0001668186-18-000012.txt : 20180328 0001668186-18-000012.hdr.sgml : 20180328 20180328164813 ACCESSION NUMBER: 0001668186-18-000012 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20171231 0000893958 0000040729 FILED AS OF DATE: 20180328 DATE AS OF CHANGE: 20180328 ABS ASSET CLASS: Auto loans FILER: COMPANY DATA: COMPANY CONFORMED NAME: Capital Auto Receivables Asset Trust 2016-1 CENTRAL INDEX KEY: 0001668186 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-208079-01 FILM NUMBER: 18719442 BUSINESS ADDRESS: STREET 1: 1209 ORANGE STREET CITY: WILMINGTON STATE: DE ZIP: 19801 BUSINESS PHONE: 3135561240 MAIL ADDRESS: STREET 1: MAIL CODE 482-B08-C24 STREET 2: 200 RENAISSANCE CENTER CITY: DETROIT STATE: MI ZIP: 48265-2000 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAPITAL AUTO RECEIVABLES LLC CENTRAL INDEX KEY: 0000893958 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 383082892 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-49169 FILM NUMBER: 18719443 BUSINESS ADDRESS: STREET 1: 1209 ORANGE STREET CITY: WILMINGTON STATE: DE ZIP: 19801 BUSINESS PHONE: 3135561240 MAIL ADDRESS: STREET 1: MAIL CODE 482-B08-C24 STREET 2: 200 RENAISSANCE CENTER CITY: DETROIT STATE: MI ZIP: 48265-2000 FORMER COMPANY: FORMER CONFORMED NAME: CAPITAL AUTO RECEIVABLES INC DATE OF NAME CHANGE: 19921109 10-K 1 carat2016-112_31x1710xk.htm 10-K Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
þ
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES   EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2017
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES   EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________.


Capital Auto Receivables Asset Trust 2016-1
(Exact name of issuing entity as specified in its charter)

Commission file number of issuing entity: 333-208079-01

Central Index Key Number of issuing entity: 0001668186

Capital Auto Receivables LLC
(Exact name of depositor as specified in its charter)

Commission file number of depositor: 333-208079

Central Index Key Number of depositor: 0000893958

Ally Financial Inc.
(Exact name of sponsor as specified in its charter)

Central Index Key Number of sponsor (if applicable): 0000040729

DELAWARE
81-6282685
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
Capital Auto Receivables LLC
500 Woodward Avenue
Detroit, Michigan
48226
(Address of principal executive offices)
(Zip Code)
(866) 710-4623
(Registrant’s telephone number, including area code)

Securities registered or to be registered pursuant to Section 12(b) of the Act: None

Securities required to be registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of Acts. Yes ¨ No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes ¨ No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ Not applicable to this registrant.




Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of  "large accelerated filer,"  "accelerated filer," "non-accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
¨  Large accelerated filer
¨  Accelerated filer
þ  Non-accelerated filer
¨  Smaller Reporting Company
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ¨ Yes þ No

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. None

Registrant does not have any voting or non-voting common equity held by non-affiliates.

Documents incorporated by reference. None 

INDEX

Capital Auto Receivables Asset Trust 2016-1

Part I
 
 
 
Item 1.
 
Business*
 
Item 1A.
 
Risk Factors*
 
Item 1B.
 
Unresolved Staff Comments
 
Item 2.
 
Properties*
 
Item 3.
 
Legal Proceedings*
 
Item 4.
 
Mine Safety Disclosures
 
Part II
 
 
 
Item 5.
 
Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities*
 
Item 6.
 
Selected Financial Data*
 
Item 7.
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations*
 
Item 7A.
 
Quantitative and Qualitative Disclosures About Market Risk*
 
Item 8.
 
Financial Statements and Supplementary Data*
 
Item 9.
 
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure*
 
Item 9A.
 
Controls and Procedure*
 
Item 9B.
 
Other Information
 
Part III
 
 
 
Item 10.
 
