Common use of Discount Option Clause in Contracts

Discount Option. The Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount Percentage"), of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider and each Rating Agency of any such exercise of the discount option or increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence cause a Pay Out Event, or an event which with notice or the lapse of time would constitute a Pay Out Event, to occur with respect to any Series and (ii) the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that the Rating Agency Condition is satisfied. On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. The (a) Transferor shall have the option to designate at any time a fixed or floating percentage (the "“Discount Percentage"), ”) of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' ’ prior written notice to the Servicer, the TrusteeIssuer, each Credit Enhancement Provider Indenture Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Indenture Trustee an Officer's ’s Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) in the Transferorcase of any increase, the Servicer and the Trustee Discount Percentage shall have received written confirmation from each Rating Agency not exceed 3% after giving effect to that increase, unless the Rating Agency Condition is satisfied. has been satisfied with respect to the increase. (b) On each Date of Processing after the date on which the Transferor's ’s exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. The Transferor shall have the option --------------- to designate at any time a fixed or floating percentage (the "Discount Percentage"), of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider and each Rating Agency of any such exercise of the discount option or increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence cause a Pay Out Event, or an event which with notice or the lapse of time would constitute a Pay Out Event, to occur with respect to any Series and (ii) the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that the Rating Agency Condition is satisfied. . (a) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.. [End of Article II]

Discount Option. The (a) Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount PercentageDISCOUNT PERCENTAGE"), ) of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) in the Transferorcase of any increase, the Servicer and the Trustee Discount Percentage shall have received written confirmation from each Rating Agency not exceed 3% after giving effect to that increase, unless the Rating Agency Condition is satisfied. has been satisfied with respect to the increase. (b) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. The For each Retailer, the Transferor shall have the option (subject to the limitations described below) to designate at any time a fixed or floating percentage (the "“Discount Percentage"), ”) of the amount of all Principal Receivables arising existing in all the Accounts on or after the date related to such designation becomes effective that would otherwise constitute Principal Receivables Retailer (prior to subtracting from Principal Receivables, Finance Charge Receivables that are “Discount Option Receivables) to be treated as Finance Charge Receivables”). The Transferor may from time to time increase increase, reduce or eliminate (subject to the limitations described below), reduce or eliminate ) the Discount Percentage for related to such Retailer. All Discount Option Receivables arising in the Accounts on and after the date Collections for any Date of such changeProcessing shall be treated as Finance Charge Collections. The Transferor must shall provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider Buyer and each Rating Agency of any initial designation, increase, reduction or elimination, and such exercise of the discount option or initial designation, increase, reduction or elimination shall become effective as of the Discount Percentage, and such exercise first day of the discount option or Monthly Period preceding the Monthly Period in which the Transferor delivers notice of such initial designation, increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee Buyer an Officer's ’s Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such initial designation, increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out Eventan Adverse Effect (as defined in the Indenture), or an event which with notice or the lapse of time would constitute a Pay Out Event, to occur with respect to any Series and (ii) in the Transferorcase any initial designation or increase, the Servicer and the Trustee Discount Percentage for such Retailer shall have received written confirmation from each Rating Agency not exceed 5% after giving effect to that initial designation or increase, unless the Rating Agency Condition has been satisfied with respect to the increase, (iii) Buyer consents to such designation, increase, reduction or elimination and (iv) Transferor has provided written notice to Servicer, Buyer and each Rating Agency of such initial designation, increase, reduction or elimination no later than ten (10) Business Days prior to the Payment Date related to such Monthly Period; provided, that if the Transferor provides notice to Servicer, Buyer and each Rating Agency less than ten (10) Business Days prior to the Payment Date related to the prior Monthly Period, the Discount Percentage shall become effective as of the first day of the Monthly Period in which such notice is satisfiedprovided. On each Date If as a result of such designation, increase, reduction or elimination, the amount of Collections for any prior Dates of Processing after during the date on which Monthly Period would be greater than the Transferor's exercise amount of its discount option takes effectCollections as previously calculated, the Transferor Buyer shall treat Discount Option Receivables make a deposit to the Collection Account within two Business Days following the delivery of notice of such designation, increase, reduction or elimination; provided that if the Issuer is permitted to make monthly deposits of Collections as Collections pursuant to Section 8.4 of Finance Charge Receivablesthe Indenture, no such deposit need be made until the following Payment Date.

Discount Option. The Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount Percentage"), of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider and each Rating Agency of any such exercise of the discount option or increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence cause a Pay Out Event, or an event which with notice or the lapse of time would constitute a Pay Out Event, to occur with respect to any Series and (ii) the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that the Rating Agency Condition is satisfied. On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.. [End of Article II]

