Collection of Receivable Payments; Modifications of Receivables. (a) Consistent with the standards, policies and procedures required by this Agreement, the Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection procedures as it follows with respect to all comparable automobile receivables that it services for itself or others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies and the Other Conveyed Property in such manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust with respect thereto, including directing the Trust to sell the Receivables pursuant to Section 4.3(c) hereof. The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable. (b) The Servicer may (A) at any time agree to a modification or amendment of a Receivable in order to (i) change on one or more occasions the Obligor’s regular monthly due date to a date that shall in no event be later than 30 days in total after the original monthly due date of that Receivable or (ii) re-amortize the Scheduled Receivables Payments on the Receivable following a partial prepayment of principal, in accordance with its customary procedures or (iii) increase the Principal Balance and re-amortize the Scheduled Receivables Payments on the Receivable following a mechanical re-write; provided, that the number of Receivables that are subject to a mechanical re-write shall not exceed, in the aggregate, 2% of the number of Receivables as of the Closing Date, or (B) may direct the Trust to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in good faith that such extension, modification, amendment or sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust. (c) The Servicer may grant payment extensions on, or other modifications or amendments to, a Receivable (in addition to those modifications permitted by Section 4.2(b) hereof), in accordance with its customary procedures if the Servicer believes in good faith that such extension, modification or amendment is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust; provided, however, that: (i) The aggregate period of all extensions on a Receivable shall not exceed eight months; (ii) a Receivable may be extended no more than twice within a twelve month period unless the regional manager approves and in no event may a Receivable be extended more than four times within its lifetime; (iii) In no event may a Receivable be extended beyond the Collection Period immediately preceding the latest Final Scheduled Distribution Date; (iv) The average Monthly Extension Rate for (A) any three consecutive calendar months shall not exceed 4.0%; and (v) So long as an Insurer Default shall not have occurred and be continuing, the Servicer shall not amend or modify a Receivable (except as provided in Section 4.2(b) and this Section 4.2(c)) without the consent of the Insurer or a Note Majority (if an Insurer Default shall have occurred and be continuing). With respect to clause (iv) of this Section 4.2(c), in the event the average of the Monthly Extension Rates calculated with respect to three consecutive calendar months exceeds 4.0% (which information shall be set forth in the related Servicer’s Certificate), the Servicer shall, on the third such Accounting Date, purchase from the Trust the Receivables with respect to which payment had been extended (starting with the Receivables most recently so extended) in an aggregate Principal Balance equal to the product of (i) the difference between such average of Monthly Extension Rates and 4.0% and (ii) the Aggregate Principal Balance, and pay the related Purchase Amount on the related Determination Date; provided, however, that in the event the Backup Servicer shall be acting as Servicer hereunder, the foregoing sentence shall apply only in respect of Receivables as to which payments had been extended by such Backup Servicer.
Appears in 1 contract
Samples: Sale and Servicing Agreement (UPFC Auto Receivables Trust 2007-B)
Collection of Receivable Payments; Modifications of Receivables. (a) Consistent with the standards, policies and procedures required by this Agreement, the Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection procedures as set forth in its Credit and Collection Policy and as it follows with respect to all comparable automobile receivables that it services for itself its own account or the account of others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies Policies, the Receivables Purchase Agreement and the Other Conveyed Property in such manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust Issuer with respect thereto, including directing the Trust to sell the Receivables pursuant to Section 4.3(c) hereof. The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable.
(b) The Servicer may (A) at any time agree to a modification or amendment of a Receivable in order to (i) change on one or more occasions the Obligor’s 's regular monthly due date to another date within the Collection Period in which such due date occurs, (ii) change the Obligor's regular due date to a date that shall in no event be later than 30 days the Collection Period following the Collection Period in total after the original monthly which such due date occurs; provided, however, that any such change shall only be permitted once during the term of that a Receivable or (iiiii) re-amortize reamortize the Scheduled Receivables Payments on the Receivable following a partial prepayment of principal, principal (other than any such reamortization that results in accordance with its customary procedures or (iii) increase the Principal Balance and re-amortize the Scheduled Receivables Payments on the Receivable following a mechanical re-write; provided, that the number of Receivables that are subject to a mechanical re-write shall not exceed, in the aggregate, 2% of the number of Receivables as of the Closing Date, or (B) may direct the Trust to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in good faith that such payment extension, modification, amendment or sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust).