Directors, Executive Officers and Corporate Governance*
 
Item 11.
 
Executive Compensation*
 
Item 12.
 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters*
 
Item 13.
 
Certain Relationships and Related Transactions and Director Independence*
 
Item 14.
 
Principal Accounting Fees and Services*
 
Part IV
 
 
 
Item 15.
 
Exhibits, Financial Statement Schedules
 



* Item is omitted in accordance with General Instructions J to Form 10-K.







2



 

Part I

Item 1B. Unresolved Staff Comments

None.

Item 4. Mine Safety Disclosures

Not applicable.

Substitute information provided in accordance with General Instruction J to Form 10-K:

Item 1112(b) of Regulation AB. Significant Obligors of Pool Assets (Financial Information).

There are no significant obligors with respect to the pool assets held by Capital Auto Receivables Asset Trust 2016-1 (the “Issuing Entity”).

Item 1114(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for Certain Derivatives Instruments (Financial Information).

No entity or group of affiliated entities provides any external credit enhancement or other support with respect to either payment of the pool assets held by the Issuing Entity or payments on the notes (the “Notes”) or certificates (the “Certificates”) issued by the Issuing Entity.

Item 1115(b) of Regulation AB. Certain Derivatives Instruments (Financial Information).

No entity or group of affiliated entities provides any derivative instruments that are used to alter the payment characteristics of the cashflows from the Issuing Entity.

Item 1117 of Regulation AB. Legal Proceedings.

There are no current legal proceedings pending, or to the best knowledge of management of such entity, threatened, against the Issuing Entity, the sponsor, the servicer or the depositor that, if determined adversely to such party, would be expected to have a material adverse effect on the performance of the notes.

The owner trustee has represented to the Issuing Entity that it is not a party to any current legal proceedings, nor is its management aware of any legal proceedings threatened against it that, if determined adversely to such party, would be expected to have a material adverse effect on the performance of the notes.



Part II

Item 9B. Other Information

None.

Part III

Substitute information provided in accordance with General Instruction J to Form 10-K:

Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions.

Information required by Item 1119 of Regulation AB has been omitted from this report on Form 10-K in reliance on the Instruction to Item 1119.  The information has been provided previously in a Prospectus, dated March 9, 2016, filed by the Issuing Entity, pursuant to Rule 424(b)(5) of the Securities Act of 1933 on March 11, 2016.






3



 

Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.

Each of Ally Financial Inc. (“Ally Financial”) and Deutsche Bank Trust Company Americas (each, a “Servicing Participant”) has been identified by the registrant as a party participating in the servicing function with respect to the pool assets held by the Issuing Entity during the reporting period. Each of the Servicing Participants has completed a report on an assessment of compliance with the servicing criteria applicable to such Servicing Participant (each, a “Report on Assessment”) during the Issuing Entity’s year ended December 31, 2017, which Reports on Assessment are attached as exhibits to this Form 10-K. In addition, each of the Servicing Participants has provided an attestation report (each, an “Attestation Report”) by a registered independent public accounting firm regarding its related Report on Assessment. Each Attestation Report is attached as an exhibit to this Form 10-K.

None of the Reports on Assessment or the related Attestation Reports has identified any material instances of noncompliance with the servicing criteria described in the related Report on Assessment as being applicable to each such Servicing Participant.

Item 1123 of Regulation AB. Servicer Compliance Statement.

Ally Financial has been identified as the servicer during the reporting period with respect to the pool assets held by the Issuing Entity. Ally Financial has provided a statement of compliance with the applicable servicing activities (the “Compliance Statement”), signed by an authorized officer, and such Compliance Statement is attached as an exhibit to this Form 10-K.










































4



 

Part IV

Item 15. Exhibits, Financial Statement Schedules

 
(a)
List the following documents filed as a part of the report:

 
(1)
Financial Statements — Not Applicable.
 
(2)
Financial Statement Schedules — Not Applicable.
 
(3)
Exhibits









5



 

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.

