAGE>
denomination of at least $1,000,000 and (ii) the Transferor and the Servicer
each consents in writing to the proposed Transfer, which consent shall be
granted (assuming that all other conditions to such Transfer are satisfied)
unless either the Transferor or the Servicer determines in its sole and absolute
discretion that such Transfer would created a risk that the Trust would be
classified for federal or any applicable state tax purposes as an association or
publicly traded partnership taxable as a corporation; PROVIDED, that any
attempted Transfer that would cause the number of Targeted Holders (as defined
in the Series 1998-1 Supplement) to exceed ninety nine shall be void; and
PROVIDED, FURTHER, that there shall not at any time be more than 5 holders of
Class C Certificates of Series 1998-1 or such other number as may be consented
to by the Transferor, which consent may be withheld in its sole and absolute
discretion.
6. The undersigned understands that the opinion of tax counsel that the
Trust is not a publicly traded partnership taxable as a corporation is dependent
in part on the accuracy of the representations in paragraphs 2, 3, 4 and 5 above
and that, if such representations are not accurate, in addition to being subject
to having the purchase rescinded, the undersigned will be liable for damages.
7. The undersigned is either (a) not (i) an "employee benefit plan" (as
defined in Section 3(3) of ERISA), including governmental plans and church
plans, (ii) a plan described in Section 4975(e)(1) of the Code, including
individual retirement accounts and Keogh plans, or (iii) any other entity whose
underlying assets include "plan assets" (as defined in the United States
Department of Labor ("DOL") Regulation Section 2510.3-101, 29 C.F.R. ss.
2510.3-101 or otherwise under ERISA) by reason of a plan's investment in the
entity, including, without limitation, an insurance company general account, or
(b) an insurance company acting on behalf of a general account and (i) on the
date hereof less than 25% of the assets of such general account (as reasonably
determined by us) constitute "plan assets" for purposes of Title I of ERISA and
Section 4975 of the Code, and (ii) the undersigned agrees that if, after the
undersigned's initial acquisition of the Class C Certificates, at any time
during any calendar quarter 25% or more of the assets of such general account
(as reasonably determined by us no less frequently than each calendar quarter)
constitute "plan assets" for purposes of Title I of ERISA or Section 4975 of the
Code and no exemption or exception from the prohibited transaction rules applies
to the continued holding of the Class C Certificates under Section 401(c) of
ERISA and the final regulations thereunder or under an exemption or regulation
issued by the DOL under ERISA, we will dispose of all of the Class C
Certificates then held in our general account by the end of the next following
calendar quarter.
8. The undersigned understands that any purported Transfer of any Class
C Certificate in contravention of the restrictions and conditions set forth in
paragraphs 1 through 7 above (including any violation of the representation in
paragraph 3 by an investor who continues to hold a Class C Certificate occurring
any time after the Transfer in which it acquired such Class C Certificate) shall
be null
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<PAGE>
and void, and the purported transferee shall not be recognized by the
Trust or any other person as a Class C Certificateholder for any purpose.
9. The person signing this letter on behalf of the ultimate beneficial
purchaser of the Class C Certificates has been duly authorized by such
beneficial purchaser of the Class C Certificates to do so.
10. The Class C Certificates purchased by the undersigned should be
registered in the name and issued in the denominations set forth on Schedule 1
hereto. All payments on the Class C Certificates held by the undersigned should
be wired in accordance with the instructions set forth on Schedule 1 hereto
unless the undersigned otherwise notifies the Transferor, the Servicer and the
Trustee in writing.
You are entitled to rely upon this letter, and the undersigned
understands that, in granting their respective consents to the purchase of Class
C Certificates, the Transferor and the Servicer will rely on the undersigned's
representations and warranties in this letter and on the undersigned's
certifications in the documents (including, without limitation, the Form W-9 or
Form 4224, as applicable) delivered by the undersigned to the Transferor, the
Servicer or the Trustee in conjunction with the purchase of Class C Certificates
by the undersigned. You are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.
Very truly yours,
NAME OF HOLDER OF CERTIFICATE
By:
--------------------------------
Name, Chief Financial
or other Executive Officer
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<PAGE>
SCHEDULE 1
REGISTRATION AND PAYMENT INSTRUCTIONS
REGISTRATION INSTRUCTIONS:
Full Legal Name of Purchaser:
-------------------------------------------------
Name in Which Certificates Should be Registered:
------------------------------
Number and Denomination of Certificates:
--------------------------------------
PAYMENT INSTRUCTIONS:
Name of Bank:
---------------------------------------------
Address of Bank:
---------------------------------------------
Account Name:
---------------------------------------------
Account Number:
---------------------------------------------
ABA Number:
---------------------------------------------
Reference:
---------------------------------------------
NOTICE INFORMATION:
Address:
---------------------------------------------
---------------------------------------------
Attention:
---------------------------------------------
Telephone:
---------------------------------------------
Telefax:
---------------------------------------------
[PLEASE ATTACH AN ORIGINAL EXECUTED U.S. INTERNAL REVENUE SERVICE FORM W-9
AND/OR FORM 4224, IF APPLICABLE]
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<PAGE>
Exhibit 4.4
AMENDMENT NO. 1
dated as of March 11, 1998
among
GREEN TREE FLOORPLAN FUNDING CORP.
