Item 1. Business
The Dealer Note Trust (the "1990 Trust"), the Navistar Financial Dealer Note Master Trust (the "Master Trust") and the Navistar Financial Dealer Note Master Owner Trust (the "Master Owner Trust") are a series of trusts established by Navistar Financial Securities Corporation ("NFSC") to facilitate the financing of loans ("Dealer Notes") by Navistar Financial Corporation ("NFC") to dealers to finance their inventories of trucks and related assets.
The 1990 Trust was formed pursuant to a Pooling and Servicing Agreement, dated as of December 1, 1990, among NFC, as Servicer, NFSC, as Seller, and Manufactures Hanover Trust Company, as trustee. NFC transferred Dealer Notes and related assets to NFSC, which in turn transferred the Dealer Notes and related assets to the 1990 Trust. The 1990 Trust issued various series of certificates backed by the Dealer Notes and related asset.
The Master Trust was formed pursuant to a Pooling and Servicing Agreement dated as of June 8, 1995, among NFSC, as Seller, NFC, as Servicer (the "Servicer"), The Bank of New York, as Master Trust Trustee (the "Master Trust Trustee"), and 1990 Trust trustee. The Master Trust issued various series of certificates backed by interests in certificates issued by the 1990 Trust to it, and upon termination of the 1990 Trust and transfer of the assets of the 1990 Trust to the Master Trust, the Dealer Notes and related assets. On June 8, 1995, the 1990 Trust issued a certificate representing an undivided interest in the 1990 Trust assets in the amount of $207.9 million to the Master Trust which, in turn, issued certificates in the amount of $200.0 million (the "Series 1995-1 Certificates") to the public. On July 17, 1998, the 1990 Trust issued a certificate in the amount of $200.0 million to the Master Trust which, in turn, issued certificates in the amount of $200.0 million (the "Series 1998-1 Certificates") to the public. In 1999, all of the certificates publicly issued by the 1990 Trust were paid in full, the certificates issued to the Master Trust were cancelled, the 1990 Trust was terminated, and all of the Dealer Notes and related assets in the 1990 Trust were transferred to the Master Trust. On July 13, 2000, the Master Trust issued Class A and Class B certificates in the amount of $200.0 million and $12.0 million, respectively (the "Series 2000-1 Certificates"), to the public. On July 10, 2003, the Master Trust issued Class A and B certificates in the amount of $200.0 million and $12.0 million, respectively (the "Series 2003-1 Certificates"), to the public.
The Navistar Financial Dealer Note Master Owner Trust (the "Master Owner Trust") was formed pursuant to a Master Owner Trust Agreement, dated as of June 10, 2004, between NFSC and Chase Manhattan Bank USA, National Association, as Master Owner Trust Trustee (the "Master Owner Trust Trustee"). On June 10, 2004, the Master Trust issued a collateral certificate in the amount of $212.0 million to the Master Owner Trust, which accordingly issued Class A and B Notes in the amount of $200.0 million and $12.0 million, respectively (the "Series 2004-1 Notes"), to the public. On February 28, 2005, the balance of the collateral certificate was increased by $212.0 million, and the Master Owner Trust issued Class A and Class B Notes in the amount of $200.0 million and $12.0 million, respectively (the "Series 2005-1 Notes"), to the public.
On June 27, 2005, the Series 2000-1 Certificates were redeemed and paid in full.
On a daily basis, the Seller transfers Dealer Notes to the Master Trust and Dealer Notes in the Master Trust are collected, liquidated or charged off as uncollectible. Accordingly, the aggregate amount of Dealer Notes in the Master Trust will fluctuate from day to day as new Dealer Notes are generated and existing Dealer Notes are removed. The cash derived from proceeds of the issuance of certificates by the Master Trust (the "Investor Certificates") and collection on the Dealer Notes are transferred to the Seller provided that the Master Trust Seller's Interest is not less than the Minimum Master Trust Seller's Interest. Under the terms of the Master Trust Pooling and Servicing Agreement, the Seller is required to maintain a minimum investment in the Master Trust (the "Minimum Master Trust Seller's Interest"), a portion of which is subordinated to the Investor Certificates. If the amount of Dealer Notes in the Master Trust and funds held in specified accounts is less than the combined ownership interest evidenced by the Investor Certificates and Minimum Master Trust Seller's Interest, the Seller must transfer or retain additional funds ("Investment Securities") in specified accounts of the Master Trust to maintain NFSC's investment in the Master Trust (the "Master Trust Seller's Interest") at an amount not less the Minimum Master Trust Seller's Interest.
Item 2.
Item 2. Properties
Refer to schedule 13(b) for information regarding the Certificates.
Item 3.
Item 3. Legal Proceedings
The registrant knows of no material pending legal proceedings involving either the Dealer Notes or the trustees, or the Seller or Servicer in respect of the trusts.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted during the period of this report to a vote of the Certificateholders.
PART II
Item 5.
Item 5. Market for the Registrant's Common Equity and Related Stockholder Matters
There were 21 participants holding positions in the Certificates issued by the Master Owner Trust as of the end of the reporting year. There is no principal market in which such certificates are traded. The Master Owner Trust will not pay dividends in respect of the Certificates and, accordingly, the information required by Item 201 of Regulation S-K regarding dividends is inapplicable to the Trust.
Item 6.
Item 6. Selected Financial Data
None.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
As of October 31, 2005, the combined aggregate principal balance of Dealer Notes and Investment Securities was $1,364.1 million. Reference is made to Schedule 13 for additional information for their respective series regarding principal and interest payments with respect to the Investor Certificates and information regarding servicing compensation and other fees paid by the trust during the fiscal year.
As of October 31, 2005, the combined aggregate principal balance of Dealer Notes and Investment Securities allocated by the Master Trust to Investor Certificates and the Master Trust Seller's Interest was $1,356.4 million and $7.7 million, respectively.
Item 8.
Item 8. Financial Statements and Supplementary Data
None.
Item 9.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
Item 9A.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act was performed under the supervision and with the participation of our senior management, including our Chief Executive Officer and Chief Financial Officer. The purpose of disclosure controls and procedures is to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.
In NFC's 2005 Form 10-K, we disclosed eight material weaknesses. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.
Based on the material weaknesses identified below, our Chief Executive Officer and Chief Financial Officer concluded that, as of October 31, 2005, our disclosure controls and procedures were not effective. The following chart shows the material weaknesses identified and the filing where full remediation was discussed:
2005 Material Weakness Description
1. Control Environment: Management had not established a strong consciousness regarding the application of ethics across all areas of the Company and the importance of internal controls over financial reporting including adherence to generally accepted accounting principles. This weakness in the control environment likely contributed to many of the other material weaknesses we disclosed. As identified by an independent investigation initiated by Navistar, Inc's Board of Directors, certain members of management and other employees, in place at that time, were involved in instances of intentional misconduct.