 
Capital Auto Receivables LLC, as Depositor
 
 
 
/s/ Ryan C. Farris
 
 
Ryan C. Farris
 
President
 
(Senior Officer in charge of securitization of the depositor)
 
 

Date: March 28, 2018












































6



 

Index of Exhibits

Exhibit
 
Description
 
Method of Filing
 
 
 
 
 
3.1
 
Limited Liability Company Agreement of Capital Auto Receivables LLC entered into on October 20, 2006, as amended by Amendment No.1 to Limited Liability Company Agreement, dated as of November 20, 2006.
 
**
4.1
 
Indenture between Capital Auto Receivables Asset Trust 2016-1 (the “Issuing Entity”) and Deutsche Bank Trust Company Americas, as Indenture Trustee (the “Indenture Trustee”), dated as of March 16, 2016.
 
*
4.2
 
Trust Agreement between Capital Auto Receivables LLC, as Depositor, and BNY Mellon Trust of Delaware, as Owner Trustee, dated as of March 16, 2016.
 
*
4.3
 
Pooling and Servicing Agreement between Ally Financial Inc. ("Ally Financial"), as Seller and Servicer, and Capital Auto Receivables LLC, dated as of March 16, 2016.
 
*
31.1
 
Certification of Executive Officer Pursuant to Rule 13a-14(d)/15d-14(d).
 
Filed herewith.
33.1
 
Report on Assessment of Compliance with SEC Regulation AB Servicing Criteria concerning activities of Ally Financial for the year ended December 31, 2017.
 
Filed herewith.
33.2
 
Report on Assessment of Compliance with SEC Regulation AB Servicing Criteria concerning activities of Deutsche Bank Trust Company Americas for the year ended December 31, 2017.
 
Filed herewith.
34.1
 
Registered Public Accounting Firm Attestation Report on Assessment of Compliance with applicable Servicing Criteria of Ally Financial dated March 9, 2018 for the year ended December 31, 2017.
 
Filed herewith.
34.2
 
Registered Public Accounting Firm Attestation Report on Assessment of Compliance with applicable Servicing Criteria of Deutsche Bank Trust Company Americas, dated February 28, 2018 for the year ended December 31, 2017.
 
Filed herewith.
35.1
 
Servicer Compliance Statement of Ally Financial for the year ended December 31, 2017.
 
Filed herewith.
99.1
 
Trust Sale and Servicing Agreement among Capital Auto Receivables LLC, as Depositor and Ally Financial, as Servicer, Custodian and Seller, and the Issuing Entity, dated as of March 16, 2016.
 
*
99.2
 
Custodian Agreement between Ally Financial, as Custodian, and Capital Auto Receivables LLC, as Depositor, dated as of March 16, 2016.
 
*
99.3
 
Administration Agreement among the Issuing Entity, Ally Financial, as Administrator, and the Indenture Trustee, dated as of March 16, 2016.
 
*
99.4
 
Asset Representations Review Agreement among the Issuing Entity, Ally Financial, as Sponsor, and Clayton Fixed Income Services LLC, as Asset Representations Reviewer, dated as of March 16, 2016.
 
*



*
Incorporated by reference to the corresponding Exhibit to the Issuing Entity’s Current Report on Form 8-K filed on March 17, 2016 (File No. 333-208079-01).

**
Incorporated by reference to Exhibit 3.1 of Capital Auto Receivables LLC’s Post-Effective Amendment No. 3 to Form S-3 Registration Statement filed on December 4, 2006 (File No. 333-105077).














