Common use of Credit and Collection Policy and Contracts Clause in Contracts

Credit and Collection Policy and Contracts. Subject to compliance with all Requirements of Law, the applicable Credit Card Originator and the Servicer shall comply with and perform its obligations under the Contracts relating to the Accounts and the Credit and Collection Policy except insofar as any failure so to comply or perform would not materially and adversely affect the rights of the Trust and the beneficiaries thereof. Subject to compliance with all Requirements of Law, the Servicer or such Credit Card Originator may change the terms and provisions of the Contracts or the Credit and Collection Policy with respect to any of the Accounts in any respect (including the calculation of the amount, or the timing, of charge-offs and the Periodic Finance Charges and other fees to be assessed thereon) only if in the reasonable judgment of the Servicer or such Credit Card Originator, as applicable, (i) at the time of such action, the Servicer or Credit Card Originator reasonably believes that such action will not materially and adversely affect the rights of the Trust or the beneficiaries thereof, and (ii) such change is made applicable to the comparable segment of the revolving credit accounts owned by the Credit Card Originator or serviced by the Servicer which have characteristics the same as, or substantially similar to, the Accounts that are the subject of such change, except as otherwise restricted by an endorsement, sponsorship, or other agreement between HSBC Nevada or an Affiliate of HSBC Nevada (or Credit Card Originator if HSBC Nevada is not the Credit Card Originator) and an unrelated third party or by the terms of the Contracts. The Transferor further covenants that the Transferor will not enter into any amendments to the Purchase Agreement that would cause a Ratings Event to occur so long as there are Investor Securities outstanding.

Credit and Collection Policy and Contracts. Subject to compliance with all Requirements of Law, the applicable Credit Card Originator and the Servicer shall comply with and perform its obligations under the Contracts relating to the Accounts and the Credit and Collection Policy except insofar as any failure so to comply or perform would not materially and adversely affect the rights of the Trust and the beneficiaries thereof. Subject to compliance with all Requirements of Law, the Servicer or such Credit Card Originator may change the terms and provisions of the Contracts or the Credit and Collection Policy with respect to any of the Accounts in any respect (including the calculation of the amount, or the timing, of charge-offs and the Periodic Finance Charges and other fees to be assessed thereon) only if in the reasonable judgment of the Servicer or such Credit Card Originator, as applicable, (i) at the time of such action, the Servicer or Credit Card Originator reasonably believes that such action will not materially and adversely affect the rights of the Trust or the beneficiaries thereof, and (ii) such change is made applicable to the comparable segment of the revolving credit accounts owned by the Credit Card Originator or serviced by the Servicer which have characteristics the same as, or substantially similar to, the Accounts that are the subject of such change, except as otherwise restricted by an endorsement, sponsorship, or other agreement between HSBC Nevada or an Affiliate of HSBC Nevada (or Credit Card Originator if HSBC Nevada is not the Credit Card Originator) and an unrelated third party or by the terms of the Contracts. The Transferor further In the event any of the representations, warranties or covenants that of the Transferor will not enter into any amendments to Servicer set forth in this Section 3.3 are breached, the Purchase Agreement that would cause a Ratings Event to occur so long as there are Investor Securities outstandingTransferor, the Trustee and the Trust shall have the remedies set forth in Section 8.4.

Credit and Collection Policy and Contracts. Subject to compliance with all Requirements of Law, the The applicable Credit Card Originator and the Servicer shall comply with and perform its obligations under the Contracts relating to the Accounts and the Credit and Collection Policy except insofar as any failure so to comply or perform would not materially and adversely affect the rights of the Trust and the beneficiaries thereof. Subject to compliance with all Requirements of Law, the Servicer or such Credit Card Originator may change the terms and provisions of the Contracts or the Credit and Collection Policy with respect to any of the Accounts in any respect (including the calculation of the amount, or the timing, of charge-offs and the Periodic Finance Charges and other fees to be assessed thereon) only if in the reasonable judgment of the Servicer or such Credit Card Originator, as applicable, Originator (i) at the time (if it owns a comparable segment of such action, the Servicer or Credit Card Originator reasonably believes that such action will not materially and adversely affect the rights of the Trust or the beneficiaries thereof, and (iireceivables) such change is made applicable to the any comparable segment of the consumer revolving credit card accounts owned by the such Credit Card Originator or serviced by the Servicer which have characteristics the same as, or substantially similar to, such Accounts or (ii) (if it does not own such a comparable segment of receivables) such change will not be made with the Accounts that are intent to materially benefit the subject Credit Card Originator over the applicable purchaser of such changethe Receivables, the Buyer, or the Trust and the beneficiaries thereof or to materially adversely affect the applicable purchaser of the Receivables, the Buyer, or the Trust and the beneficiaries thereof, except as otherwise restricted by an endorsement, sponsorship, sponsorship or other agreement between HSBC Nevada or an Affiliate of HSBC Nevada (or such Credit Card Originator if HSBC Nevada is not the Credit Card Originator) and an unrelated third party or by the terms of the Contracts. The Transferor further applicable Credit Card Originator covenants that the Transferor such Credit Card Originator will not enter into any amendments to the Bank Receivables Purchase Agreement (or such similar agreement) that would cause a Ratings Event (as defined in the Pooling and Servicing Agreement) to occur so long as there are Investor Securities outstanding.

Credit and Collection Policy and Contracts. Subject to compliance with all Requirements of Law, the The applicable Credit Card Originator and the Servicer shall comply with and perform its obligations under the Contracts relating to the Accounts and the Credit and Collection Policy except insofar as any failure so to comply or perform would not materially and adversely affect the rights of the Trust and the beneficiaries thereof. Subject to compliance with all Requirements of Law, the Servicer or such Credit Card Originator may change the terms and provisions of the Contracts or the Credit and Collection Policy with respect to any of the Accounts in any respect (including the calculation of the amount, or the timing, of charge-offs and the Periodic Finance Charges and other fees to be assessed thereon) only if in the reasonable judgment of the Servicer or such Credit Card Originator, as applicable, Originator (i) at the time (if it owns a comparable segment of such action, the Servicer or Credit Card Originator reasonably believes that such action will not materially and adversely affect the rights of the Trust or the beneficiaries thereof, and (iireceivables) such change is made applicable to the any comparable segment of the consumer revolving credit card accounts owned by the such Credit Card Originator or serviced by the Servicer which have characteristics the same as, or substantially similar to, such Accounts or (ii) (if it does not own such a comparable segment of receivables) such change will not be made with the Accounts that are intent to materially benefit the subject Credit Card Originator over the applicable purchaser of such changethe Receivables, the Transferor, or the Trust and the beneficiaries thereof, or to materially adversely affect the applicable purchaser of Receivables, the Transferor, or the Trust and the beneficiaries thereof, except as otherwise restricted by an endorsement, sponsorship, or other agreement between HSBC Nevada or an Affiliate of HSBC Nevada (or the Credit Card Originator if HSBC Nevada is not the Credit Card Originator) and an unrelated third party or by the terms of the Contracts. The Transferor further covenants that the Transferor will not enter into any amendments to the Bank Receivables Purchase Agreement or the Purchase Agreement that would cause a Ratings Event to occur so long as there are Investor Securities outstanding.