Filing where full remediation is disclosed -July 31, 2008 Form 10-Q
2. Accounting Personnel: We did not have a sufficient number of accounting personnel with an appropriate level of accounting knowledge, experience and training in the application of generally accepted accounting principles ("GAAP"). This includes a previously identified material weakness, disclosed in fiscal 2004, which related to accounting for receivable securitization transactions. This weakness resulted in an inadequate segregation of duties and an insufficient review of information pertaining to securitization accounting. There was also a material weakness related to the accounting for allowance for losses. We did not maintain effective controls to properly account for the timing of losses associated with repossessed assets and the calculation of loss factors used in determining the allowance for losses. Specifically, we did not record the loss at the time that the repossession occurred and instead recorded the loss when the repossessed asset was sold.
Filing where full remediation is disclosed - October 31, 2007 Form 10-K
3. Accounting Policies and Procedures: We did not have a formalized process for monitoring, updating, disseminating, and implementing GAAP-compliant accounting policies and procedures. This includes a previously identified material weakness, disclosed in fiscal 2004 concerning a misapplication of GAAP related to securitization accounting and an associated lack of timely resolution of outstanding reconciling items in certain collection accounts.
Remediation ongoing - As of October 31, 2008 remediation related to Repossessed Vehicle Inventory Accounting Policies and Procedures remains on going. See October 31, 2008 Form 10-K for further discussion.
4. Internal Audit: We utilize Navistar's corporate internal audit department in lieu of having a separate department. Navistar's internal audit department was not an effective monitoring control over financial reporting for Navistar and its subsidiaries.
Filing where full remediation is disclosed - July 31, 2008 Form 10-Q
5. Information Technology (IT): Our IT general controls over computer program development, computer program changes, computer operations and system user access to programs and data were ineffectively designed. Additionally, we concluded that computer application controls were unreliable and ineffective.
Filing where full remediation is disclosed - October 31, 2008 Form 10-K
6. Pension Accounting: We utilize the services of the Navistar's corporate pension and benefits group to address our pension accounting needs. Navistar's corporate pension and benefits group did not maintain effective controls to accurately estimate the total entity pension and OPEB obligations. Specifically, the application of the methodology used to determine historical discount rates was not properly documented and reviewed and lacked proper support for other assumptions used in accounting for the obligations.
Filing where full remediation is disclosed - October 31, 2008 Form 10-K
7. Income Tax Accounting: We utilize the services of Navistar's corporate tax group to address our tax accounting needs. Navistar's corporate tax group did not retain detailed supporting documentation for our tax liabilities.
Filing where full remediation is disclosed - October 31, 2007 Form 10-K
8. Journal Entries: We did not maintain effective controls over review and approval of journal entries. Specifically, journal entries were not reviewed thoroughly and approved by the appropriate level of management to ensure the accuracy and appropriateness of the accounts used when entries were recorded.
Filing where full remediation is disclosed - October 31, 2008 Form 10-K
Changes in Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Over the last three years, NFC has taken numerous remediation actions, including but not limited to the following;
o Executives and senior management increased their communication about the importance of internal controls, ethics and acting with integrity across the company.
o We made leadership changes and increased our staff levels to strengthen our finance and accounting team.
o We established an Audit Committee specifically for Navistar Financial Corporation and appointed an independent member of the Board of Directors to chair the committee.
o We focused on updating and implementing GAAP-compliant accounting policies and procedures and increasing the formal and informal training of our finance and accounting team.
o We retained outside consultants with appropriate expertise and training to supplement our finance and accounting staff.
o Navistar, Inc. fully outsourced the internal audit function to an independent accounting firm.
o Under the guidance of Navistar, Inc's new Chief Information Officer ("CIO"), we adopted and implemented Control Objectives for Information and related Technology (COBIT®), a recognized industry standard control framework, as the foundation of our design of information technology ("IT") general controls.
o We reinforced our journal entry policy and procedures to our finance and accounting team through regular communications and training.
As of October 31, 2008, these actions, and those more fully described in our Control and Procedure disclosures included in the Securities and Exchange Commission filings referenced below, have remediated all but one of the material weaknesses identified in the Company's 2005 Form 10-K. Our leadership team continues to take the necessary actions to remediate our remaining material weakness and strengthen our internal control over financial reporting.
We believe the above measures have strengthened our accounting and financial reporting controls. We are committed to providing timely, thorough, and accurate financial reporting. Most importantly, prior to filing our fiscal year 2005 Annual Report on Form 10-K, we made significant efforts to review our financial results in light of the aforementioned weaknesses to conclude that the financial statements included herein fairly present, in all material respects, our financial position, results of operations, and cash flows for the periods presented in conformity with GAAP.
The following Controls and Procedures disclosures are incorporate by reference;
Navistar Financial Corporation 2005 Form 10-K, Commission file number 1-4146-1 Navistar Financial Corporation 2007 Form 10-K, Commission file number 1-4146-1 Navistar Financial Corporation 2008 Form 10-K, Commission file number 1-4146-1 Navistar Financial Corporation 2008 3Q Form 10-Q, Commission file number 1-4146-1
Item 9B.
Item 9B. Other Information
None
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
None.
Item 11.
Item 11. Executive Compensation
None.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Navistar Financial Corporation owns 100% of the Registrant's common stock.
Item 13.
Item 13. Certain Relationships and Related Transactions
None.
PART IV
Item 15.
Item 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) Exhibits
3 Articles of Incorporation and By-Laws 10 Material Contracts 31 Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 99.1 Management's Assertion Concerning Compliance. 99.2 Report of Independent Registered Public Accounting Firm 99.3 Officer's Compliance Certificate.
(b) Schedules
The Annual Summary of the Servicer and Settlement Certificates listed below is an annualized version of the monthly Servicer Certificates prepared by the Servicer.
Annual Summary 13(a) - Servicer and Settlement Certificates for Series 2004-1 and 2005-1. 13(b) - Dealer Note Master Owner Trust Series Data
(c) Reports on Form 8-K
The Registrant filed the following reports on Form 8-K during the three months ended October 31, 2005:
(i) Navistar Financial Dealer Note Master Owner Trust file the July Servicer and Settlement Certificates on Form 8-K dated September 6, 2005.
(ii) Navistar Financial Dealer Note Master Owner Trust filed the August Servicer and Settlement Certificates on Form 8-K dated October 5, 2005.
(iii) Navistar Financial Dealer Note Master Owner Trust filed the September Servicer and Settlement Certificates on Form 8-K dated November 2, 2005.
