Common use of Deemed Collections; Application of Payments Clause in Contracts

Deemed Collections; Application of Payments. (a) If, on any day, any representation or warranty made herein with respect to any Transferred Receivable is determined to be incorrect or untrue in any respect as of the date such representation or warranty was made, the Transferor shall be deemed to have received on such day a Collection of such Receivable in full and the Transferor shall, on such day, pay to the Collection Agent an amount equal to the Outstanding Balance of such Receivable and such amount shall be allocated and applied by the Collection Agent as a Collection allocable to the Transferred Interest in accordance with Section 2.5 and 2.6 ----------- --- hereof, as applicable. The Net Investment shall be reduced by the amount of such payment actually received by the Deal Agent. Upon receipt by the Deal Agent of such payment by the Transferor, each of VFCC and the Committed Investors, as the case may be, shall convey all of its right, title and interest in such Receivable, the Related Security and all Collections and Proceeds related thereto not previously paid to the Investors to the Transferor. (b) Any payment by an Obligor in respect of a Transferred Receivable shall, except as otherwise specified by such Obligor or otherwise required by Credit Card Agreement or law and unless otherwise instructed by VFCC, be applied as a Collection of any Receivable of such Obligor included in the Transferred Interest (starting with the oldest such Receivable) to the extent of any amounts then due and payable thereunder before being applied to any other receivable or other indebtedness of such Obligor.

Deemed Collections; Application of Payments. (a) If, on any day, any representation or warranty made herein with respect to any Transferred Receivable is determined to be incorrect or untrue in any respect as of the date such representation or warranty was made, the Transferor shall be deemed to have received on such day a Collection of such Receivable in full and the Transferor shall, on such day, pay to the Collection Agent an amount equal to the Outstanding Balance of such Receivable and such amount shall be allocated and applied by the Collection Agent as a Collection allocable to the Transferred Interest in accordance with Section 2.5 and 2.6 ----------- --- hereof, as applicable. The Net Investment shall be reduced by the amount of such payment actually received by the Deal Agent. Upon receipt by the Deal Agent of such payment by the Transferor, each of VFCC and the Committed Investors, as the case may be, shall convey all of its right, title and interest in such Receivable, the Related Security and all Collections and Proceeds related thereto not previously paid to the Investors to the Transferor. (b) Any payment by an Obligor in respect of a Transferred Receivable shall, except as otherwise specified by such Obligor or otherwise required by Credit Card Agreement or law and unless otherwise instructed by VFCC, be applied as a Collection of any Receivable of such Obligor included in the Transferred Interest (starting with the oldest such Receivable) to the extent of any amounts then due and payable thereunder before being applied to any other receivable or other indebtedness of such Obligor.