Transferor
GREEN TREE FINANCIAL CORPORATION
Servicer
and
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION
Trustee
to the
POOLING AND SERVICING AGREEMENT
Dated as of December 1, 1995
Green Tree Floorplan Receivables Master Trust
<PAGE>
This Amendment No. 1, dated as of March 11, 1998, to the POOLING AND
SERVICING AGREEMENT, dated as of December1, 1995, is entered into by and among
GREEN TREE FLOORPLAN FUNDING CORP., a corporation organized and existing under
the laws of the State of Delaware, as Transferor, GREEN TREE FINANCIAL
CORPORATION, a corporation organized and existing under the laws of the State of
Delaware, as Servicer, and NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, a
national banking association, as Trustee.
WHEREAS, Section 13.1(a) of the Pooling and Servicing Agreement permits
amendment of the Pooling and Servicing Agreement, without the consent of any of
the Certificateholders, upon the terms and conditions specified therein; and
WHEREAS, the parties hereto desire to amend the Pooling and Servicing
Agreement.
NOW, THEREFORE, the parties hereto hereby agree that the Pooling and
Servicing Agreement is hereby amended effective as of the date hereof as
follows:
1. DEFINITIONS.
(a) ADDITIONAL DEFINITIONS. The following definitions are hereby added
to Section 1.1 of the Pooling and Servicing Agreement:
"PARTICIPATION AGREEMENT" shall mean an agreement among Green
Tree or one of its subsidiaries and a participant pursuant to which
Green Tree or such subsidiary, as applicable, conveys to such
participant an individed interest in receivables arising under a
revolving credit arrangement established by Green Tree (or one of its
subsidiaries) with a Dealer in connection with the Floorplan Business
or the Asset Based Lending Business.
"PARTICIPATION INTEREST" shall mean the undivided interest
created pursuant to a Participation Agreement and conveyed to the
participant party to such Participation Agreement (or its successor in
interest).
(b) REVISED DEFINITIONS.
(i) The definition of "Receivables" contained in the Pooling and
Servicing Agreement is hereby amended in its entirety to read as follows:
"RECEIVABLES" shall mean, with respect to an Account, all
amounts payable (including interest, finance charges and other
charges), and the obligation to pay such amounts, by the related Dealer
from time to time in respect of advances made by Green Tree to or on
behalf of such Dealer in connection with the Floorplan Business or the
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<PAGE>
Asset Based Lending Business, as the case may be, together with the
group of writings evidencing such amounts and the security interest
created in connection therewith and all of the rights, remedies, powers
and privileges thereunder (including under the related Financing
Agreement); provided that if a Participation Interest has been created
in respect of such Account, the amounts payable by the related Dealer
that are allocable to such Participation Interest shall not be part of
the "Receivables" arising under such Account. Receivables which become
Defaulted Receivables will cease to be included as Receivables on the
day on which they become Defaulted Receivables. Receivables which Green
Tree is unable to transfer to the Transferor pursuant to the Purchase
Agreement or which the Transferor is unable to transfer to the Trust as
provided in Section 2.6(d) and Receivables which arise in Designated
Accounts from and after the related Removal Commencement Date shall not
be included in calculating the amount of Receivables.
(ii) The definition of "Eligible Receivable" contained in the Pooling
and Servicing Agreement is hereby amended by deleting "and" at the end of clause
(m), adding "; and" at the end of clause (n), and adding a new clause (o) which
shall read in its entirety as follows:
(o) the Participation Agreement, if any, relating to the
Account in which such Receivable arises
(i) permits the transfer of all receivables arising in such
Account, subject to the Participation Interest created
pursuant to such Participation Agreement, to a securitization
vehicle such as the Transferor and the Trust,
(ii) provides that the related Participation Interest is PARI
PASSU in all respects (other than non-subordinated interest
strips and fees) with such Receivable,
(iii) contains an agreement by the participant that such
participant shall have no rights against the securitization
vehicle or any successor servicer for such securitization
vehicle, other than in connection with funds allocable to the
participant on account of such Participation Interest that
have been improperly withheld by the securitization vehicle or
such successor servicer, and
(iv) contains an agreement by the participant that the
participant will not, for any reason,
(A) institute proceedings for the Trust to be adjudicated
a bankrupt or insolvent, or
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<PAGE>
(B) consent to, or cooperate with the institution of
bankruptcy or insolvency proceedings against the Trust,
or
(C) file a petition with respect to the Trust seeking or
consenting to reorganization or relief under any
applicable Federal or state law relating to bankruptcy,
or
(D) consent to, join in or cooperate with the appointment
of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Trust or
a substantial part of its property, or
(E) cause or permit the Trust to make any assignment for
the benefit of its creditors, or admit in writing its
inability to pay its debts generally as they become due,
or declare or effect a moratorium on its debt or take any
action in furtherance of any such action.
(c) EXISTING DEFINITIONS. Each term used but not defined herein shall
have the meaning assigned to such term in the Pooling and Servicing Agreement.
2. COUNTERPARTS. This Amendment No. 1 to the Pooling and Servicing
Agreement may be executed in several counterparts, each of which shall be deemed
an original hereof and all of which, when taken together, shall constitute one
and the same Amendment to the Pooling and Servicing Agreement.
3. RATIFICATION OF POOLING AND SERVICING AGREEMENT. Except as provided
herein, all provisions, terms and conditions of the Pooling and Servicing
Agreement, including each Series Supplement, shall remain in full force and
effect. As amended hereby, the Pooling and Servicing Agreement, including each
Series Supplement, is ratified and confirmed in all respects.
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<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their respective officers as of the day and year first above
written.
GREEN TREE FLOORPLAN FUNDING
CORP., Transferor
By:
--------------------------------
Name:
Title:
GREEN TREE FINANCIAL
CORPORATION, Servicer
By:
--------------------------------
Name:
Title:
NORWEST BANK MINNESOTA,
NATIONAL ASSOCIATION, Trustee
By:
--------------------------------
Name:
Title:
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