Common use of Additional Covenants of Transferor Clause in Contracts

Additional Covenants of Transferor. People's Bank, in its ---------------------------------- capacity as Transferor, hereby covenants that following the occurrence of a Series Pay Out Event described in Section 9A(c) hereof, except as otherwise required by any Requirements of Law, it will not reduce the Periodic Finance Charges assessed on any Receivable, or other fees on any Account, if the Transferor reasonably believes that, as a result of such reduction, (i) the weighted average of the Periodic Finance Charges on the last day of the Monthly Period during which such reduction will be effective (weighted based on the Transferor's reasonable belief as to the Principal Receivables which will be outstanding on such last day) will be less than (ii) the sum of (1) 2.00% and (2) the weighted average of the Certificates Rates of each Series that will be outstanding on such last day (weighted based on the Transferor's reasonable belief as to (x) the amount of the Investor Interest of each Series that will be outstanding on such last day, (y) in the case of Series for which the Certificate Rate is a floating rate, the Certificate Rate with respect to such Monthly Period).

Additional Covenants of Transferor. People's Bank, in its ---------------------------------- capacity as Transferor, hereby covenants that following the occurrence of a Series Pay Out Event described in Section 9A(c) hereof, except as otherwise required by any Requirements of Law, it will not reduce the Periodic Finance Charges assessed on any Receivable, or other fees on any Account, if the Transferor reasonably believes that, as a result of such reduction, (i) the weighted average of the Periodic Finance Charges on the last day of the Monthly Period during which such reduction will be effective (weighted based on the Transferor's reasonable belief as to the Principal Receivables which will be outstanding on such last day) will be less than (ii) the sum of (1) 2.00% and (2) the weighted average of the Certificates Rates of each Series that will be outstanding on such last day (weighted based on the Transferor's reasonable belief as to (x) the amount of the Investor Interest of each Series that will be outstanding on such last day, (y) in the case of Series for which the Certificate Rate is a floating rate, the Certificate Rate with respect to such Monthly Period).