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refund obligation is determined by a formula based on the full
contract price, time elapsed, and mileage driven. The refund is
unaffected by the amount of claims for repairs under the contract
that have been financed from the PLRF. Yet if the VSC created a
specific trust property to finance each contract holder's
repairs, the consumption of that property through repairs would
reduce the refundable balance pro tanto, in the same manner that
the rendition of attorneys' services reduced the refundable
balance of the client trust account in Miele. The actual
operation of the VSC arrangement demonstrates that the funds
collected by the Dealership on the sale of a VSC were not
impressed with a trust in favor of the contract holder.
(2) The Purchaser Had No Beneficial Interest in the PLRF;
the PLRF Existed for the Benefit of the Individual
Dealerships and for the Protection of Travelers
The operative agreements do not grant the purchaser any
rights that the status of beneficiary would imply. None of the
agreements expressly recognizes any right of the purchaser to
enforce the terms for the establishment, funding, administration,
or termination of the trust. On the contrary, the VSC expressly
disclaims any liability of the Administrator to the purchaser.
The obligations of the Escrow Trustees ordinarily do not run to
the purchaser directly. Reserves are released to the issuing
Dealership or to another authorized repair facility. Even
cancellation refunds are remitted to the issuing Dealership for
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