==================================================================================================================================== SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST (Exact name of Registrant as specified in its charter)
Date: January 30, 2009 By: /s/ DAVID L. DERFELT David L. Derfelt V. P., and Controller (Principal Accounting Officer)
==================================================================================================================================== Schedule 13(a)
ANNUAL SERVICER AND SETTLEMENT CERTIFICATE NAVISTAR FINANCIAL DEALER NOTE MASTER TRUST ASSET BACKED CERTIFICATES SERIES 2004-1
Under the Series 2004-1 Supplement dated as of June 10, 2004 (the "Supplement") by and among Navistar Financial Corporation, ("NFC"), Navistar Financial Securities Corporation ("NFSC") and The Bank of New York, as trustee (the "Master Trust Trustee") to the Pooling and Servicing Agreement dated as of June 8, 1995 (as amended and supplemented, the "Agreement") by and among NFC, NFSC, and the Master Trust Trustee, the Master Trust Trustee is required to prepare certain information each month regarding current distributions to certain accounts and payments to the Series 2004-1Certificateholders as well as the performance of the Master Trust during the previous month. An annual aggregation of such monthly reports for the period November 1, 2004 through October 31, 2005 with respect to distributions and performance of the Trust is set forth below. Certain of the information is presented on the basis of an original principal amount of $1,000 per Investor Certificate. Certain other information is presented based on the aggregate amounts for the Master Trust as a whole. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Agreement and the Supplement.
1 NFC is Servicer under the Agreement.
2 The undersigned is a Servicing Officer.
3 Master Trust Information November 1, 2004 through October 31, 2005.
3.1 The amount of the Advance, if any, for the Due Period 2,384,059.40
3.2 The amount of ITEC Finance Charges for the Due Period 42,739,563.21
3.3 The average daily balance of Dealer Notes outstanding during the Due Period 1,192,758,763.74
3.4 The total amount of Advance Reimbursements for the Due Period -
3.5 The aggregate principal amount of Dealer Notes repaid during the Due Period 4,807,396,823.07
3.6 The aggregate principal amount of Dealer Notes purchased by the Master Trust 5,043,316,973.95 during the Due Period
3.7 The amount of the Servicing Fee for the Due Period 12,052,425.86
3.8 The average daily Master Trust Seller's Interest during the Due Period 166,118,740.81
3.9 The Master Trust Seller's Interest as of the Distribution Date (after giving effect to the transactions set forth in Article IV of the Supplement) 178,070,000.00
3.10 The aggregate amount of Collections for the Due Period 5,837,208,231.95
3.11 The aggregate amount of Finance Charge Collections for the Due Period 89,831,746.99
3.12 The aggregate amount of Principal Collections for the Due Period 5,747,376,484.96
3.13 The amount of Dealer Note Losses for the Due Period
3.14 The aggregate amount of Dealer Notes as of the last day of the Due Period 1,356,347,047.19
3.15 The aggregate amount of funds on deposit in the Excess Funding Account as of the end of the last day of the Due Period (after giving effect to the transactions set forth in Article IV of the Supplement and Article IV of the Agreement) 7,861,714.09
3.16 Eligible Investments in the Excess Funding Account:
a. The aggregate amount of funds invested in Eligible Investments 7,722,952.81
b. Description of each Eligible Investment: JP Morgan Prime Money Market Fund
c. The rate of interest applicable to each such Eligible Investment 3.66%
d. The rating of each such Eligible Investment AAAm/Aaa
3.17 The aggregate amount of Dealer Notes issued to finance OEM Vehicles, as of the end of the Due Period 17,783,483.15
3.18 The Dealers with the five largest aggregate outstanding principal amounts of Dealer Notes in the Master Trust as of the end of the Due Period:
i)Chicago International ii) Lee-Smith Inc iii) Nally Motor Trks iv) Truck King Intl v) Southland Intl Trks
3.19 Aggregate amount of delinquent principal payments (past due greater than 30 days) as a percentage of the total principal amount outstanding, as of the end of the Due Period 0.07%
3.20 The aggregate amount of Dealer Notes issued to finance used vehicles, as of the end of the Due Period 65,060,226.26
3.21 The aggregate amount of funds on deposit in the Servicer Transition Fee Account as of the end of the last day of the Due Period (after giving effect to the transactions set forth in Article IV of the Supplement) 103,663.69
3.22 Eligible Investments in the Servicer Transition Fee Account:
a. The aggregate amount of funds invested in Eligible Investments 103,341.77
b. Description of each Eligible Investment: JP Morgan Prime Money Market Fund
c. The rate of interest applicable to each such Eligible Investment 3.66%
d. The rating of each such Eligible Investment AAAm/Aaa
3.23 The aggregate amount of funds on deposit in the Servicer Transition Fee Account as of the Distribution Date (after giving effect to the transactions set forth in Article IV of the Supplement and to the payments made on the Distribution Date) 100,000.00
