Current Vehicle Value/Current Net Book Value. With respect to any Defaulted Transaction, Servicer shall first determine the then current market value of the Defaulted Vehicle (the “Current Vehicle Value”), as well as the then current Net Book Value of the Defaulted Transaction (the “Current NBV”). The Current NBV: (A) for Existing Transactions is equal to the present value of the remaining Defaulted Transaction payments and expected residual value of the Defaulted Vehicle, using a discount rate equal to the Discount Rate set forth in the Purchase and Sale Agreement for Existing Transactions, and (B) for Future Transactions is equal to the present value of the remaining Defaulted Transaction payments and expected residual value of the Defaulted Vehicle, using a discount rate that is equal to Purchaser’s initial internal rate of return for the Defaulted Transaction, including any expected residual value;
Current Vehicle Value/Current Net Book Value. With respect to any Defaulted Transaction, Servicer shall first determine the then current market value of the Defaulted Vehicle (the “Current Vehicle Value”), as well as the then Current NBV of the Defaulted Transaction. The “Current NBV” shall mean, at any time: (A) for an Existing Transaction, an amount equal to the present value of the remaining Contract Payments of the applicable Vehicle, using a discount rate equal to the Discount Rate set forth in the Purchase and Sale Agreement for such Transaction, and (B) for a Future Transaction, an amount equal to the present value of the remaining Contract Payments of the applicable Vehicle, using a discount rate that is equal to Element’s initial internal rate of return for such Transaction, including any expected residual value.