(c) The Servicer may grant payment extensions on, or agree to other modifications or amendments to, a Receivable (in addition to those modifications permitted by Section 4.2(b3.2(b)) hereof), in accordance with its customary procedures if the Servicer believes in good faith that such extension, modification or amendment is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust; provided, however, thatonly as set forth below:
(i) The aggregate period of all extensions on a Receivable shall not exceed eight months;
(ii) a Receivable may be extended no more than twice within a twelve month period unless the regional manager approves and in In no event may a Receivable be extended more than four two times within its lifetime;
(iii) In no event may a any twelve month period, more than three times during the term of the Receivable be extended or beyond the Collection Period immediately six months preceding the latest Final Scheduled Distribution Payment Date;
(iv) The average Monthly Extension Rate for ; provided, however, that (A) any no extension may be granted unless at least three consecutive calendar months shall not exceed 4.0%Scheduled Payments have been made on the Receivable, (B) no second extension may be granted unless six Scheduled Payments have been made on the Receivable and (C) no third extension may be granted unless nine Scheduled Payments have been made on the Receivable; and
(vii) So long as an Insurer Default shall not have occurred and be continuing, the The Servicer shall not amend or modify a Receivable (except as provided otherwise permitted in Section 4.2(b3.2(b) and this Section 4.2(c3.2(c)) without the consent of the Note Insurer or a Note Majority (if an Insurer Default shall have occurred and be continuing). With respect to clause (iv) Notwithstanding any third-party processing arrangement, or any of the provisions of this Section 4.2(c), in the event the average of the Monthly Extension Rates calculated with respect Agreement relating to three consecutive calendar months exceeds 4.0% (which information shall be set forth in the related Servicer’s Certificate)any third-party processing arrangement, the Servicer shallshall remain obligated and liable to the Issuer, on the third such Accounting Date, purchase from Note Insurer and the Trust Noteholders for servicing and administering the Receivables with respect to which payment had been extended (starting and the Other Conveyed Property in accordance with the Receivables most recently so extendedprovisions of this Agreement without diminution of such obligation or liability by virtue thereof.
(d) in The Servicer shall remit all payments by or on behalf of the Obligors (including Liquidation Proceeds) received directly by the Servicer or by an aggregate Principal Balance equal Originator to the product of (i) the difference between such average of Monthly Extension Rates and 4.0% and (ii) the Aggregate Principal BalanceCollection Account as soon as practicable, and pay the related Purchase Amount on the related Determination Date; provided, however, that but in the no event the Backup Servicer shall be acting as Servicer hereunder, the foregoing sentence shall apply only in respect of Receivables as to which payments had been extended by such Backup Servicerlater than three Business Days after receipt thereof.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (Reliance Acceptance Group Inc)
Collection of Receivable Payments; Modifications of Receivables. (a) Consistent with the standards, policies and procedures required by this Agreement, the Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection procedures as it follows with respect to all comparable automobile receivables that it services for itself or others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies and the Other Conveyed Property in such manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust with respect thereto, including directing the Trust Issuer to sell the Receivables pursuant to Section 4.3(c) hereof. The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable.
(b) The Servicer may (A) at any time agree to a modification or amendment of a Receivable in order to (i) change on one or more occasions the Obligor’s regular monthly due date to a date that shall in no event be later than 30 days in total after the original monthly due date of that Receivable or (ii) re-amortize the Scheduled Receivables Payments on the Receivable following a partial prepayment of principal, in accordance with its customary procedures or (iii) increase the Principal Balance and re-amortize the Scheduled Receivables Payments on the Receivable following a mechanical re-write; provided, that the number of Receivables that are subject to a mechanical re-write shall not exceed, in the aggregate, 2% of the number of Receivables as of the Closing Date, or (B) may direct the Trust Issuer to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in good faith that such extension, modification, amendment or sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust.