4 Series 2004-1 Information November 1, 2004 through October 31, 2005.
4.1 The Invested Amount as of the Distribution Date (after giving effect to the transactions set forth in Article IV of the Supplement and to the payments made on the Distribution Date) 424,000,000.00
The Adjusted Invested Amount as of the Distibution Date (after giving effect to the transactions set forth 4.2 in Article IV of the Supplement and to the payments made on the Distribution Date) 462,160,000.00
4.3 The Amount of the Seller's Invested Amount for the Due Period 178,070,000.00
4.4 The amount of Series Allocable Dealer Notes Losses for the Due Period -
4.5 The amount of Series Allocable Finance Charge Collections for the Due Period 3,309,371.16
4.6 The amount of Series Allocable Principal Collections for the Due Period 152,920,038.07
4.7 The amount of Noteholder Allocated Dealer Note Losses for the Due Period -
4.8 The amount of Noteholder Available Interest Amounts for the Due Period 25,695,151.27
4.9 The amount of Noteholder Available Principal Amounts for the Due Period 1,559,732,774.36
4.10 The aggregate amount of the Principal Shortfall, if any for the Due Period -
4.11 The aggregate amount of Seller Interest Amounts for the Due Period 3,069,908.14
4.12 The aggregate amount of Seller's Principal Amounts for the Due Period 186,357,260.40
4.13 The Reassignment Amount as of the Transfer Date 424,000,000.00
4.14 The Minimum Series Seller's Invested Amount as of the Distribution Date (after giving effect to the transactions set forth in Article IV of the Supplement) 50,880,000.00
4.15 The Minimum Seller's Invested Amount as of the Distribution Date (after giving effect to the transaction set forth in Article IV of the Supplement) -
4.16 The Minimum Seller's Interest as of the Distribution Date (after giving effect to the transaction set forth in Article IV of the Supplement) 50,880,000.00
4.17 The Series Allocation Percentage with respect to Series 2004-1 for the Due Period 34.79%
4.18 The Noteholder Floating Allocation Percentage for the Due Period 89.34%
4.19 The Noteholder Principal Allocation Percentage, if applicable, for the Due Period 89.34%
4.20 The total amount to be distributed on the Series 2004-1 Certificates on the Distribution Date 16,040,839.34
4.21 The total amount, if any, to be distributed on the Series 2004-1 Certificates on the Distribution Date allocable to the Invested Amount -
4.22 The total amount, if any, to be distributed on the Series 2004-1 Certificates on the Distribution Date allocable to interest on the 2004-1 Certificates 12,066,109.33
4.23 The amount of the Investor Servicing Fee to be paid on such Distribution Date 351,293.08
4.24 The amount of Investment Income with respect to the Series 2004-1 Certificate for the Due Period 59,569.97
4.25 The amount of Excess Interest Collections for the Due Period 10,337,242.58
4.26 The amount of Excess Interest Collections for the Due Period allocated to other Series 68,695.21
4.27 The amount of Noteholder Available Principal Amounts treated as Shared Principal Collections for the Due Period 47,738,441.69
4.28 The amount of all Shared Principal Collections allocated to Series 2004-1 for the Due Period -
==================================================================================================================
NOTE STATEMENT NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST SERIES 2004-1 NOTES
Under the Series 2004-1 Indenture Supplement dated as of June 10, 2004 (the "Indenture Supplement") by and among the Navistar Financial Dealer Note Master Owner Trust (the "Master Owner Trust") and The Bank of New York, as trustee (the "Indenture Trustee"), the Indenture Trustee is required to prepare certain information each month regarding current distributions to certain accounts and payments on the Series 2004-1 Notes as well as the performance of the Master Owner Trust during the previous month. An annual aggregation of such monthly reports for the period November 1, 2004 through October 31, 2005 with respect to distributions an performance of the Trust is set forth below. Certain of the information is presented on the basis of an original principal amount of $1,000 per Note. Certain other information is presented based on the aggregate amounts for the Master Owner Trust as a whole. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Indenture Supplement.
5 Series 2004-1 Notes Information November 1, 2004 through October 31, 2005.
5.1 Series 2004-1 Nominal Liquidation Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2004-1 Indenture Supplement and to payments made on the Payment Date). 212,000,000.00
5.1.1 Cummulative Reductions (Net of Reinstatements) of the Series 2004-1 Nominal Liquidation Amount, if any, as of the Transfer Date -
5.2 Series 2004-1 Collateral Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2004-1 Indenture Supplement and to payments made on the Payment Date 231,080,000.00
5.3 Series 2004-1 Overcollateralization Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2004-1 Indenture Supplement and to payments made on the Payment Date) 19,080,000.00
5.3.1 Series 2004-1 Target Overcollateralization Amount, if any, as of the Transfer Date 19,080,000.00
5.3.2 Cummulative Reductions (Net of Reinstatements) of the Series 2004-1 Overcollateralization Amount Deficiency, if any, as of the Transfer Date -
5.4 Series 2004-1 Allocated Dealer Note Losses for the Due Period -
5.5 Series 2004-1 Allocated Interest Amounts for the Due Period 14,531,170.26
5.6 Series 2004-1 Allocated Principal Amounts for the Due Period 904,360,253.80
5.7 Series 2004-1 Noteholders Allocated Dealer Note Losses for the Due Period -
5.8 Series 2004-1 Available Interest Amounts with respect to the Due Period 14,985,493.88
5.9 Series 2004-1 Available Principal Amounts with respect to the Due Period 904,360,253.80
5.10 Shortfall in Series Available Principal Amounts, if any, for the Due Period -
5.11 Sellers Invested Amount for the Series 2004-1 Notes for the Due Period 25,440,000.00
5.12 Shortfall in Series Available Interest Amounts, if any, for the Due Period -
5.13 Unreimbursed reductions to the Series 2004-1 Collateral Amount, if any, for the Due Period -
5.14 Nominal Liquidation Amount plus Accrued and Unpaid Interest as of the Transfer Date 212,000,000.00
5.15 Series 2004-1 Required Seller's Invested Amount as of the Payment Date 25,440,000.00
5.16 Series 2004-1 Controlled Accumulation Amount, if any, for the Due Period -
5.17 Series 2004-1 Controlled Deposit Amount, if any, for the Due Period -
5.18 Series Variable Allocation Percentage for the Due Period 50.00%
5.19 Series Fixed Allocation Percentage for the Due Period 50.00%
5.20 Total amount to be distributed on the Series 2004-1 Notes on the Payment Date 9,298,781.26
5.21 Total amount, if any, to be distributed on the Series 2004-1 Notes on the Payment Date allocable to the Outstanding Principal Amount -
5.22 Total amount to be distributed on the Series 2004-1 Notes on the Payment Date allocable to interest on the Series 2004-1 Notes 7,111,352.95
5.23 Series 2004-1 Servicing Fee to be paid on the Payment Date 2,187,428.31
5.24.1 Series 2004-1 Investment Income 389,109.41
5.24.2 Series 2004-1 Principal Funding Account investment income -
5.24.3 Series 2004-1 Negative Carry Account investment income -
5.24.4 Series 2004-1 Interest Funding Account investment income -
5.24.5 Series 2204-1 Spread Account investment income 65,214.20
5.25 Series Excess Available Amounts for the Due Period 5,686,712.62
5.26 Excess Available Interest Amounts for the Due Period allocated to other Series of Notes -
5.27 Excess Available Interest Amounts for the Due Period allocated to Series of Investor Certificates -
5.28 Excess Available Principal Collections allocated from other series of Notes to Series 2004-1 for the Due Period -
5.29 Amount of Shared Principal Collections allocated to Series 2004-1 for the Due Period 47,738,441.69
5.30 Amount of Excess Available Principal Collections allocated to other Series of Notes for the Due Period -
5.31 Cash Collateral Percentage as of the Transfer Date 0.58%
5.32 Mismatch Amount for the Series 2004-1 Notes for the Due Period -
5.33 Reimbursement Amount for the Series 2004-1 Notes for the Due Period -
5.34 Certain amounts and calculations referenced in the definition of Early Redemption Event See Exhibit "A"
6 Account Information November 1, 2004 through October 31, 2005.
6.1 Series 2004-1 Spread Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date 2,650,000.00
6.1.1 Series 2004-1 Spread Account Required Amount, if any, as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment 2,650,000.00
6.2 Series 2004-1 Principal Funding Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
6.3 Series 2004-1 Negative Carry Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
6.3.1 Series 2004-1 Required Negative Carry Account Balance, if any, as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
