Common use of Adjustments for Miscellaneous Credits and Fraudulent Charges Clause in Contracts

Adjustments for Miscellaneous Credits and Fraudulent Charges. (a) The Servicer shall be obligated to reduce on a net basis for each Monthly Period the aggregate amount of Principal Receivables (a “Credit Adjustment”) with respect to any Principal Receivable (i) which was created in respect of merchandise refused or returned by the Obligor thereunder or as to which the Obligor thereunder has asserted a counterclaim or defense, (ii) which is reduced by the Servicer by any rebate, refund, charge-back or adjustment (including Servicer errors) or (iii) which was created as a result of a fraudulent or counterfeit charge. In the event that the inclusion of the amount of a Credit Adjustment in (x) the calculation of the Transferor Amount would cause the Transferor Amount to be an amount less than the Required Transferor Amount or (y) the calculation of the Pool Balance would cause the Pool Balance to be an amount less than the Minimum Pool Balance, the Transferor shall make a deposit, no later than (A) the First Note Transfer Date following the Monthly Period with respect to which such Credit Adjustment occurs or (B) in the event of a Servicer Rating Event, 10 Business Days after the inclusion of the Credit Adjustment that caused the Transferor Amount to be less than the Required Transferor Amount or the Pool Balance to be less than the Minimum Pool Balance, into the Excess Funding Account in immediately available funds in an amount equal to the greater of the amount by which (I) the Transferor Amount would be less than the Required Transferor Amount or (II) the Pool Balance would be an amount less than the Minimum Pool Balance, due to Credit Adjustments with respect to Receivables conveyed by the Transferor (each such deposit, an “Adjustment Payment”).

Adjustments for Miscellaneous Credits and Fraudulent Charges. (a) The Servicer shall be obligated to reduce on a net basis for each Monthly Period the aggregate amount of Principal Receivables (a “Credit Adjustment”) with respect to any Principal Receivable (i) which was created in respect of merchandise refused or returned by the Obligor thereunder or as to which the Obligor thereunder has asserted a counterclaim or defense, (ii) which is reduced by the Servicer by any rebate, refund, charge-back or adjustment (including Servicer errors) or (iii) which was created as a result of a fraudulent or counterfeit charge. In the event that the inclusion of the amount of a Credit Adjustment in (x) the calculation of the Transferor Amount would cause the Transferor Amount to be an amount less than the Required Transferor Amount or (y) the calculation of the Pool Balance would cause the Pool Balance to be an amount less than the Minimum Pool Balance, the Transferor shall make a deposit, no later than (Aa) the First Note Transfer Date following the Monthly Period with respect to which such Credit Adjustment occurs or (Bb) in the event of a Servicer Rating Event, 10 Business Days after the inclusion of the Credit Adjustment that caused the Transferor Amount to be less than the Required Transferor Amount or the Pool Balance to be less than the Minimum Pool Balance, into the Excess Funding Account in immediately available funds in an amount equal to the greater of the amount by which (Ii) the Transferor Amount would be less than the Required Transferor Amount or (IIii) the Pool Balance would be an amount less than the Minimum Pool Balance, due to Credit Adjustments with respect to Receivables conveyed by the Transferor (each such deposit, an “Adjustment Payment”).