(c) The Servicer may grant payment extensions on, or other modifications or amendments to, a Receivable (in addition to those modifications permitted by Section 4.2(b)) hereof), in accordance with its customary procedures if the Servicer believes in good faith that such extension, modification modification, amendment or amendment sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust; provided, however, that:
(i) The aggregate period of all extensions on a Receivable shall not exceed eight months;
(ii) a Receivable may be extended no more than twice within a twelve month period unless the regional manager approves and in no event may a Receivable be extended more than four times within its lifetime;
(iii) In no event may a Receivable be extended beyond the Collection Period immediately preceding the latest Final Scheduled Distribution Date;
(iviii) The average Monthly Extension Rate for (A) any three consecutive calendar months, other than the months of December, January and February, shall not exceed 4.03.0% and (B) for the calendar months of December, January and February, shall not exceed 3.5%; and
(viv) So long as an Insurer Default shall not have occurred and be continuing, the Servicer shall not amend or modify a Receivable (except as provided in Section 4.2(b) and this Section 4.2(c)) without the consent of the Insurer or a Note Majority (if an Insurer Default shall have occurred and be continuing). With respect to clause (iviii) of this Section 4.2(c), in the event the average of the Monthly Extension Rates calculated with respect to (A) three consecutive calendar months, other than the months of December, January and February, exceeds 4.03.0% and (B) for the calendar months of December, January and February, exceeds 3.5% (in each case, which information shall be set forth in the related Servicer’s Certificate), the Servicer shall, on the third such Accounting Date, purchase from the Trust the Receivables with respect to which payment had been extended (starting with the Receivables most recently so extended) in an aggregate Principal Balance equal to the product of (i) the difference between such average of Monthly Extension Rates and 4.03.0% and (ii) the Aggregate Principal Balance, and pay the related Purchase Amount on the related Determination Date; provided, however, that in the event the Backup Servicer shall be acting as Servicer hereunder, the foregoing sentence shall apply only in respect of Receivables as to which payments had been extended by such Backup Servicer.
Appears in 1 contract
Samples: Sale and Servicing Agreement (UPFC Auto Receivables Trust 2005-B)
Collection of Receivable Payments; Modifications of Receivables. (a) Consistent with the standards, policies and procedures required by this Agreement, the Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection procedures as it follows with respect to all comparable automobile receivables that it services for itself or others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies and the Other Conveyed Property in such manner as will, in the reasonable judgment of the Master Servicer, maximize the amount to be received by the Trust with respect thereto, including directing the Trust to sell the Receivables pursuant to Section 4.3(c) hereof. The Master Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable.
(b) The Master Servicer may (A) at any time agree to a modification or amendment of a Receivable in order to (i) change on one or more occasions the Obligor’s 's regular monthly due date to a date that shall in no event be later than within 30 days in total after the original monthly of when such due date of that Receivable occurs or (ii) re-amortize the Scheduled Receivables Payments scheduled payments on the Receivable following a partial prepayment of principal, in accordance with its customary procedures or (iii) increase the Principal Balance and re-amortize the Scheduled Receivables Payments on the Receivable following a mechanical re-write; provided, however, that no such change shall extend the number maturity date of Receivables that are subject to a mechanical re-write shall not exceed, in the aggregate, 2% of the number of Receivables as of the Closing Date, or (B) may direct the Trust to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in good faith that such extension, modification, amendment or sale is necessary to avoid a default on such any Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust.
