Common use of Collection and Application of Security Deposits Clause in Contracts

Collection and Application of Security Deposits. The Servicer shall retain any Security Deposit remitted to it or the Trust as agent and bailee for the Trust, and shall apply the proceeds of such Security Deposits in accordance with applicable law, its Customary Servicing Practices and the User Leases, including but not limited to using the Security Deposit in respect of any User Lease for the payment of any amount resulting from the related End User's default or failure to pay all amounts required to be paid under such User Lease or resulting from excess mileage or excess wear and tear to the related Leased Vehicle. In the event that any User Lease becomes a Charged-off Lease or, if earlier, the related Leased Vehicle is repossessed, then the related Security Deposit, to the extent permitted by such User Lease and applicable law, shall thereby become a Collection. Each Security Deposit, after deduction for amounts applied towards the payment of any amount resulting from the related End User's default or failure to pay any amounts required to be paid under such User Lease or damage to the related Leased Vehicle, shall be returned to the related End User by the

Collection and Application of Security Deposits. The Servicer shall retain any Security Deposit remitted to it or the Trust as agent and bailee for the Trust, and shall apply the proceeds of such Security Deposits in accordance with applicable law, its Customary Servicing Practices and the User Leases, including but not limited to using the Security Deposit in respect of any User Lease for the payment of any amount resulting from the related End User's ’s default or failure to pay all amounts required to be paid under such User Lease or resulting from excess mileage or excess wear and tear to the related Leased Vehicle. In the event that any User Lease becomes a Charged-off Lease or, if earlier, the related Leased Vehicle is repossessed, then the related Security Deposit, to the extent permitted by such User Lease and applicable law, shall thereby become a Collection. Each Security Deposit, after deduction for amounts applied towards the payment of any amount resulting from the related End User's ’s default or failure to pay any amounts required to be paid under such User Lease or damage to the related Leased Vehicle, shall be returned to the related End User by thethe Servicer; provided, however, that the Servicer may retain a Security Deposit (including any interest thereon) until the End User has repaid all other charges owed under such User Lease.