7 

EX-31.1 2 carat2016-1exhibit3112017.htm EXHIBIT 31.1 Exhibit



Exhibit 31.1

Certifications



I, Ryan C. Farris, certify that:

1
I have reviewed this report on Form 10-K and all reports on Form 10-D required to be filed in respect of the period covered by this report on Form 10-K of Capital Auto Receivables Asset Trust 2016-1 (the “Exchange Act periodic reports”);

2
Based on my knowledge, the Exchange Act periodic reports, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3
Based on my knowledge, all of the distribution, servicing and other information required to be provided under Form 10-D for the period covered by this report is included in the Exchange Act periodic reports;

4
Based on my knowledge and the servicer compliance statement required in this report under Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic reports, the servicer has fulfilled its obligations under the servicing agreement in all material respects; and

5
All of the reports on assessment of compliance with servicing criteria for asset-backed securities and their related attestation reports on assessment of compliance with servicing criteria for asset-backed securities required to be included in this report in accordance with Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to this report, except as otherwise disclosed in this report. Any material instances of noncompliance described in such reports have been disclosed in this report on Form 10-K.

In giving the certifications above, I have reasonably relied on the information provided to me by the following unaffiliated party: Deutsche Bank Trust Company Americas and BNY Mellon Trust of Delaware.

Date: March 28, 2018

/s/ Ryan C. Farris
 
 
Ryan C. Farris
President, Capital Auto Receivables LLC, as Depositor
(Senior Officer in charge of securitization of the depositor)
 
 

EX-33.1 3 carat2016-1exhibit3312017.htm EXHIBIT 33.1 Exhibit
 


Exhibit 33.1
 
Certification Regarding Compliance with SEC Regulation AB Servicing Criteria

1
Ally Financial Inc., including its wholly owned subsidiary Ally Bank (collectively, "Ally") is responsible for assessing compliance with the servicing criteria applicable to it under paragraph (d) of Item 1122 of Regulation AB, as of and for the year ended December 31, 2017 (the "Reporting Period"), as set forth in Appendix A hereto. The transactions covered by this report include retail and lease transactions (including asset-backed securities transactions) for which Ally acts as servicer, involving the Consumer Automotive Receivables Platform (the "Platform"). The Platform consists of the activities involved in the performance of servicing functions for all publicly and privately issued retail and lease transactions (including asset-backed transactions).



2
Ally has engaged certain vendors (the "Vendors") to perform specific, limited or scripted activities, and Ally elects to take responsibility for assessing compliance with the servicing criteria or portion of the servicing criteria applicable to such Vendors' activities as set forth in Appendix A hereto;


3
Except as set forth in paragraph 4 below, Ally used the criteria set forth in paragraph (d) of Item 1122 of Regulation AB to assess the compliance with the applicable servicing criteria;


4
The criteria listed in the column titled "Inapplicable Servicing Criteria" on Appendix A hereto are inapplicable to Ally based on the activities it performs, directly or through its Vendors, with respect to the Platform;


5
Ally has complied, in all material respects, with the applicable servicing criteria as of December 31, 2017 and for the Reporting Period with respect to the Platform taken as a whole;

6
Ally has not identified and is not aware of any material instance of noncompliance by the Vendors with the applicable servicing criteria as of December 31, 2017 and for the Reporting Period with respect to the Platform taken as a whole;

7
Ally has not identified any material deficiency in its policies and procedures to monitor the compliance by the Vendors with the applicable servicing criteria as of December 31, 2017 and for the Reporting Period with respect to the Platform taken as a whole; and

8
Deloitte & Touche LLP, an independent registered public accounting firm, has issued an attestation report on Ally's assessment of compliance with the applicable servicing criteria for the Reporting Period.


March 9, 2018

 
Ally Financial Inc.
 
 
 
By:
/s/ David J. DeBrunner
 
 
 
Name: David J. DeBrunner
 
 
Title: Vice President, Controller and Chief
 
 
Accounting Officer
 
 
 
 
By:
/s/ Matthew Y. L. Loucks
 
 
 
Name: Matthew Y. L. Loucks
 
 
Title: Assistant Treasurer, Senior Director
 
 
 
 
 
Ally Bank
 
 
 
 
 
By:
/s/ David J. DeBrunner
 
 
 
Name: David J. DeBrunner
 
 
Title: Controller and Chief Accounting Officer



APPENDIX A

 
 
Servicing Criteria
Applicable Servicing Criteria
INAPPLICABLE Servicing Criteria
 
 
 
Reference
Criteria
Performed Directly by Ally
Performed by Vendor(s) for which Ally is the Responsible Party
 
General Servicing Considerations
 
 
1122(d)(1)(i)
Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.
XX
 
 
 
1122(d)(1)(ii)
If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.
XX
 
 
 
1122(d)(1)(iii)
Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.
 
