Common use of Credit Risk Retention Clause in Contracts

Credit Risk Retention. World Omni shall comply in all material respects with all requirements imposed on the “sponsor” of the “securitization transaction” (as each such term is defined in the Credit Risk Retention Rules) described in the Basic Documents in accordance with the Credit Risk Retention Rules, including its requirements to (i) retain, either directly or through a “majority-owned affiliate” (as such term is defined in the Credit Risk Retention Rules) of World Omni, the “eligible horizontal residual interest” (as such term is defined in the Credit Risk Retention Rules) in such securitization transaction in accordance with the Credit Risk Retention Rules and shall not, and shall cause its affiliates to not, sell, transfer, finance, pledge or hedge such interest except as permitted under the Credit Risk Retention Rules, (ii) cause to be established and funded, in cash, the Reserve Account, as an “eligible horizontal cash reserve account” (as such term is defined in the Credit Risk Retention Rules) and (iii) satisfy the disclosure requirements set forth in the Credit Risk Retention Rules without any involvement from the underwriters.