Common use of Collection and Application of Contract Payments Clause in Contracts

Collection and Application of Contract Payments. The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Contracts as and when the same shall become due and shall follow such collection procedures as it follows with respect to all comparable receivables that it services for itself or others and, in any event, with no less degree of skill and care than would be exercised by a prudent servicer of similar prime, sub-prime and non-prime motor vehicle retail installment sales contracts. The Servicer may, in its discretion and in accordance with its customary servicing procedures, grant extensions, rebates or adjustments on a Contract, and amend or modify any Contract which shall not modify the APR, the number or amount of the Contract Scheduled Payment; provided, that in no event shall a Contract be extended such that any payment thereon would be due after [ ]; provided further that no extensions may be granted by the Servicer until at least six Contract Scheduled Payments have been received by the Servicer under the related Contract and thereafter only one extension not to exceed one month may be granted each 12 months for one of the following reasons: major repair, major medical or other major events or catastrophes such as house fire, flood, hurricane or tornado damage or similar occurrences; provided, however, that no more than four extensions shall be permitted on any Contract. The Servicer may in its discretion waive any late payment charge or any other fees, not including interest on the outstanding Principal Balance, that may be collected in the ordinary course of servicing a Contract. Notwithstanding anything in this Agreement to the contrary, the Servicer may refinance any Contract that would cause the average Extension Ratio for any three consecutive Collection Periods to exceed [ ]% by accepting a new promissory note from the related Obligor and depositing the full outstanding Principal Balance of such Contract into the Collection Account. The receivable created by such refinancing shall not be the property of the Issuer.

Collection and Application of Contract Payments. The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Contracts as and when the same shall become due and shall follow such collection procedures as it follows with respect to all comparable receivables that it services for itself or others and, in any event, with no less degree of skill and care than would be exercised by a prudent servicer of similar prime, sub-prime and non-prime motor vehicle retail installment sales contracts. The Servicer may, in its discretion and in accordance with its customary servicing procedures, grant extensions, rebates or adjustments on a Contract, and amend or modify any Contract which shall not modify the APR, the number or amount of the Contract Scheduled Payment; provided, that in no event shall a Contract be extended such that any payment thereon would be due after [ ]August 15, 2014; provided further that no extensions may be granted by the Servicer until at least six Contract Scheduled Payments have been received by the Servicer under the related Contract and thereafter only one extension not to exceed one month may be granted each 12 months for one of the following reasons: major repair, major medical or other major events or catastrophes such as house fire, flood, hurricane or tornado damage or similar occurrences; provided, however, that no more than four extensions shall be permitted on any Contract. The Servicer may in its discretion waive any late payment charge or any other fees, not including interest on the outstanding Principal Balance, that may be collected in the ordinary course of servicing a Contract. Notwithstanding anything in this Agreement to the contrary, the Servicer may refinance any Contract that would cause the average Extension Ratio for any three consecutive Collection Periods to exceed [ ]4.0% by accepting a new promissory note from the related Obligor and depositing the full outstanding Principal Balance of such Contract into the Collection Account. The receivable created by such refinancing shall not be the property of the Issuer.

Collection and Application of Contract Payments. The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Contracts as and when the same shall become due and shall follow such collection procedures as it follows with respect to all comparable receivables that it services for itself or others and, in any event, with no less degree of skill and care than would be exercised by a prudent servicer of similar prime, sub-prime and non-prime motor vehicle retail installment sales contracts. The Servicer may, in its discretion and in accordance with its customary servicing procedures, grant extensions, rebates or adjustments on a Contract, and amend or modify any Contract which shall not modify the APR, the number or amount of the Contract Scheduled Payment; provided, that in no event shall a Contract be extended such that any payment thereon would be due after [ ]October 15, 2014; provided further that no extensions may be granted by the Servicer until at least six Contract Scheduled Payments have been received by the Servicer under the related Contract and thereafter only one extension not to exceed one month may be granted each 12 months for one of the following reasons: major repair, major medical or other major events or catastrophes such as house fire, flood, hurricane or tornado damage or similar occurrences; provided, however, that no more than four extensions shall be permitted on any Contract. The Servicer may in its discretion waive any late payment charge or any other fees, not including interest on the outstanding Principal Balance, that may be collected in the ordinary course of servicing a Contract. Notwithstanding anything in this Agreement to the contrary, the Servicer may refinance any Contract that would cause the average Extension Ratio for any three consecutive Collection Periods to exceed [ ]4.0% by accepting a new promissory note from the related Obligor and depositing the full outstanding Principal Balance of such Contract into the Collection Account. The receivable created by such refinancing shall not be the property of the Issuer.

Collection and Application of Contract Payments. The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Contracts as and when the same shall become due and shall follow such collection procedures as it follows with respect to all comparable receivables that it services for itself or others and, in any event, with no less degree of skill and care than would be exercised by a prudent servicer of similar prime, sub-prime and non-prime motor vehicle retail installment sales contracts. The Servicer may, in its discretion and in accordance with its customary servicing procedures, grant extensions, rebates or adjustments on a Contract, and amend or modify any Contract which shall not modify the APR, the number or amount of the Contract Scheduled Payment; provided, that in no event shall a Contract be extended such that any payment thereon would be due after [ ]September 15, 2014; provided further that no extensions may be granted by the Servicer until at least six Contract Scheduled Payments have been received by the Servicer under the related Contract and thereafter only one extension not to exceed one month may be granted each 12 months for one of the following reasons: major repair, major medical or other major events or catastrophes such as house fire, flood, hurricane or tornado damage or similar occurrences; provided, however, that no more than four extensions shall be permitted on any Contract. The Servicer may in its discretion waive any late payment charge or any other fees, not including interest on the outstanding Principal Balance, that may be collected in the ordinary course of servicing a Contract. Notwithstanding anything in this Agreement to the contrary, the Servicer may refinance any Contract that would cause the average Extension Ratio for any three consecutive Collection Periods to exceed [ ]4.0% by accepting a new promissory note from the related Obligor and depositing the full outstanding Principal Balance of such Contract into the Collection Account. The receivable created by such refinancing shall not be the property of the Issuer.