(c) The Master Servicer may grant payment extensions on, or other modifications or amendments to, a Receivable (in addition to including those modifications permitted by Section 4.2(b)) hereof), in accordance with its customary procedures if the Master Servicer believes in good faith that such extension, modification or amendment is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust; provided, however, thatthat unless otherwise specified in any Series Supplement:
(i) The aggregate period of all extensions on a Receivable shall not exceed eight six months; provided, however, that not more than two months can be in any consecutive twelve month period;
(ii) a Receivable may be extended no more than twice within a twelve month period unless the regional manager approves and in no event may a Receivable be extended more than four times within its lifetime;
(iii) In no event may a Receivable be extended by the Master Servicer beyond the Collection Period immediately preceding the latest Final Scheduled Distribution Date;Date of the Notes with respect to the related Series; and (iii) As of any Determination Date the number of Receivables included in a Series Trust Estate the term of which have been extended during the preceding 12-month period shall not exceed 8% of the number of Receivables in such Series Trust Estate at the beginning of the preceding 12-month period.
(ivd) The average Monthly Extension Rate Except as otherwise provided below, the Master Servicer shall deposit collections on or with respect to Receivables into the Master Collection Account as promptly as possible after the date of processing of such collections, but in no event later than the second Business Day following the date of processing. Subject to the express terms of any Series Supplement, but notwithstanding anything else in this Agreement to the contrary, for so long as (i) Household remains the Master Servicer and maintains a commercial paper rating of not less than A-1 by Standard & Poor's and P-1 by Moody's (or such other rating below A-1 or P-1, as the case may be, which is satisfactory to the Rating Agency) and for five Business Days following any reduction of any such rating or (ii) a Master Servicer Credit Facility is maintained in effect by the Master Servicer acceptable in form and substance to the Rating Agency (such acceptability to be evidenced in writing by the Rating Agency to the effect that failure to make the aforementioned deposit on the basis of the maintenance of the Master Servicer Credit Facility will not adversely affect the then current rating of the Notes), issued by a depository institution or insurance having a rating on its (A) any three consecutive calendar months shall not exceed 4.0%; short-term obligations of at least P-1 by Moody's and A-1 by Standard & Poor's and
(v) So long as an Insurer Default shall not have occurred and be continuing, the Servicer shall not amend or modify a Receivable (except as provided in Section 4.2(b) and this Section 4.2(c)) without the consent of the Insurer or a Note Majority (if an Insurer Default shall have occurred and be continuing). With respect to clause (iv) of this Section 4.2(c), in the event the average of the Monthly Extension Rates calculated with respect to three consecutive calendar months exceeds 4.0% (which information shall be set forth in the related Servicer’s Certificate), the Servicer shall, on the third such Accounting Date, purchase from the Trust the Receivables with respect to which payment had been extended (starting with the Receivables most recently so extended) in an aggregate Principal Balance equal to the product of (i) the difference between such average of Monthly Extension Rates and 4.0% and (ii) the Aggregate Principal Balance, and pay the related Purchase Amount on the related Determination Date; provided, however, that in the event the Backup Servicer shall be acting as Servicer hereunder, the foregoing sentence shall apply only in respect of Receivables as to which payments had been extended by such Backup Servicer.
Appears in 1 contract
Samples: Master Sale and Servicing Agreement (Household Automotive Trust v Series 2000 2)
Collection of Receivable Payments; Modifications of Receivables. (a) Consistent with the standards, policies and procedures required by this AgreementAgreement and the Credit and Collection Policy, the Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection procedures as it follows with respect to all comparable automobile receivables that it services for itself or others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies and the Other Conveyed Property Related Security in such manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust Purchaser with respect thereto, including directing the Trust to sell the Receivables pursuant to Section 4.3(c) hereof. The Servicer is authorized in its reasonable discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable.
