[Letterhead of Richards, Layton & Finger, P.A.]
September 18, 2019
To The Persons Listed
On Schedule A Attached Hereto
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Re: |
BMW Vehicle Owner Trust 2019-A
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Ladies and Gentlemen:
We have acted as special Delaware counsel to BMW Vehicle Owner Trust 2019-A, a Delaware statutory trust (the
“Trust”), in connection with the transactions contemplated by the Trust Agreement, dated as of July 15, 2019, as amended and restated by the Amended and Restated Trust Agreement, dated as of September 18, 2019 (as amended and restated, the “Trust
Agreement”), between Wilmington Trust, National Association, a national banking association, as owner trustee (the “Owner Trustee”), and BMW FS Securities LLC, a Delaware limited liability company, as depositor (the “Depositor”). This opinion is
being delivered pursuant to your request. Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in in the Trust Agreement, except that reference herein to any document shall mean such document as in
effect on the date hereof.
We have examined originals or copies of the following documents:
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(b) |
the Administration Agreement;
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(c) |
the Sale and Servicing Agreement;
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(e) |
the Asset Representations Review Agreement (the documents in paragraphs (b) through (e) are collectively referred to herein as the “Trust Documents”);
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(f) |
the Notes issued on the date hereof;
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(g) |
the Trust Certificates;
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To The Persons Listed
On Schedule A Attached Hereto
September 18, 2019
Page 2
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(h) |
a certified copy of the certificate of trust (the “Certificate of Trust”) of the Trust which was filed with the Secretary of State of the State of Delaware (the
“Secretary of State”) on July 15, 2019; and
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(i) |
a Certificate of Good Standing for the Trust, dated September 17, 2019, obtained from the Secretary of State.
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We have not reviewed any documents other than the foregoing documents for purposes of rendering our opinions as
expressed herein. In particular, we have not reviewed any document (other than the foregoing documents) that is referred to in or incorporated by reference into any document reviewed by us. We have assumed that there exists no provision of any
such other document that bears upon or is inconsistent with our opinions as expressed herein. We have conducted no independent factual investigation of our own but have relied solely upon the foregoing documents, the statements and information
set forth therein and the additional matters recited or assumed herein, all of which we have assumed to be true, complete and accurate in all material respects.
Based upon the foregoing and upon an examination of such questions of law as we have deemed necessary or
appropriate, and subject to the assumptions, exceptions and qualifications set forth herein, we advise you that, in our opinion:
1. The Trust has been duly formed and is validly existing and in good standing as a statutory trust under the Delaware Statutory Trust Act, 12 Del. C. § 3801, et seq. (the “Act”), and has the
power and authority under the Trust Agreement and the Act to execute, deliver and perform its obligations under the Trust Documents and to issue the Notes and the Trust Certificates.
2. The Trust Documents and the Notes, and the performance by the Trust thereunder, have been duly authorized and the Trust Documents and the Notes have been duly executed and delivered by the
Trust.
3. The Trust Agreement is a legal, valid and binding obligation of the Depositor and the Owner Trustee, enforceable against the Depositor and the Owner Trustee, in accordance with its terms.
4. Neither the execution, delivery and performance by the Trust of the Trust Documents, nor the consummation by the Trust of any of the transactions contemplated thereby, requires the consent
or approval of, the withholding of objection on the part of, the giving of notice to, the filing, registration or qualification with, or the taking of any other action in respect of, any governmental authority or agency of the State of Delaware,
other than the filing of the Certificate of Trust and any UCC financing statements with the Secretary of State.
5. Neither the execution, delivery and performance by the Trust of the Trust Documents, nor the consummation by the Trust of the transactions contemplated thereby, is in
To The Persons Listed
On Schedule A Attached Hereto
September 18, 2019
Page 3
violation of the Trust Agreement or of any law, rule or regulation of the State of Delaware applicable to the Trust.
6. Under § 3805(b) of the Act, no creditor of any Certificateholder shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the
property of the Trust except in accordance with the terms of the Trust Agreement.
7. Under the Act, the Trust is a separate legal entity and, assuming that the Sale and Servicing Agreement conveys good title to the Trust property to the Trust as a true sale and not as a
security arrangement, the Trust rather than the holders of the Trust Certificates will hold whatever title to the Trust property as may be conveyed to it from time to time pursuant to the Sale and Servicing Agreement, except to the extent that
the Trust has taken action to dispose of or otherwise transfer or encumber any part of the Trust property.
8. Under § 3805(c) of the Act, except to the extent otherwise provided in the Trust Agreement, a holder of a Trust Certificate (including the Depositor in its capacity as such) has no interest
in specific Trust property.
9. The Trust Certificates have been duly authorized and executed by the Trust, and, when authenticated and delivered and paid for in accordance with the terms of the Trust Agreement, the Trust
Certificates will be validly issued and entitled to the benefits of the Trust Agreement.
10. Under Section 3808(a) and (b) of the Act, the Trust may not be terminated or revoked by any Certificateholder, and the dissolution, termination or bankruptcy of any Certificateholder shall
not result in the termination or dissolution of the Trust, except to the extent otherwise provided in the Trust Agreement.
The foregoing opinions are subject to the following exceptions, qualifications and assumptions:
A. The foregoing opinions are limited to the laws of the State of Delaware currently in effect. We express no opinion with respect to (i) federal laws, including without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Trust Indenture Act of 1939, as amended, and the Investment Company Act of 1940, as amended, (ii) state tax, insurance, securities or blue sky laws or (iii)
laws, rules and regulations relating to the particular nature of the Trust assets.