6.4 Series 2004-1 Interest Funding Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
7 Class A Notes Information November 1, 2004 through October 31, 2005.
7.1 Class A Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date 200,000,000.00
7.2 Class A Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date 200,000,000.00
7.3 Total amount to be distributed on the Class A Notes on the Payment Date 6,637,465.05
7.4 Total amount, if any, to be distributed on the Class A Notes on the Payment Date allocable to the Class A Outstanding Principal Amount -
7.5 Total amount to be distributed on the Class A Notes on the Payment Date allocable interest on the Class A Notes 6,637,465.05
7.6 Class A Monthly Interest for the Interest Period 553,122.09
8 Class B Notes Information November 1, 2004 through October 31, 2005.
8.1 Class B Outstanding Principal Amount as of the Payment Date After giving effect to the transactions made on such Payment Date 12,000,000.00
8.2 Class B Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date 12,000,000.00
8.3 Total amount to be distributed on the Class B Notes on the Payment Date 473,887.89
8.4 Total amount, if any, to be distributed on the Class B Notes on the Payment Date Allocable to the Class B Outstanding Principal Amount -
8.5 Total amount to be distributed on the Class B Notes on the Payment Date allocable interest on the Class B Notes 473,887.89
8.6 Class B Monthly Interest for the Interest Period 39,490.66
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NOTE STATEMENT NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST SERIES 2005-1 NOTES
Under the Series 2005-1 Indenture Supplement dated as of February 28, 2005 (the "Indenture Supplement") by and among the Navistar Financial Dealer Note Master Owner Trust (the "Master Owner Trust") and The Bank of New York, as trustee (the "Indenture Trustee"), the Indenture Trustee is required to prepare certain information each month regarding current distributions to certain accounts and payments on the Series 2005-1 Notes as well as the performance of the Master Owner Trust during the previous month. An annual aggregation of such monthly reports for the period February 28, 2005 through October 31, 2005 with respect to distributions an performance of the Trust is set forth below. Certain of the information is presented on the basis of an original principal amount of $1,000 per Note. Certain other information is presented based on the aggregate amounts for the Master Owner Trust as a whole. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Indenture Supplement.
5 Series 2005-1 Notes Information February 28, 2005 through October 31, 2005.
5.1 Series 2005-1 Nominal Liquidation Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2005-1 Indenture Supplement and to payments made on the Payment Date). 212,000,000.00
5.1.1 Cummulative Reductions (Net of Reinstatements) of the Series 2005-1 Nominal Liquidation Amount, if any, as of the Transfer Date -
5.2 Series 2005-1 Collateral Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2005-1 Indenture Supplement and to payments made on the Payment Date 231,080,000.00
5.3 Series 2005-1 Overcollateralization Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2005-1 Indenture Supplement and to payments made on the Payment Date) 19,080,000.00
5.3.1 Series 2005-1 Target Overcollateralization Amount, if any, as of the Transfer Date 19,080,000.00
5.3.2 Cummulative Reductions (Net of Reinstatements) of the Series 2005-1 Overcollateralization Amount Deficiency, if any, as of the Transfer Date -
5.4 Series 2005-1 Allocated Dealer Note Losses for the Due Period -
5.5 Series 2005-1 Allocated Interest Amounts for the Due Period 11,163,981.01
5.6 Series 2005-1 Allocated Principal Amounts for the Due Period 655,372,520.56
5.7 Series 2005-1 Noteholders Allocated Dealer Note Losses for the Due Period -
5.8 Series 2005-1 Available Interest Amounts with respect to the Due Period 11,508,170.61
5.9 Series 2005-1 Available Principal Amounts with respect to the Due Period 655,372,520.56
5.10 Shortfall in Series Available Principal Amounts, if any, for the Due Period -
5.11 Sellers Invested Amount for the Series 2005-1 Notes for the Due Period 25,440,000.00
5.12 Shortfall in Series Available Interest Amounts, if any, for the Due Period -
5.13 Unreimbursed reductions to the Series 2005-1 Collateral Amount, if any, for the Due Period -
5.14 Nominal Liquidation Amount plus Accrued and Unpaid Interest as of the Transfer Date 212,000,000.00
5.15 Series 2005-1 Required Seller's Invested Amount as of the Payment Date 25,440,000.00
5.16 Series 2005-1 Controlled Accumulation Amount, if any, for the Due Period -
5.17 Series 2005-1 Controlled Deposit Amount, if any, for the Due Period -
5.18 Series Variable Allocation Percentage for the Due Period 50%
5.19 Series Fixed Allocation Percentage for the Due Period 50%
5.20 Total amount to be distributed on the Series 2005-1 Notes on the Payment Date 7,150,427.44
5.21 Total amount, if any, to be distributed on the Series 2005-1 Notes on the Payment Date allocable to the Outstanding Principal Amount -
5.22 Total amount to be distributed on the Series 2005-1 Notes on the Payment Date allocable to interest on the Series 2005-1 Notes 5,511,534.35
5.23 Series 2005-1 Servicing Fee to be paid on the Payment Date 1,638,893.09
5.24.1Series 2005-1 Investment Income 297,302.24
5.24.2Series 2005-1 Principal Funding Account investment income -
5.24.3Series 2005-1 Negative Carry Account investment income -
5.24.4Series 2005-1 Interest Funding Account investment income -
5.24.5Series 2204-1 Spread Account investment income 46,887.35
5.25 Series Excess Available Amounts for the Due Period 4,357,743.17
5.26 Excess Available Interest Amounts for the Due Period allocated to other Series of Notes -
5.27 Excess Available Interest Amounts for the Due Period allocated to Series of Investor Certificates -
5.28 Excess Available Principal Collections allocated from other series of Notes to Series 2005-1 for the Due Period -
5.29 Amount of Shared Principal Collections allocated to Series 2005-1 for the Due Period 47,738,441.69
5.30 Amount of Excess Available Principal Collections allocated to other Series of Notes for the Due Period -
5.31 Cash Collateral Percentage as of the Transfer Date 0.58%
5.32 Mismatch Amount for the Series 2005-1 Notes for the Due Period -
5.33 Reimbursement Amount for the Series 2005-1 Notes for the Due Period -
5.34 Certain amounts and calculations referenced in the definition of Early Redemption Event See Exhibit "A"
6 Account Information February 28, 2005 through October 31, 2005.
6.1 Series 2005-1 Spread Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date 2,650,000.00
6.1.1 Series 2005-1 Spread Account Required Amount, if any, as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment 2,650,000.00
6.2 Series 2005-1 Principal Funding Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
6.3 Series 2005-1 Negative Carry Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
6.3.1 Series 2005-1 Required Negative Carry Account Balance, if any, as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
6.4 Series 2005-1 Interest Funding Account Balance as of the Payment Date after giving effect to all withdrawls and deposits made on such Payment Date -