(b) The So long as no Servicer Termination Event shall have occurred and be continuing, and in accordance with the Credit and Collection Policy, the Servicer may (A) at any time agree to a modification or amendment of a Receivable in order to (i) change on one or more occasions the Obligor’s 's regular monthly due date to a date that shall within the Settlement Period in no event be later than 30 days in total after the original monthly which such due date of that Receivable occurs or (ii) re-amortize the Scheduled Receivables Payments on the Receivable following a partial prepayment of principal, in accordance with its customary procedures or (iii) increase the Principal Balance and re-amortize the Scheduled Receivables Payments on the Receivable following a mechanical re-write; provided, that the number of Receivables that are subject to a mechanical re-write shall not exceed, in the aggregate, 2% of the number of Receivables as of the Closing Date, or (B) may direct the Trust to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in good faith that such extension, modification, amendment or sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust.
(c) The Servicer may grant payment extensions on, or other modifications or amendments to, a Receivable (in addition to those modifications permitted by Section 4.2(b) hereof), in accordance with its customary procedures if the Servicer believes in good faith that such extension, modification or amendment is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust Collections with respect to such Receivable, and is otherwise in the best interests of the Trust; provided, however, that:Purchaser.
(i) The aggregate period of all extensions on a Receivable shall not exceed eight months;
(ii) a Receivable may be extended no more than twice within a twelve month period unless the regional manager approves and in no event may a Receivable be extended more than four times within its lifetime;
(iii) In no event may a Receivable be extended beyond the Collection Period immediately preceding the latest Final Scheduled Distribution Date;
(iv) The average Monthly Extension Rate for (A) any three consecutive calendar months shall not exceed 4.0%; and
(vc) So long as an Insurer Default no Servicer Termination Event shall not have occurred and be continuing, and in accordance with the Credit and Collection Policy, the Servicer shall not amend may grant payment extensions on, or modify other modifications or amendments to, a Receivable (except as provided in addition to those modifications permitted by Section 4.2(b) and this Section 4.2(c2.2(b)) without in accordance with the consent of Credit and Collection Policy if the Insurer Servicer believes in good faith that such extension, modification or amendment is necessary to avoid a Note Majority (if an Insurer Default shall have occurred and be continuing). With respect to clause (iv) of this Section 4.2(c)default on such Receivable, in the event the average of the Monthly Extension Rates calculated will maximize Collections with respect to three consecutive calendar months exceeds 4.0% (which information such Receivable and is otherwise in the best interests of the Purchaser; provided, that to the extent that documentation exists for any such amendment, modification or extension, such documentation shall be set forth delivered by the Servicer to the Custodian promptly after execution thereof. The Servicer shall notify or direct Obligors to make all payments on the Receivables, whether by cheque or by direct debit of the Obligor's bank account, to be made directly to the following account held in the related name of the Servicer’s Certificate: SWIFT address: XXXXXXXX, Financial Institution code: 002 Account # 0000000, transit # 80002 (the "Depository Account") held at The Bank of Nova Scotia (the "Depository Bank"). The Servicer shall notify or direct the Depository Bank to deposit all payments on the Receivables into the Depository Account no later than the Business Day after receipt, and to cause all amounts credited to the Depository Account on account of such payments to be transferred to the Collection Account no later than the second Business Day after receipt of such payments. The Servicer shall be obligated and liable to the Purchaser, the Collateral Agent and Secured Parties for servicing and administering the Receivables and the Related Security in accordance with the provisions of this Agreement without diminution of such obligation or liability by virtue thereof. In the event of a termination of the Servicer, the successor Servicer shall assume all of the rights and obligations of the outgoing Servicer under this Agreement. The outgoing Servicer shall, on upon request of the third such Accounting DateCollateral Agent, purchase from but at the Trust expense of the Receivables with respect to which payment had been extended (starting with the Receivables most recently so extended) in an aggregate Principal Balance equal outgoing Servicer, deliver to the product of (i) successor Servicer all documents and records relating to the difference between such average of Monthly Extension Rates and 4.0% and (ii) the Aggregate Principal BalanceDepository Account, if any, and pay the related Purchase Amount on the related Determination Date; provided, however, that an accounting of amounts collected and held in the event the Backup such account.
