Backup Servicer Event of Default. For purposes of this Agreement, any of the following shall constitute a “Backup Servicer Event of Default”:
Backup Servicer Event of Default. Upon a Backup Servicer Event of Default, the Backup Servicer shall promptly notify the Indenture Trustee who shall distribute such notice to the Noteholders, that a Backup Servicer Event of Default has occurred.
Backup Servicer Event of Default. 16 Section 4.2. Consequences of a Backup Servicer Event of Default 17 Section 4.3. Backup Servicing Termination 17 Section 4.4. Return of Confidential Information 17 ARTICLE V MISCELLANEOUS 18 Section 5.1. Notices, Etc 18 Section 5.2. Successors and Assigns 19 TABLE OF CONTENTS (continued) Page Section 5.3. No Bankruptcy Petition Against the Seller and the Issuer 19 Section 5.4. Reserved 19 Section 5.5. Severability Clause 19 Section 5.6. Amendments 19 Section 5.7. Governing Law; WAIVER OF JURY TRIAL; JURISDICTION 20 Section 5.8. Counterparts 20 Section 5.9. Headings 20 Section 5.10. AML Law 20 Section 5.11. Concerning the Owner Trustee 21 BACKUP SERVICING AGREEMENT BACKUP SERVICING AGREEMENT (the “Agreement”), dated as of [_], 2024, among COMPUTERSHARE TRUST COMPANY, N.A., a national banking association organized under the laws of the United States (“Computershare”), as backup servicer (the “Backup Servicer”), and as trust collateral agent (the “Trust Collateral Agent”), CREDIT ACCEPTANCE CORPORATION, a Michigan corporation (“Credit Acceptance” or the “Servicer”), CREDIT ACCEPTANCE FUNDING LLC 2024-3, a Delaware limited liability company (the “Seller”) and CREDIT ACCEPTANCE AUTO LOAN TRUST 2024-3, a Delaware statutory trust (the “Trust” or the “Issuer”).
Backup Servicer Event of Default. 16 Section 4.2........... Consequences of a Backup Servicer Event of Default 17 Section 4.3........... Backup Servicing Termination 17 Section 4.4........... Return of Confidential Information 17 ARTICLE V MISCELLANEOUS 17 Section 5.1........... Notices, Etc 17 Section 5.2........... Successors and Assigns 19
Backup Servicer Event of Default. For purposes of this Agreement, any of the following shall constitute a “Backup Servicer Event of Default”: (a) Failure on the part of the Backup Servicer duly to observe or perform in any material respect any covenant or agreement of the Backup Servicer set forth in this Agreement, which failure continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Backup Servicer by the Majority Noteholders. (b) Any failure by the Backup Servicer (x) after the Assumption Date to deposit to the Collection Account any amount required to be deposited by the Servicer (except for any amounts required to be deposited by the Servicer under Section 4.07 of the Sale and Servicing Agreement) and such failure shall continue unremedied for a period of two (2) days or (y) to deliver to the Trust Collateral Agent or the Noteholders the Backup Servicer’s Certificate on the related Distribution Date that shall continue unremedied for a period of one (1) Business Day. (c) The entry of a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver, or liquidator for the Backup Servicer in any insolvency, readjustment of debt, marshalling of assets and liabilities, or similar proceedings, or for the winding up or liquidation of its respective affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days or the entry of any decree or order for relief in respect of the Backup Servicer 22650956.4 17 under any bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, or similar law, whether now or hereafter in effect, which decree or order for relief continues unstayed and in effect for a period of sixty (60) consecutive days. (d) The consent by the Backup Servicer to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities, or similar proceedings of or relating to the Backup Servicer or relating to substantially all of its property; or the admission by the Backup Servicer in writing of its inability to pay its debts generally as they become due, the filing by the Backup Servicer of a petition to take advantage of any applicable insolvency or reorganization statute, the making by the Backup Servicer of an assignment for the ...
