Common use of Allocations of Principal Collections and Reserve Available Funds Clause in Contracts

Allocations of Principal Collections and Reserve Available Funds. On the Business Day immediately preceding each Payment Date, the Trustee, upon written instructions from the Servicer, will transfer (i) all Principal Collections on deposit in the Collection Account, (ii) all amounts, if any, required to be transferred pursuant to Section 7.02(g) to the Distribution Account, (iii) any amounts transferred from the Reinvestment Account at the direction of the Servicer pursuant to Section 7.04(c), and (iv) on the Business Day immediately preceding the first Payment Date following the Reinvestment Period Termination Date, all amounts, if any, on deposit the Reinvestment Account, to the Distribution Account. Such amounts will remain uninvested while deposited in the Distribution Account. On each Payment Date (other than a Payment Date following an Event of Default or acceleration of the Notes or following the institution of Proceedings for foreclosure of the Indenture and liquidation of the Collateral), the Trustee, upon written instructions from the Servicer, will distribute the Principal Collections, any Reserve Available Funds on deposit in the Distribution Account and any amounts transferred from the Reinvestment Account to the following parties in the order of priority set forth below. With respect to the Notes then Outstanding, payments shall be made pro rata to the Holders of Notes based on their respective Percentage Interests. 1. to pay any unpaid amounts referred to in clauses 1 through 3 of Section 7.06(a) (in the priority stated therein) after the application of Interest Collections; (I) for so long as no Rapid Amortization Event has occurred, the Principal Distribution Amount (x) on or prior to the Reinvestment Period Termination Date, to the Reinvestment Account and (y) after the Reinvestment Period Termination Date, on a pro rata basis to the Noteholders, to pay outstanding principal on the Notes and (II) following the occurrence of any Rapid Amortization Event, or on the Legal Final Payment Date, on a pro rata basis to the Noteholders, until the Outstanding Note Balance is reduced to zero; 3. to pay any unpaid amounts referred to in clause 6 of Section 7.06(a), after the application of Interest Collections; 4. on or prior to the Reinvestment Period Termination Date, to the extent of amounts on deposit in (or to be deposited to) the Reinvestment Account, the amount determined by the Servicer, at its option, (i) upon prior notice thereof to the Trustee, the Rating Agency and the Noteholders, to be applied as a prepayment of principal on the Notes on a pro rata basis, in each case together with the Applicable Premium, and (ii) otherwise all remaining funds to be deposited in the Reinvestment Account; and 5. to pay all remaining Principal Collections to or at the direction of the Certificateholder. 6. To the extent that any fees of the Owner Trustee or the Trustee (in all capacities hereunder (including for avoidance of doubt as Backup Servicer or Successor Servicer)) are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in this Section 7.06(b).