7 Class A Notes Information February 28, 2005 through October 31, 2005.
7.1 Class A Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date 200,000,000.00
7.2 Class A Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date 200,000,000.00
7.3 Total amount to be distributed on the Class A Notes on the Payment Date 5,168,145.61
7.4 Total amount, if any, to be distributed on the Class A Notes on the Payment Date allocable to the Class A Outstanding Principal Amount -
7.5 Total amount to be distributed on the Class A Notes on the Payment Date allocable interest on the Class A Notes 5,168,145.61
7.6 Class A Monthly Interest for the Interest Period 430,678.80
8 Class B Notes Information February 28, 2005 through October 31, 2005.
8.1 Class B Outstanding Principal Amount as of the Payment Date After giving effect to the transactions made on such Payment Date 12,000,000.00
8.2 Class B Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date 12,000,000.00
8.3 Total amount to be distributed on the Class B Notes on the Payment Date 343,388.74
8.4 Total amount, if any, to be distributed on the Class B Notes on the Payment Date Allocable to the Class B Outstanding Principal Amount -
8.5 Total amount to be distributed on the Class B Notes on the Payment Date allocable interest on the Class B Notes 343,388.74
8.6 Class B Monthly Interest for the Interest Period 28,615.73
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Exhibit "A" Series 2004-1 Notes
5.34 The percentages and all other information calculated pursuant to the Definitions at Early Redemption Events as specified in Section 1.01 of The Series 2004-1 Indenture Supplement
"Early Redemption Events" means, with respect to the Series 2004-1 Notes, each of the Early Amortization Events specified in Section 9.01 of the Pooling and Servicing Agreement, as supplemented by the Series Supplement, plus each of the following:
(A) failure on the part of the Seller (i) to make any payment, distribution or deposit under the Pooling and Servicing Agreement or the Series Supplement within five Business Days after the Due Date or (ii) to observe or perform in any material respect any other material covenants or agreements of the Seller, which failure has a material adverse effect on the Series 2004-1 Noteholders and which continues unremedied for a period of 60 days after written notice of such failure shall have been given to the Seller by the Indenture Trustee or to the Seller and the Indenture Trustee by any Holder of the Series 2004-1 Notes;__No__
(B) any representation or warranty made by the Seller pursuant to the Pooling and Servicing Agreement or any information contained in the schedule of Dealer Notes delivered thereunder or the Series Supplement shall prove to have been incorrect in any material respect when made or when delivered, which representation, warranty or schedule, or the circumstances or condition that caused such representation, warranty or schedule to be incorrect, continues to be incorrect or uncured in any material respect for a period of 60 days after written notice of such incorrectness shall have been given to the Seller by the Indenture Trustee or to the Seller and the Indenture Trustee by any Holder of the Series 2004-1 Notes and as a result of which the interests of the Series 2004-1 Noteholders are materially and adversely affected, provided, however, that an Early Redemption Event shall not be deemed to occur if the Seller has repurchased the related Dealer Notes or all such Dealer Notes, if applicable, during such period in accordance with the provisions of the Pooling and Servicing Agreement; __No__
(C) any of the Seller, ITEC, NIC or NFC Shall file a petition commencing a voluntary case under any chapter of the federal bankruptcy laws; or the Seller or NFC shall file a petition or answer or consent seeking reorganization, arrangement, adjustment or composition under any other similar applicable federal law, or shall consent to the filing of any such petition, answer or consent; or the Seller, ITEC, NIC or NFC shall appoint, or consent to the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of it or of any substantial part of its property; or the Seller, ITEC, NIC or NFC shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due; __No__
(D) any order for relief against any of the Seller, ITEC, NIC or NFC shall have been entered by a court having jurisdiction in the premises under any chapter of the federal bankruptcy laws, and such order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order by a court having jurisdiction in the premises shall have been entered approving as properly filed a petition seeking reorganization, arrangement, adjustment, or composition of the Seller, ITEC, NIC or NFC under any other similar applicable federal law, and such decree or order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order of a court having jurisdiction in the premises for the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of the Seller, ITEC, NIC or NFC of any substantial part of their property, or for the winding up or liquidation of their affairs, shall have been entered, and such decree or order shall have remained in force undischarged or unstayed for a period of 120 days; __No__
(E) the Seller shall become legally unable for any reason to transfer Dealer Notes to the Master Trust in accordance with the provisions of the Pooling and Servicing Agreement; __No__
(F) on any Transfer Date, after giving effect to allocations to be made on that Transfer Date (including payments to be made on the related Payment Date), the Series 2004-1 Target Overcollateralization Amount exceeds the Series 2004-1 Overcollateralization Amount by more than the Series 2004-1 Overcollateralization Amount Shortfall Trigger; provided, however, that if such shortfall was caused by an Excess Cash Collateral Event, the Seller shall have a six month period during which an Early Redemption Event shall not occur if the foregoing condition is satisfied by calculating the Series 2004-1 Nominal Liquidation Amount after subtracting the amount on deposit in the Series 2004-1 Principal Funding Account in respect of the Series 2004-1 Notes; __No__
(G) any Servicer Termination Event shall occur (i) which would have a material adverse adverse effect on the Series 2004-1 Noteholders and (ii) for which the Servicer has received a notice of termination; __No__
(H) on any Determination Date, as of the last day of the preceding Due Period, the aggregate principal balance amount of Dealer Notes owned by the Master Trust relating to used vehicles exceeds 25% of the aggregate principal balance of Dealer Notes held by the Master Trust on that last day; Aggregate Principal Dealer Note Balance which was advanced against Financed Vehicles which are Used Vehicles exceeds 25% of the Aggregate Principal Balance of all Dealer Notes?__No__
Used Financed Vehicle Ratio: 4.69%
(I) on any Determination Date, the quotient of (i) the product of (a) the sum of Dealer Note Collections for each of the related Due Period and the two immediately preceding Due Periods and (b) four, divided by (ii) the daily average principal amount of Dealer Notes outstanding during such Due Periods ("Turnover") is less than 1.7;
Turnover Ratio less than 1.7? __No__ Turnover Ratio: 4.32
(J) the Series 2004-1 Outstanding Principal Amount is not repaid by the Expected Principal Payment Date;__No__
(K) the Issuer becomes an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and is not exempt from compliance with that Act;__No__
(L) the occurrence of an Event of Default under the Indenture; __No__
(M) the delivery by the Seller to the Master Trust Trustee of a notice stating that the Seller shall no longer continue to sell Dealer Notes to the Master Trust commencing on the date specified in such notice; __No__
