Common use of Alternative Credit Support Election Clause in Contracts

Alternative Credit Support Election. In the event that an Alternative Credit Support Election is made pursuant to the provisions of the Series Supplement, Discover Bank on behalf of the Holder of the Seller Certificate may request that the Credit Enhancement Provider make an additional loan in the amount of the Additional Credit Support Amount. If Discover Bank on behalf of the Holder of the Seller Certificate makes such request, and if the Credit Enhancement Provider elects to make such loan, the amount of such loan shall be added to the unpaid principal amount of the Loan. In the event that the Alternative Credit Support Election does not become effective, the Additional Credit Support Amount (or, if the entire amount of the Additional Credit Support Amount is not then on deposit in the Credit Enhancement Account, the portion of the Additional Credit Support Amount that is then on deposit) shall be withdrawn from the Credit Enhancement Account and repaid to Discover Bank on behalf of the Holder of the Seller Certificate (or, if such amount was loaned by the Credit Enhancement Provider, returned to the Credit Enhancement Provider).