 
XX
 
1122(d)(1)(iv)
A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.
 
 
XX
 
1122(d)(1)(v)
Aggregation of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.
XX
 
 
 
Cash Collection and Administration
 
 
1122(d)(2)(i)
Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.
XX
 
 
 
1122(d)(2)(ii)
Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.
XX
 
 
 
1122(d)(2)(iii)
Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.
XX
 
 
 
1122(d)(2)(iv)
The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.
XX
 
 
 
1122(d)(2)(v)
Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 240.13k-1(b)(1) of the Securities Exchange Act.
XX
 
 
 
1122(d)(2)(vi)
Unissued checks are safeguarded so as to prevent unauthorized access.
 
 
XX
 
1122(d)(2)(vii)
Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.
XX
 
 
 
Investor Remittances and Reporting
 
 
1122(d)(3)(i)
Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.
XX
 
 
 
1122(d)(3)(ii)
Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.
XX
 
 
 
1122(d)(3)(iii)
Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.
XX
 
 



1122(d)(3)(iv)
Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.
XX
 
 
Pool Asset Administration
 
1122(d)(4)(i)
Collateral or security on pool assets is maintained as required by the transaction agreements or related pool assets documents.
XX
XX
 
1122(d)(4)(ii)
Pool assets and related documents are safeguarded as required by the transaction agreements
XX 
XX
 
1122(d)(4)(iii)
Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.
XX
 
 
1122(d)(4)(iv)
Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related [pool asset] documents.
XX
XX
 
1122(d)(4)(v)
The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.
XX
 
 
1122(d)(4)(vi)
Changes with respect to the terms or status of an obligor's pool assets (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.
XX
XX
 
1122(d)(4)(vii)
Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.
XX
XX
 
1122(d)(4)(viii)
Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).
XX
XX
 
1122(d)(4)(ix)
Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.
 
 
XX
1122(d)(4)(x)
Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.
 
 
XX
1122(d)(4)(xi)
Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the Servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.
 
 
XX
1122(d)(4)(xii)
Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the Servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.
 
 
XX
1122(d)(4)(xiii)
Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the Servicer, or such other number of days specified in the transaction agreements.
 
 
XX
1122(d)(4)(xiv)
Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.
XX
 
 
1122(d)(4)(xv)
Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.
XX
 
 


 
 
 


EX-33.2 4 carat2016-1exhibit3322017.htm EXHIBIT 33.2 Exhibit



Exhibit 33.2

MANAGEMENT’S ASSERTION OF COMPLIANCE


Management of the Trust & Securities Services department of Deutsche Bank National Trust Company and Deutsche Bank Trust Company Americas (collectively the “Company”) is responsible for assessing the servicing criteria set forth in Item 1122(d) of Regulation AB promulgated by the Securities and Exchange Commission to determine which criteria are applicable to the Company in respect of the servicing platform described below. Management has determined that the servicing criteria are applicable in regard to the servicing platform as of and for the period as follows:
 
Platform: Publicly-issued (i.e., transaction-level reporting required under the Securities Exchange Act of 1934, as amended) and certain privately-issued (i.e., for which transaction-level reporting is required pursuant to contractual obligation) residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities issued on or after January 1, 2006, for which the Company provides trustee, certificate administrator, securities administration, paying agent or custodian services, as defined in the transaction agreements, excluding publicly-issued securities sponsored or issued by any government sponsored entity (the “Platform”).

