Auction Purchases. Each Lender acknowledges that the Borrower is an Eligible Assignee hereunder and may purchase or acquire Term Loans hereunder from Lenders from time to time pursuant to a Dutch Auction in accordance with the terms of this Agreement (including, without limitation, Section 11.04 hereof), subject to the restrictions set forth in the definitions of “Eligible Assignee” and “Dutch Auction” and the following limitations:
Auction Purchases. There are many ways a dealer can acquire inventory. The three that occur most often are:
Auction Purchases. Policy Statement This is a purchase in which the vehicle is purchased through the auction lane of an AFC-approved auction. The dealer must present the auction ticket as the loan's source documentation. Branch employees must verify the integrity of the transaction by inspecting the related documentation. The table below explains the parameters for advances made for an AFC Approved Auction Purchases. APPROVED AUCTION PURCHASE MAXIMUM AFC ADVANCE MAXIMUM AFC ADVANCE PAYING [ * ] PAYING AUCTION DEALER ADDITIONAL AFC FEE ------------------------------------------------------------------------------------------------------------ Up to [ * ] Up to [ * ] Up to [ * ] None [ * ] day Up to [ * ] Up to [ * ] [ * ] - Required documentation: Negotiable title and auction ticket. If inspection is required, attach the Advance Checklist Form. FLOORPLANNING DATES WHEN PAYING AUCTION FLOORPLANNING DATES WHEN PAYING DEALER [ * ] [ * ] must be entered manually into COSMOS unless this was from an AFC-sponsored float program. Vehicles over [ * ] The total floorplan fee for this privilege is [ * ]. These transactions require [ * ] approval.
Auction Purchases. There are many ways a dealer can acquire inventory. The three that occur most often are: 1. 2. 3. Dealer takes vehicle on trade from a retail customer. Dealer trades inventory with another dealer (new or used). Dealer directly purchases from another dealer (new or used), fleet organization or other automotive entity. AFC - CREDIT POLICY MAXIMUM AFC ADVANCE MAXIMUM AFC ADVANCE ADDITIONAL HELD AGAINST IF INSPECTED PRIOR IF NOT INSPECTED ADMINISTRATIVE FEE DEALER’S NON-AUCTION [ * ] TO FLOORING. PRIOR TO FLOORING. CHARGED TO DEALER. PERCENTAGE? Up to [ * ] Up to [ * ] Up to [ * ] (whichever is less) (whichever is less) [ * ] Yes [ * ] Up to [ * ] Up [ * ] (whichever is less) (whichever is less) [ * ] Yes [ * ] and greater Up to [ * ] Not Allowed (whichever is less) [ * ] Yes · Required documentation: Negotiable title, Blackbook valuation, Advance Checklist Form and an original and/or copy of BOS or auction ticket. ANY EXCEPTION TO THE ABOVE OUTLINE CAN BE MADE BY WRITTEN REQUEST FROM THE BRANCH MANAGER TO THE REGIONAL MANAGER. Non-Auction Purchase Privileges · [ * ]%= ANY ACCOUNT IF RECOMMENDED BY THE BRANCH MANAGER · [ * ]%= [ * ] NO NSF’S OR FAILED LOT AUDITS WITHIN 90 DAYS. · [ * ]%=[ * ] NO NSF’S OR FAILED LOT AUDITS WITHIN 90 DAYS. · [ * ]%= [ * ] NO NSF’S OR FAILED LOT AUDITS WITHIN 90 DAYS. Any exception to the above outline can be made by written request from the Branch Manager to the Regional Manager prior to submission to the Administrative Department for approval by the Director of Financial Services. Reminders for Approved Auction and Non-Auction Purchases AFC - CREDIT POLICY · BRANCHES DO NOT HAVE TO ADVANCE THE FULL PERCENTAGE IN THE MAXIMUM AFC ADVANCE COLUMN AND IT IS RECOMMENDED TO INSPECT. · BRANCHES MUST AGGRESSIVELY FOLLOW-UP FOR ALL OUTSTANDING TITLES FROM “INDIRECT” ADVANCES. OUTSTANDING TITLES SHOULD NEVER AGE OVER 48 HOURS FROM THE DATE ON WHICH AFC FUNDS WERE MAILED. · BRANCHES MUST CONDUCT COMPLETE INSPECTIONS OF THE COLLATERAL IN ACCORDANCE WITH THE ADVANCE CHECKLIST FORM. · BRANCHES MUST HAVE ORIGINAL TITLE PRIOR TO ALL DIRECT FUNDING. Vehicles [ * ] [ * ]. These transactions require [ * ] approval. AFC - CREDIT POLICY
Auction Purchases