Allocations of Principal Collections and Reserve Available Funds. On the Business Day immediately preceding each Payment Date, the Trustee, upon written instructions from the Servicer, will transfer all (i) all Principal Collections on deposit in the Collection Account, (ii) all amounts, if any, transferred from the Investment Account into the Distribution Account and (iii) solely with respect to items (1) through (3), all amounts, if any, required to be transferred pursuant to Section 7.02(g) to the Distribution Account, (iii) any amounts transferred 7.02 from the Reinvestment Reserve Account at the direction of the Servicer pursuant to Section 7.04(c), and (iv) on the Business Day immediately preceding the first Payment Date following the Reinvestment Period Termination Date, all amounts, if any, on deposit the Reinvestment Account, to into the Distribution Account. Such amounts will remain uninvested while deposited in the Distribution Account. On each Payment Date (other than a Payment Date following an Event of Default or and acceleration of the Notes or following the institution of Proceedings for foreclosure of the Indenture and liquidation of the CollateralNotes), the Trustee, upon written instructions from based solely on the ServicerMonthly Report, will distribute the Principal Collections, Collections and any amounts transferred from the Investment Account into the Distribution Account or Reserve Available Funds on deposit in the Distribution Account and any amounts transferred from the Reinvestment Account to the following parties in the order of priority set forth below. With respect to the Notes then Outstanding, payments shall be made pro rata to the Holders of Notes based on their respective Percentage Interests. 1. to pay any unpaid the payment of the amounts referred to in clauses 1 through 3 of Section 7.06(a) (in the priority stated therein) after ), but only to the application of Interest Collectionsextent not paid in full thereunder and subject to the limitations set forth therein; (I) for so long as no Rapid Amortization Event has occurred, the Principal Distribution Amount (xi) on or prior to the Reinvestment Investment Period Termination Date, (A) on a pro rata basis to the Reinvestment Noteholders, an amount equal to the Principal Distribution Amount, if any, taking into account any transfers into the Investment Account described in the following clause (B) and (B) at the discretion of the Servicer, to the Investment Account, an amount not to exceed the product of (x) Principal Collections on deposit in the Distribution Account on such Payment Date and (y) the Advance Rate and (ii) after the Reinvestment Investment Period Termination Date, on a pro rata basis basis, to the Noteholders, an amount equal to the Principal Distribution Amount, to pay outstanding principal on the Notes and (II) following the occurrence of any a Rapid Amortization Event, or on the Legal Final Payment Date, on a pro rata basis to the Noteholders, all remaining amounts in payment of principal on the Notes until the Outstanding Note Principal Balance of the Notes is reduced to zero; 3. to pay the Noteholders, all remaining amounts in payment of the Outstanding Principal Balance of the Notes on the Legal Final Payment Date; 4. if the amount on deposit in the Reserve Account is less than the Reserve Account Required Balance, to the Reserve Account, any unpaid remaining Principal Collections until amounts on deposit in the Reserve Account equal the Reserve Account Required Balance; 5. to the payment of the amounts referred to in clause 6 5 of Section 7.06(a), after the application of Interest Collections; 4. on or prior to the Reinvestment Period Termination Date, but only to the extent of amounts on deposit not paid in (or to be deposited to) the Reinvestment Account, the amount determined by the Servicer, at its option, (i) upon prior notice thereof full thereunder and subject to the Trustee, the Rating Agency and the Noteholders, to be applied as a prepayment of principal on the Notes on a pro rata basis, in each case together with the Applicable Premium, and (ii) otherwise all remaining funds to be deposited in the Reinvestment Accountlimitations set forth therein; and 56. any remaining amounts to pay all remaining Principal Collections to or at the direction of the Certificateholder. 6. To the extent that any fees of the Owner Trustee or the Trustee (in all capacities hereunder (including for avoidance of doubt as Backup Servicer or Successor Servicer)) are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in this Section 7.06(b7.05(b).

Allocations of Principal Collections and Reserve Available Funds. On the Business Day immediately preceding each Payment Date, the Trustee, upon written instructions from the Servicer, will transfer (i) all Principal Collections on deposit in the Collection Account, (ii) all amounts, if any, required to be transferred pursuant to Section 7.02(g) to the Distribution Account, (iii) any amounts transferred from the Reinvestment Account at the direction of the Servicer pursuant to Section 7.04(c), and (iv) on the Business Day immediately preceding the 71 BUSINESS.29147459.4 first Payment Date following the Reinvestment Period Termination Date, all amounts, if any, on deposit the Reinvestment Account, to the Distribution Account. Such amounts will remain uninvested while deposited in the Distribution Account. On each Payment Date (other than a Payment Date following an Event of Default or acceleration of the Notes or following the institution of Proceedings for foreclosure of the Indenture and liquidation of the Collateral), the Trustee, upon written instructions from the Servicer, will distribute the Principal Collections, any Reserve Available Funds on deposit in the Distribution Account and any amounts transferred from the Reinvestment Account to the following parties in the order of priority set forth below. With respect to the Notes then Outstanding, payments shall be made pro rata to the Holders of Notes based on their respective Percentage Interests. 1. to pay any unpaid amounts referred to in clauses 1 through 3 of Section 7.06(a) (in the priority stated therein) after the application of Interest Collections; 2. (I) for so long as no Rapid Amortization Event has occurred, the Principal Distribution Amount (x) on or prior to the Reinvestment Period Termination Date, to the Reinvestment Account and (y) after the Reinvestment Period Termination Date, on a pro rata basis to the Noteholders, to pay outstanding principal on the Notes and (II) following the occurrence of any Rapid Amortization Event, or on the Legal Final Payment Date, on a pro rata basis to the Noteholders, until the Outstanding Note Balance is reduced to zero; 3. to pay any unpaid amounts referred to in clause 6 of Section 7.06(a), after the application of Interest Collections; 4. on or prior to the Reinvestment Period Termination Date, to the extent of amounts on deposit in (or to be deposited to) the Reinvestment Account, the amount determined by the Servicer, at its option, (i) upon prior notice thereof to the Trustee, the Rating Agency and the Noteholders, to be applied as a prepayment of principal on the Notes on a pro rata basis, in each case together with the Applicable Premium, and (ii) otherwise all remaining funds to be deposited in the Reinvestment Account; and 5. to pay all remaining Principal Collections to or at the direction of the Certificateholder. 6. To the extent that any fees of the Owner Trustee or the Trustee (in all capacities hereunder (including for avoidance of doubt as Backup Servicer or Successor Servicer)) are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in this Section 7.06(b).