Applicable Servicing Criteria: All servicing criteria set forth in Item 1122(d), to the extent required by Item 1122(d) servicing criteria in regards to the activities performed by the Company with respect to the Platform as to any transaction, except for the following criteria: 1122(d)(4)(iv) - 1122(d)(4)(xiv), which management has determined are not applicable to the activities the Company performs with respect to the Platform (the “Applicable Servicing Criteria”). With respect to Applicable Servicing Criteria 1122(d)(1)(ii), 1122(d)(1)(iii), 1122(d)(2)(iii) and 1122(d)(4)(iii) there were no activities performed during the year ended December 31, 2017 with respect to the Platform, because there were no occurrences of events that would require the Company to perform such activities.

Period: Year ended December 31, 2017 (the “Period”).

Management's interpretation of Applicable Servicing Criteria: The Company’s management has determined that servicing criterion 1122(d)(1)(iii) is applicable only with respect to its continuing obligation to act as, or locate a, successor servicer under the circumstances referred to in certain transaction agreements. It is management's interpretation that the Company has no other active back-up servicing responsibilities in regards to servicing criterion 1122(d)(1)(iii) as of and for the Period. The Company’s management has determined that servicing criterion 1122(d)(1)(v) is applicable only to the activities the Company performs related to the mathematically accurate aggregation of information received from servicers and the accurate conveyance of such information within reports to investors. The Company’s management has determined that servicing criterion 1122(d)(4)(iii) is applicable to the activities the Company performs with respect to the Platform only as it relates to the Company’s obligation to report additions, removals or substitutions on reports to investors in accordance with the transaction agreements.

With respect to the Platform as of and for the Period, the Company’s management provides the following assertion of compliance with respect to the Applicable Servicing Criteria:

The Company’s management is responsible for assessing the Company’s compliance with the Applicable Servicing Criteria.

The Company’s management has assessed compliance with the Applicable Servicing Criteria. In making this assessment, management used the criteria set forth by the Securities and Exchange Commission in paragraph (d) of Item 1122 of Regulation AB.

Based on such assessment, the Company has complied, in all material respects with the Applicable Servicing Criteria.

KPMG LLP, an independent registered public accounting firm, has issued an attestation report with respect to management’s assertion of compliance with the Applicable Servicing Criteria as of and for the Period.




















DEUTSCHE BANK NATIONAL TRUST COMPANY


By:     /s/ David Co
Name: David Co
Its: Director

By:    /s/ Matt Bowen
Name: Matt Bowen
Its: Managing Director

By:     /s/ Kevin Fischer
Name: Kevin Fischer
Its: Director


DEUTSCHE BANK TRUST COMPANY AMERICAS

By:    /s/ David Co
Name: David Co
Its: Director

By:     /s/ Jenna Kaufman
Name: Jenna Kaufman
Its: Director



Dated: February 28, 2018



 
 

EX-34.1 5 carat2016-1exhibit3412017.htm EXHIBIT 34.1 Exhibit


Exhibit 34.1


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
Board of Directors
Ally Financial Inc.

We have examined management’s assertion, included in the accompanying Certification Regarding
Compliance with SEC Regulation AB Servicing Criteria, that Ally Financial Inc., including its wholly
owned subsidiary Ally Bank (collectively, the “Company”) complied with the servicing criteria set forth
in Item 1122(d) of the Securities and Exchange Commission’s Regulation AB for the Consumer
Automotive Receivables Platform (the “Consumer Platform”) as of and for the year ended December
31, 2017, excluding criteria 1122(d)(1)(iii), 1122(d)(1)(iv), 1122(d)(2)(vi), 1122(d)(4)(ix),
1122(d)(4)(x), 1122(d)(4)(xi), 1122(d)(4)(xii) and 1122(d)(4)(xiii), which management has
determined are not applicable to the activities performed by the Company with respect to the
Consumer Platform. The Consumer Platform consists of the activities involved in the performance of
servicing functions for all publicly and privately issued retail and lease transactions (including asset-backed
transactions). Management is responsible for the Company’s compliance with the servicing
criteria. Our responsibility is to express an opinion on management’s assertion about the Company’s
compliance with the servicing criteria based on our examination.