(N) the Average Coverage Differential shall be equal to or less than negative two percent (-2%) on each of three consecutive Determination Dates; Average Coverage Differential shall be equal to or less than negative Two percent (-2.00%) on each of three consecutive Determination Dates? __No__
2 Months Past:3.18% 1 Month Past: 3.56% Current Month:3.50%
(O) on any Determination Date, the quotient of (i) the sum of Dealer Note Losses for each of the related Due Period and the five immediately preceding Due Periods and (ii) the sum of Principal Collections for each of the related Due Period and the five immediately preceding Due Periods, is greater than or equal to one percent (1%);
Dealer Note Loss Ratio greater than or equal to one percent (1.00%)?__No__
Dealer Note Loss Ratio: 0.00%
(P) at the end of any Due Period, the Seller's Invested Amount is reduced to an amount less than the Minimum Seller's Invested Amount and the Seller has failed to assign additional Dealer Notes to the Master Trust or deposit cash into the Excess Funding Account, the Series 2004-1 Principal Funding Account or any other principal funding account with respect to any other series in the amount of such deficiency within ten Business Days following the end of such Due Period; provided, however, that if such deficiency was caused by an Excess Cash Collateral Event, the Seller shall have a six month period during which an Early Redemption Event shall not occur if the foregoing condition is satisfied by calculating the Series 2004-1 Nominal Liquidation Amount after subtracting the amount on deposit in the Series 2004-1 Principal Funding Account in respect of the Series 2004-1 Notes; and __No__
(Q) failure on the part of ITEC to make a deposit in the Interest Deposit Account required by the terms of the Interest Deposit Agreement on or before the date occurring five Business Days after the date such deposit is required by the Interest Deposit Agreement to be made __No__
In the case of any event described in clauses (A), (B) or (G) above, an Early Redemption Event with respect to Series 2004-1 Notes shall be deemed to have occurred only if, after the applicable grace period described in those clauses, if any, either the Indenture Trustee or Series 2004-1 Noteholders holding Series 2004-1 Notes evidencing more than 50% of the Series 2004-1 Outstanding Principal Amount by written notice to the Seller, the Servicer, the Master Trust Trustee and, if given by Series 2004-1 Noteholders, the Indenture Trustee, declare that an Early Redemption Event has occurred as of the date of that notice. In the case of any Early Redemption Event that is also an Early Amortization Event as described in the Series Supplement or any event other than clauses (A), (B) or (G) described above, an Early Redemption Event with respect to the Series 2004-1 Notes shall be deemed to have occurred without any notice or other action on the part of the Indenture Trustee or the Series 2004-1 Noteholders immediately upon the occurrence of that event.
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Exhibit "A" Series 2005-1 Notes
5.34 The percentages and all other information calculated pursuant to the Definitions at Early Redemption Events as specified in Section 1.01 of The Series 2005-1 Indenture Supplement.
"Early Redemption Events" means, with respect to the Series 2005-1 Notes, each of the Early Amortization Events specified in Section 9.01 of the Pooling and Servicing Agreement, as supplemented by the Series Supplement, plus each of the following:
(A) failure on the part of the Seller (i) to make any payment, distribution or deposit required under the Pooling and Servicing Agreement or the Series Supplement within five Business Days after the Due Date or (ii) to observe or perform in any material respect any other material covenants or agreements of the Seller, which failure has a material adverse effect on the Series 2005-1 Noteholders and which continues unremedied for a period of 60 days after written notice of such failure shall have been given to the Seller by the Indenture Trustee or to the Seller and the Indenture Trustee by any Holder of the Series 2005-1 Notes; __No__
(B) any representation or warranty made by the Seller pursuant to the Pooling and Servicing Agreement or any information contained in the schedule of Dealer Notes delivered thereunder or the Series Supplement shall prove to have been incorrect in any material respect when made or when delivered, which representation, warranty or schedule, or the circumstances or condition that caused such representation, warranty or schedule to be incorrect, continues to be incorrect or uncured in any material respect for a period of 60 days after written notice of such incorrectness shall have been given to the Seller by the Indenture Trustee or to the Seller and the Indenture Trustee by any Holder of the Series 2005-1 Notes and as a result of which the interests of the Series 2005-1 Noteholders are materially and adversely affected, provided, however, that an Early Redemption Event shall not be deemed to occur if the Seller has repurchased the related Dealer Notes or all such Dealer Notes, if applicable, during such period in accordance with the provisions of the Pooling and Servicing Agreement; __No__
(C) any of the Seller, ITEC, NIC or NFC shall file a petition commencing a voluntary case under any chapter of the federal bankruptcy laws; or the Seller or NFC shall file a petition or answer or consent seeking reorganization, arrangement, adjustment or composition under any other similar applicable federal law, or shall consent to the filing of any such petition, answer or consent; or the Seller, ITEC, NIC or NFC shall appoint, or consent to the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of it or of any substantial part of its property; or the Seller, ITEC, NIC or NFC shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due; __No__
(D) any order for relief against any of the Seller, ITEC, NIC or NFC shall have been entered by a court having jurisdiction in the premises under any chapter of the federal bankruptcy laws, and such order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order by a court having jurisdiction in the premises shall have been entered approving as properly filed a petition seeking reorganization, arrangement, adjustment, or composition of the Seller, ITEC, NIC or NFC under any other similar applicable federal law, and such decree or order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order of a court having jurisdiction in the premises for the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of the Seller, ITEC, NIC or NFC of any substantial part of their property, or for the winding up or liquidation of their affairs, shall have been entered, and such decree or order shall have remained in force undischarged or unstayed for a period of 120 days; __No__
(E) the Seller shall become legally unable for any reason to transfer Dealer Notes to the Master Trust in accordance with the provisions of the Pooling and Servicing Agreement; __No__
(F) on any Transfer Date, after giving effect to allocations to be made on that Transfer Date (including payments to be made on the related Payment Date), the Series 2005-1 Target Overcollateralization Amount exceeds the Series 2005-1 Overcollateralization Amount by more than the Series 2005-1 Overcollateralization Amount Shortfall Trigger; provided, however, that if such shortfall was caused by an Excess Cash Collateral Event, the Seller shall have a six month period during which an Early Redemption Event shall not occur if the foregoing condition is satisfied by calculating the Series 2005-1 Nominal Liquidation Amount after subtracting the amount on deposit in the Series 2005-1 Principal Funding Account in respect of the Series 2005-1 Notes;__No__