(d) Servicer shall be acting remit all payments by or on behalf of the Obligors received directly by the Servicer to the Depository Bank for further deposit into the Collection Account, as Servicer hereundersoon as practicable, but in no event later than two Business Days after receipt thereof and shall use its best efforts to ensure that any payments that should have been deposited to the foregoing sentence shall apply only Collection Account but which, in respect of Receivables as error, were deposited to which payments had been extended by such Backup Serviceranother account are promptly deposited into the Collection Account.
Appears in 1 contract
Samples: Servicing and Custodian Agreement (Americredit Corp)
Collection of Receivable Payments; Modifications of Receivables. (a) Consistent with the standards, policies and procedures required by this Agreement, the Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection procedures as it follows with respect to all comparable automobile receivables that it services for itself or others and otherwise act with respect to the Receivables, the Dealer Agreements, the Dealer Assignments, the Insurance Policies and the Other Conveyed Property in such manner as will, in the reasonable judgment of the Servicer, maximize the amount to be received by the Trust with respect thereto, including directing the Trust Issuer to sell the Receivables pursuant to Section 4.3(c) hereof). The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other similar fees that may be collected in the ordinary course of servicing any Receivable.
(b) The Servicer may (A) at grant extensions, rebates, deferrals, amendments, modifications or adjustments with respect to any time agree to a modification or amendment of a Receivable in order to (i) change on one or more occasions the Obligor’s regular monthly due date to a date that shall in no event be later than 30 days in total after the original monthly due date of that Receivable or (ii) re-amortize the Scheduled Receivables Payments on the Receivable following a partial prepayment of principal, in accordance with its customary procedures or (iii) increase the Principal Balance Servicing Policies and re-amortize the Scheduled Receivables Payments on the Receivable following a mechanical re-write; provided, that the number of Receivables that are subject to a mechanical re-write shall not exceed, in the aggregate, 2% of the number of Receivables as of the Closing Date, or (B) may direct the Trust to sell the Receivables pursuant to Section 4.3 hereof if the Servicer believes in good faith that such extension, modification, amendment or sale is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the Trust.
(c) The Servicer may grant payment extensions on, or other modifications or amendments to, a Receivable (in addition to those modifications permitted by Section 4.2(b) hereof), in accordance with its customary procedures if the Servicer believes in good faith that such extension, modification or amendment is necessary to avoid a default on such Receivable, will maximize the amount to be received by the Trust with respect to such Receivable, and is otherwise in the best interests of the TrustProcedures; provided, however, that:
that [any such action by the Servicer is a Permitted Modification and] if the Servicer (i) The aggregate period of all extensions on extends a Receivable shall not exceed eight months;
(ii) a Receivable may be extended no more than twice within a twelve month period unless the regional manager approves and in no event may a Receivable be extended more than four times within its lifetime;
(iii) In no event may a Receivable be extended beyond the Collection Period immediately preceding the latest Final Scheduled Distribution Date;, or (ii) reduces the Amount Financed or APR with respect to any Receivable, it [will][may] repurchase such Receivable in the manner provided in Section 4.7 if such change in the Receivable would materially and adversely affect the interests of the Noteholders, unless the Servicer is required to take such action by law (including, without limitation, by the Servicemembers Civil Relief Act) or court order. [Should the Servicer grant an extension, rebate, deferral, amendment, modification or adjustment with respect to any Receivable in accordance with its Servicing Policies and Procedures, but such action is not a Permitted Modification, such action shall not be a breach of this Agreement so long as the Servicer shall repurchase such Receivable in the manner provided in Section 4.7 and in such a manner as to allow the Trust to maintain its status as a fixed investment trust described in Treasury Regulation Section 301.7701-4(c) that is treated as a grantor trust under subtitle A, chapter 1, subchapter J, part I, subpart E of the Code.]