Our examination was conducted in accordance with the standards of the Public Company Accounting
Oversight Board (United States), and, accordingly, included examining, on a test basis, evidence
about the Company’s compliance with the applicable servicing criteria, including tests on a sample
basis of the servicing activities related to the Consumer Platform, determining whether the Company
performed those selected activities in compliance with the servicing criteria during the specified
period, and performing such other procedures as we considered necessary in the circumstances. Our
procedures were limited to selected servicing activities performed by the Company during the period
covered by this report and, accordingly, such samples may not have included servicing activities
related to each asset-backed transaction included in the Consumer Platform. Further, an examination
is not designed to detect noncompliance arising from errors that may have occurred prior to the period
specified above that may have affected the balances or amounts calculated or reported by the
Company during the period covered by this report. We believe that our examination provides a
reasonable basis for our opinion. Our examination does not provide a legal determination on the
Company’s compliance with the servicing criteria.

As described in management’s assertion, for servicing criteria 1122(d)(4)(i), 1122(d)(4)(ii),
1122(d)(4)(iv), 1122(d)(4)(vi), 1122(d)(4)(vii) and 1122(d)(4)(viii), the Company has engaged
vendors to perform certain activities required by these servicing criteria. The Company has
determined that the vendors are not considered a “servicer” as defined in Item 1101(j) of Regulation
AB, and the Company has elected to take responsibility for assessing compliance with the servicing
criteria applicable to the vendors as permitted by the SEC’s Compliance and Disclosure Interpretation
200.06, Vendors Engaged by Servicers (“C&DI 200.06”). As permitted by C&DI 200.06, the Company
has asserted that it has policies and procedures in place designed to provide reasonable assurance
that the vendors’ activities comply in all material respects with the servicing criteria applicable to the
vendors. The Company is solely responsible for determining that it meets the SEC requirements to
apply C&DI 200.06 for the vendors and related criteria as described in its assertion, and we performed
no procedures with respect to the Company's determination of its eligibility to apply C&DI 200.06.

In our opinion, management’s assertion that the Company complied with the aforementioned
applicable servicing criteria as of and for the year ended December 31, 2017, for the Consumer
Automotive Receivables Platform is fairly stated, in all material respects.

/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
 

March 9, 2018


EX-34.2 6 carat2016-1exhibit3422017.htm EXHIBIT 34.2 Exhibit



Exhibit 34.2
Report of Independent Registered Public Accounting Firm


The Board of Directors
The Trust & Agency Services department of Deutsche Bank National Trust Company and
Deutsche Bank Trust Company Americas:
We have examined management’s assertion, included in the accompanying Management’s Assertion of Compliance, that the Trust & Agency Services department of Deutsche Bank National Trust Company and Deutsche Bank Trust Company Americas (collectively the “Company”) complied with the servicing criteria set forth in Item 1122(d) of the Securities and Exchange Commission’s Regulation AB for publicly issued (i.e., transaction‑level reporting required under the Securities Exchange Act of 1934, as amended) and certain privately issued (i.e., for which transaction‑level reporting is required pursuant to contractual obligation) residential mortgage‑backed securities, commercial mortgage‑backed securities and other asset‑backed securities issued on or after January 1, 2006, for which the Company provides trustee, certificate administrator, securities administration, paying agent or custodian services, as defined in the transaction agreements, excluding publicly issued securities sponsored or issued by any government sponsored entity (the “Platform”), except for servicing criteria 1122(d)(4)(iv) - 1122(d)(4)(xiv), which the Company has determined are not applicable to the activities it performs with respect to the Platform, as of and for the year ended December 31, 2017. With respect to servicing criteria 1122(d)(1)(ii), 1122(d)(1)(iii), 1122(d)(2)(iii) and 1122(d)(4)(iii), Management’s Assertion of Compliance indicates that there were no activities performed during the year ended December 31, 2017 with respect to the Platform, because there were no occurrences of events that would require the Company to perform such activities. The Company has determined the following servicing criteria to be applicable only to the activities the Company performs with respect to the Platform as described below:
Servicing criterion 1122(d)(1)(iii) is applicable only with respect to the Company’s continuing obligation to act as, or locate a, successor servicer under the circumstances referred to in certain transaction agreements. It is management’s interpretation that the Company has no other active back‑up servicing responsibilities in regards to servicing criterion 1122(d)(1)(iii) as of and for the year ended December 31, 2017.
Servicing criterion 1122(d)(1)(v) is applicable only to the activities the Company performs related to the mathematically accurate aggregation of information received from servicers and the accurate conveyance of such information within reports to investors.
Servicing criterion 1122(d)(4)(iii) is applicable to the activities the Company performs with respect to the Platform only as it relates to the Company’s obligation to report additions, removals or substitutions on reports to investors in accordance with the transaction agreements.