(G) any Servicer Termination Event shall occur (i) which would have a material adverse effect on the Series 2005-1 Noteholders and (ii) for which the Servicer has received a notice of termination; __No__
(H) on any Determination Date, as of the last day of the preceding Due Period, the aggregate principal balance amount of Dealer Notes owned by the Master Trust relating to used vehicles exceeds 25% of the aggregate principal balance of Dealer Notes held by the Master Trust on that last day; Aggregate Principal Dealer Note Balance which was advanced against Financed Vehicles which are Used Vehicles exceeds 25% of the aggregate Principal Balance of all Dealer Notes? __No__
Used Financed Vehicle Ratio: 4.69%
(I) on any Determination Date, the quotient of (i) the product of (a) the sum of Dealer Note Collections for each of the related Due Period and the two immediately preceding Due Periods and (b) four, divided by (ii) the daily average principal amount of Dealer Notes outstanding during such Due Periods ("Turnover") is less than 1.7;
Turnover Ratio less than 1.7? __No__ Turnover Ratio: 4.32
(J) the Series 2005-1 Outstanding Principal Amount is not repaid by the Expected Principal Payment Date;__No__
(K) the Issuer becomes an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and is not exempt from compliance with that Act; __No__
(L) the occurrence of an Event of Default under the Indenture; __No__
(M) the delivery by the Seller to the Master Trust Trustee of a notice stating that the Seller shall no longer continue to sell Dealer Notes to the Master Trust commencing on the date specified in such notice; __No__
(N) the Average Coverage Differential shall be equal to or less than negative two percent (-2%) on each of three consecutive Determination Dates; Average Coverage Differential shall be equal to or less than negative Two percent (-2.00%) on each of three consecutive Determination Dates? __No__
2 Months Past:3.18% 1 Month Past: 3.56% Current Month:3.50%
(O) on any Determination Date, the quotient of (i) the sum of Dealer Note Losses for each of the related Due Period and the five immediately preceding Due Periods and (ii) the sum of Principal Collections for each of the related Due Period and the five immediately preceding Due Periods, is greater than or equal to one percent (1%); Dealer Note Loss Ratio greater than or equal to one percent (1.00%)? __No__
Dealer Note Loss Ratio: 0.00%
(P) at the end of any Due Period, the Seller's Invested Amount is reduced to an amount less than the Minimum Seller's Invested Amount and the Seller has failed to assign additional Dealer Notes to the Master Trust or deposit cash into the Excess Funding Account, the Series 2005-1 Principal Funding Account or any other principal funding account with respect to any other series in the amount of such deficiency within ten Business Days following the end of such Due Period; provided, however, that if such deficiency was caused by an Excess Cash Collateral Event, the Seller shall have a six month period during which an Early Redemption Event shall not occur if the foregoing condition is satisfied by calculating the Series 2005-1 Nominal Liquidation Amount after subtracting the amount on deposit in the Series 2005-1 Principal Funding Account in respect of the Series 2005-1 Notes; and __No__
(Q) failure on the part of ITEC to make a deposit in the Interest Deposit Account required by the terms of the Interest Deposit Agreement on or before the date occurring five Business Days after the date such deposit is required by the Interest Deposit Agreement to be made __No__
In the case of any event described in clauses (A), (B) or (G) above, an Early Redemption Event with respect to Series 2005-1 Notes shall be deemed to have occurred only if, after the applicable grace period described in those clauses, if any, either the Indenture Trustee or Series 2005-1 Noteholders holding Series 2005-1 Notes evidencing more than 50% of the Series 2005-1 Outstanding Principal Amount by written notice to the Seller, the Servicer, the Master Trust Trustee and, if given by Series 2005-1 Noteholders, the Indenture Trustee, declare that an Early Redemption Event has occurred as of the date of that notice. In the case of any Early Redemption Event that is also an Early Amortization Event as described in the Series Supplement or any event other than clauses (A), (B) or (G) described above, an Early Redemption Event with respect to the Series 2005-1 Notes shall be deemed to have occurred without any notice or other action on the part of the Indenture Trustee or the Series 2005-1 Noteholders immediately upon the occurrence of that event.
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Schedule 13 (b) Dealer Note Master Owner Trust Series Data Fiscal Year 2005 (11/01/2004 - 10/31/2005)
Series Series Description 2004-1 2005-1 Total ----------------------------------------------------------------- 1 Aggregate amount of Collections 918,891,424.06 666,536,501.58 1,585,427,925.63 Allocated Interest Amounts for the Due Period 14,531,170.26 11,163,981.01 25,695,151.27 Allocated Principal Amounts for the Due Period 904,360,253.80 655,372,520.56 1,559,732,774.36 Allocation From / (To) Other Series - - - - 2 Series Fixed Allocation Percentage for the Due Period 0.50 0.50 1.00 Series Variable Allocation Percentage for the Due Period 0.50 0.50 NA Principal Allocation Percentage N/A N/A NA
3 Total amount distributed (without Servicing Fee) 7,111,352.95 5,511,534.35 12,622,887.30
4 Total amount of such distribution allocable to the Outstanding Principal Amount - - -
5 Total amount of such distribution allocable to interest on the Series Notes 7,111,352.95 5,511,534.35 12,622,887.30
6 Series Allocated Dealer Note Losses - - -
7 Recoveries on Dealer Note Losses - - -
8 Amount of Series Allocated Dealer Note Losses/(Recoveries) - - - - Noteholder portion of Dealer Note Losses/(Recoveries) - - - - Seller portion of Dealer Note Losses/(Recoveries) - - -
9 Draw Amount N/A N/A N/A - - - 10 Investor Charge Offs N/A N/A N/A - - - 11 Reimbursement of Investor Charge Offs N/A N/A N/A
12 Monthly Servicing Fee - Series Allocation - Servicing Fee 182,285.69 182,099.23 364,384.92 - Noteholder Servicing Fee 162,831.61 162,663.63 325,495.24 - Seller Servicing Fee 19,454.08 19,435.60 38,889.68
13 Controlled Accumulation Amount - - -
14 Nominal Liquidation Amount prior to Distribution Date 212,000,000.00 212,000,000.00 424,000,000.00 Nominal Liquidation Amount after Distribution Date 212,000,000.00 212,000,000.00 424,000,000.00
15 Nominal Liquidation Amount 212,000,000.00 212,000,000.00 424,000,000.00 Overcollateralization Amount 19,080,000.00 19,080,000.00 38,160,000.00 Negative Carry Account Balance - - - Other - - - Collateral Amount 231,080,000.00 231,080,000.00 462,160,000.00
Required Excess Seller's Interest N/A N/A N/A
16 Beginning Spread Account Balance 2,650,000.00 2,650,000.00 5,300,000.00 Withdrawals from Spread Account (-) Interest (7,978.06) (7,985.17) (15,963.23) Deposits to Spread Account (+) Interest 7,978.06 7,985.17 15,963.23 Spread Account Balance as of the close of business on the Distribution date 2,650,000.00 2,650,000.00 5,300,000.00
17 Series Principal Funding Account Balance - - -
18 Delinquency on Serviced Portfolio 30 - 59 Days 0.02% 60 - 89 Days 0.00% 90+ Days 0.05%
19 Master Owner Trust Receivables Balance $0.00 Master Trust Receivables Balance $1,356,347,047.19
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