(ivc) Subject to the proviso of the first sentence in Section 4.2(b), the Servicer or its Affiliates may engage in any marketing practice or promotion of any sale of any products, goods or services to Obligors with respect to the Receivables so long as such practices, promotions or sales are offered to obligors of comparable motor vehicle receivables serviced by the Servicer for itself and others, whether or not such practices, promotions or sales might result in a decrease in the aggregate amount of payments on the Receivables, prepayments or faster or slower timing of the payment of the Receivables.
(d) The average Servicer shall remit all payments by or on behalf of the Obligors received directly by the Servicer to the Collection Account as soon as practicable, but in no event later than the second (2nd) Business Day after receipt thereof; provided, however, that if the Monthly Extension Rate for (A) any three consecutive calendar months shall not exceed 4.0%; and
(v) So long as an Insurer Default shall not have occurred and be continuingRemittance Condition is satisfied, then the Servicer shall not amend be required to deposit into the Collection Account all payments by or modify on behalf of the Obligors received directly by the Servicer until noon, New York City time, on the Business Day prior to the Distribution Date immediately following receipt thereof. (For purposes of the preceding sentence, “receipt” of a payment shall mean the initial deposit thereof in the Servicer’s bank account.)
(e) [Reserved].
(f) GM Financial shall not cause or permit the substitution of the Financed Vehicle relating to a Receivable unless: (except as provided in Section 4.2(bi) and this Section 4.2(c)) without the consent substitution is a replacement of the Insurer Financed Vehicle originally financed under the related Receivable; (ii) the Financed Vehicle originally financed under the related Receivable was either (x) insured under an Insurance Policy as required under Section 4.4(a) at the time of a casualty loss that is treated as a total loss under such Insurance Policy, (y) deemed to be a “lemon” pursuant to applicable State law and repurchased by the related Dealer or (z) the subject of an order by a Note Majority court of competent jurisdiction directing GM Financial to substitute another vehicle under the related Receivable; (iii) the related Receivable is not more than thirty (30) days delinquent; (iv) the Obligor is deemed to be in “good standing” by the Servicer and is not in breach of any requirement under the related Receivable; (v) the replacement Financed Vehicle has a book value (N.A.D.A.) at least equal to the book value (N.A.D.A.) of the Financed Vehicle that is being replaced, measured immediately before the casualty loss or replacement by the Dealer and (vi) as of the date of such substitution, the replacement Financed Vehicle’s mileage is no greater than the mileage on the Financed Vehicle that is being replaced; provided, however, that if an Insurer Default shall have occurred and be continuing). With respect the substitution is made pursuant to clause (ivii)(z), above, clauses (iii) through (vi) inclusive, shall not be applicable. [GM Financial shall not cause or permit the substitution of Financed Vehicles relating to Receivables having an original aggregate Principal Balance greater than __ percent (__%) of this Section 4.2(cthe Original Pool Balance, (the “Substitution Limit”). In the event that the Substitution Limit is exceeded for any reason, (i) GM Financial shall, on or before the next following Accounting Date, repurchase a sufficient number of such Receivables to cause the aggregate original Principal Balances of such Receivables to be less than the Substitution Limit or (ii) if GM Financial is not the Servicer and the Servicer has caused substitutions to be made hereunder pursuant to the circumstances described in clause (ii)(x), in the event the average of the Monthly Extension Rates calculated with respect to three consecutive calendar months exceeds 4.0% (which information shall be set forth in the related Servicer’s Certificate)above, the Servicer shall, on or before the third such next following Accounting Date, purchase from repurchase a sufficient number of such Receivables to cause the Trust aggregate original Principal Balances of such Receivables to be less than the Receivables with respect to which payment had been extended (starting with the Receivables most recently so extended) in an aggregate Principal Balance equal to the product of (i) the difference between such average of Monthly Extension Rates and 4.0% and (ii) the Aggregate Principal Balance, and pay the related Purchase Amount on the related Determination Date; provided, however, that in the event the Backup Servicer shall be acting as Servicer hereunder, the foregoing sentence shall apply only in respect of Receivables as to which payments had been extended by such Backup ServicerSubstitution Limit.]
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