Management is responsible for the Company’s compliance with the servicing criteria. Our responsibility is to express an opinion on management’s assertion about the Company’s compliance based on our examination.
Our examination was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Company’s compliance with the servicing criteria specified above and performing such other procedures as we considered necessary in the circumstances. Our examination included testing selected asset‑backed transactions and securities that comprise the Platform, testing selected servicing activities related to the Platform, and determining whether the Company processed those selected transactions and performed those selected activities in compliance with the servicing criteria. Furthermore, our procedures were limited to the selected transactions and servicing activities performed by the Company during the period covered by this report. Our procedures were not designed to determine whether errors may have occurred either prior to or subsequent to our tests that may have affected the balances or amounts calculated or reported by the Company during the period covered by this report for the selected transactions or any other transactions. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Company’s compliance with the servicing criteria.
In our opinion, management’s assertion that the Company complied with the aforementioned servicing criteria, as of and for the year ended December 31, 2017, is fairly stated, in all material respects.
/s/KPMG LLP
Chicago, Illinois
February 28, 2018

EX-35.1 7 carat2016-1exhibit3512017.htm EXHIBIT 35.1 Exhibit



Exhibit 35.1
  ALLY FINANCIAL INC.
500 Woodward Ave
Detroit, Michigan 48226




As of December 31, 2017
Deutsche Bank Trust Company Americas
BNY Mellon Trust of Delaware
As Indenture Trustee
As Owner Trustee
100 Plaza One - MS: JCY03-0699
301 Bellevue Parkway, 3rd Floor
Jersey City, New Jersey 07311-3901
Wilmington, DE 19809
Attn: Capital Auto Receivables Asset Trust 2016-1
 

Copy To:

The Bank of New York Mellon Trust Company, N.A.
Capital Auto Receivables LLC
2 North LaSalle Street, Suite 1020
500 Woodward Ave.
Chicago, IL  60602
Mail code: MI-01-20-TRES
Attention: Structured Finance Services CARAT 2016-1
Detroit, MI 48226
 
Attention: Ryan Farris

Re:
Capital Auto Receivables Asset Trust 2016-1
 
Annual Statement as to Compliance

Ladies and Gentlemen:

Reference is made to Section 4.01 of the Trust Sale and Servicing Agreement dated as of March 16, 2016 between the Issuer, Ally Financial Inc., as Servicer, Custodian, and Seller (“Servicer”), and Capital Auto Receivables LLC, as Depositor.


The undersigned does hereby certify that:

a.
A review of the activities of the Servicer during the period of January 1, 2017 through December 31, 2017, and of its performance under the Trust Sale and Servicing Agreement and the Pooling and Servicing Agreement has been made under his supervision; and


b.
To the best of his knowledge, based on such review, the Servicer has fulfilled in all material respects all its obligations under the Trust Sale and Servicing Agreement and the Pooling and Servicing Agreement throughout such period.


 
Very truly yours,
 
 
 
/s/ David J. DeBrunner
 
 
David J. DeBrunner
 
Vice President, Controller and Chief Accounting Officer