B. We have assumed (i) except to the extent provided in paragraph 1 above, the valid existence of each party to the documents examined by us under the laws of the jurisdiction governing its
organization, (ii) except to the extent provided in paragraph 1 above, that each party has the power and authority to execute and deliver, and to perform its obligations under, the documents examined by us, (iii) the legal capacity of natural
persons who are signatories to the documents examined by us, (iv) except to the extent provided in paragraphs 2 and 9 above, that each party has duly authorized, executed and delivered the documents
To The Persons Listed
On Schedule A Attached Hereto
September 18, 2019
Page 4
examined by us, (v) that each party has complied and will comply with all of the obligations and has satisfied and will satisfy all
of the conditions on its part to be performed or satisfied pursuant to the documents examined by us, (vi) that any amendment or restatement of any document reviewed by us has been accomplished in accordance with, and was permitted by, the
relevant provisions of said document prior to its amendment or restatement from time to time, (vii) that the Trust Agreement constitutes the entire agreement among the parties thereto with respect to the subject matter thereof, including, without
limitation, the creation, operation and termination of the Trust, and that the Trust Agreement and the Certificate of Trust are in full force and effect and have not been amended, (viii) except to the extent provided in paragraphs 4 and 5 above,
that the execution, delivery and performance of the documents examined by us by each of the parties thereto does not require the consent or approval of, the withholding of objection on the part of, the giving of notice to, the filing,
registration or qualification with, or the taking of any other action in respect of, any governmental authority or agency applicable to it or any of its property or violate any agreement, indenture or instrument to which it is a party or by which
it is bound or any provision of any law, rule, regulation, judgment, order, writ, injunction or decree of any court or governmental authority applicable to it or any of its property and (ix) that the Trust derives no income from or connected with
sources within the State of Delaware and has no assets, activities (other than having a Delaware trustee as required by the Act and the filing of documents with the Secretary of State) or employees in the State of Delaware.
C. The foregoing opinions regarding enforceability and the opinions in paragraphs 6, 7, 8 and 10 above are subject to (i) applicable bankruptcy, insolvency, liquidation, moratorium,
receivership, reorganization, fraudulent transfer and similar laws or proceedings relating to and affecting the rights and remedies of creditors generally, (ii) principles of equity, including applicable law relating to fiduciary duties
(regardless of whether considered and applied in a proceeding in equity or at law), (iii) applicable public policy with respect to the enforceability of provisions relating to indemnification, exculpation or contribution and (iv) judicial
imposition of an implied covenant of good faith and fair dealing.
D. We have assumed that all signatures on documents examined by us are genuine, that all documents submitted to us as originals are authentic, and that all documents submitted to us as copies
conform with the originals, which facts we have not independently verified.
E. We express no opinion as to the creation, attachment, perfection or priority of any mortgage or security interest or the nature or validity of title to any property. In addition, in
rendering the opinions set forth above, we have not considered and express no opinion with respect to the applicability or effect of the choice-of-law rules of the Hague Convention on the Law Applicable to Certain Rights in Respect of Securities
Held with an Intermediary as in effect in the United States of America for matters governed by Article 2(1) of that Convention.
F. We have not participated in the preparation of any offering materials with respect to the Notes or the Trust Certificates and assume no responsibility for their contents.
To The Persons Listed
On Schedule A Attached Hereto
September 18, 2019
Page 5
G. Notwithstanding any provision in the Trust Agreement or any Trust Documents to the contrary, we note that upon the occurrence of an event of dissolution of the Trust, the Trust cannot make
any payments or distributions to the Certificateholders until creditors’ claims are either paid in full or reasonable provision for payment thereof has been made.
H. With respect to the Trust Agreement, we express no opinion as to the validity or enforceability of provisions that purport to (i) restrict any right that a party may have to apply for a
judicial dissolution of the Trust, (ii) impose transfer restrictions on the Certificateholders to the extent that a transfer occurs by operation of law or (iii) bind a Person that is not a party to the Trust Agreement.
This opinion may be relied upon by you in connection with the matters set forth herein. Without our prior
written consent, this opinion may not be relied upon by or furnished to any other person or entity for any purpose; provided, however, copies of this opinion may be posted by the Trust, the Depositor or the Administrator to a password protected
website accessible by any non-hired “nationally recognized statistical rating organization” (a “Non-hired NRSRO”) that provides to the Trust, the Depositor or the Administrator the certification required by subsection (e) of Rule 17g-5 under the
Securities Exchange Act of 1934, as amended (or any successor provision to such subsection) (“Rule 17g-5”), and agrees to keep this opinion confidential as contemplated by Rule 17g-5; provided, further, that no such Non-hired NRSRO will be
entitled to rely on this opinion, and each such Non-hired NRSRO, by accessing a copy of this opinion, will be deemed to have agreed to comply with the terms of this sentence and not to provide copies of this opinion to any other person. We also
hereby consent to the filing of this opinion as an exhibit to the Depositor’s current report on Form 8-K. In giving the foregoing consents, we do not thereby admit that we come within the category of Persons whose consent is required under
Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
Very truly yours,
/s/ Richards, Layton & Finger, P.A.
DKD/CPM
SCHEDULE A
Wilmington Trust, National Association
BMW FS Securities LLC
BMW Vehicle Owner Trust 2019-A
BMW Financial Services NA, LLC
BMW Bank of North America
U.S. Bank National Association
Barclays Capital Inc.
TD Securities (USA) LLC
Wells Fargo Securities, LLC
HSBC Securities (USA) Inc.
RBC Capital Markets, LLC
BNP Paribas Securities Corp.
S&P Global Ratings
Fitch Ratings, Inc.