Discount Option. The (a) Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount Percentage"), ) of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) in the Transferorcase of any increase, the Servicer and the Trustee Discount Percentage shall have received written confirmation from each Rating Agency not exceed 3% after giving effect to that increase, unless the Rating Agency Condition is satisfied. has been satisfied with respect to the increase. (b) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. (a) The Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount Percentage"), of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) the Discount Percentage shall not be greater than 3% at any time, unless the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that the Rating Agency Condition is satisfied. . (b) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. The (a) Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount PercentageDISCOUNT PERCENTAGE"), ) of the amount of 40 Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) in the Transferorcase of any increase, the Servicer and the Trustee Discount Percentage shall have received written confirmation from each Rating Agency not exceed 3% after giving effect to that increase, unless the Rating Agency Condition is satisfied. has been satisfied with respect to the increase. (b) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. (a) The Transferor shall have the option to designate at any time and from time to time a percentage or percentages, which may be a fixed percentage or floating a variable percentage based on a formula (the "Discount PercentageDISCOUNT PERCENTAGE"), of the amount all or any specified portion of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Collections of Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Collections of Finance Charge ReceivablesReceivables ("DISCOUNT OPTION COLLECTIONS"). The Subject to the conditions specified below, the Transferor may may, without notice to or the consent of any Noteholder, from time to time increase (subject to the limitations described below)time, increase, reduce or eliminate the Discount Percentage for Discount Option all or any specified portion of Collections of Principal Receivables arising in the Accounts on and or after the a specified date of such change(each, a "DISCOUNT OPTION DATE"). The Transferor must shall provide 30 days' thirty (30) days prior written notice of any such change in the Discount Percentage and the related Discount Option Date to the Servicer, the Owner Trustee, each Credit Enhancement Provider the Indenture Trustee and each any Rating Agency of any such exercise of the discount option or increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of change in the Discount Percentage shall become effective on the date specified therein only if such Discount Option Date (i) unless such designation in the reasonable belief of the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence would cause a Pay Out EventEvent or Event of Default with respect to any Series to occur, or an event which which, with notice or the lapse of time or both, would constitute a Pay Out Event, to occur Event or Event of Default with respect to any Series and (ii) the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that only if the Rating Agency Condition is satisfied. shall have been satisfied with respect to such designation. (b) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effectProcessing, the Transferor shall treat Discount Option Receivables Collections Collections, if any, shall be treated as Collections of Finance Charge Receivables.. [END OF ARTICLE II]

Discount Option. The (a) Any Discount Percentages designated and in effect under the Trust Receivables Purchase Agreement prior to the RFS Funding Trust Termination Date shall be deemed to have been designated and in effect pursuant to this Agreement. After the RFS Funding Trust Termination Date, for each Retailer, Transferor shall have the option (subject to the limitations described below) to designate at any time a fixed or floating percentage (the "“Discount Percentage"), ”) of the amount of all Transferred Receivables arising in the all Accounts related to such Retailer on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase increase, reduce or eliminate (subject to the limitations described below), reduce or eliminate ) the Discount Percentage related to such Retailer for Discount Option Receivables arising in the Accounts an Account on and after the date of such change. The Transferor must shall provide 30 days' ’ prior written notice to the Servicer, the TrusteeBuyer, each Credit Enhancement Provider and each Rating Agency of any initial designation, increase, reduction or elimination, and such exercise of the discount option or initial designation, increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee Buyer an Officer's ’s Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such initial designation, increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and series of Notes, (ii) in the Transferorcase of any initial designation or increase, the Servicer and the Trustee Discount Percentage for such Retailer shall have received written confirmation from each Rating Agency not exceed 5% after giving effect to that initial designation or increase, unless the Rating Agency Condition has been satisfied with respect to the increase , (iii) in the case of any reduction, the Rating Agency Condition has been satisfied and (iv) Buyer consents to such designation, increase, reduction or elimination. (b) The portion of the Principal Receivables arising in Accounts relating to any Retailer as to which a Discount Percentage is satisfiedin effect that shall be recharacterized as Finance Charge Receivables shall equal the product of (x) an amount equal to the aggregate Outstanding Balance of such Principal Receivables (before giving effect to the recharacterization) and (y) a fraction the numerator of which is the Discount Option Receivables relating to the Retailer and the denominator of which is the aggregate Outstanding Balance of all Principal Receivables for such Retailer (before giving effect to the recharacterization). On The fraction referred to in the preceding clause (y) shall be determined not later than the 10th day of each calendar month (or, if such 10th day is not a Business Day, on the next Business Day) using the numerator and denominator as of the end of the most recent Monthly Period, and that fraction shall be used until recalculated in the next month. For this purpose, “Discount Option Receivables” means, as to any Retailer, on any Date of Processing on and after the date on which the Transferor's ’s exercise of its discount option for such Retailer takes effect, the Transferor sum of (i) the aggregate amount of Discount Option Receivables relating to such Retailer at the end of the prior day (which amount, prior to the date on which Transferor’s exercise of its discount option for such Retailer takes effect and with respect to Principal Receivables generated in such Retailer’s program prior to such date, shall treat be zero), plus (ii) the product of (A) the Discount Percentage for such Retailer and (B) the amount of Principal Receivables (before giving effect to the recharacterization referred to above) created on such day in such Retailer’s program, minus (iii) any Discount Option Receivables Collections (as Collections defined below) received on such Date of Finance Charge ReceivablesProcessing.

Discount Option. The (a) Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount PercentageDISCOUNT PERCENTAGE"), ) of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the TrusteeIssuer, each Credit Enhancement Provider Indenture Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Indenture Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall will not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) in the Transferorcase of any increase, the Servicer and the Trustee Discount Percentage shall have received written confirmation from each Rating Agency not exceed 3% after giving effect to that increase, unless the Rating Agency Condition is satisfied. has been satisfied with respect to the increase. (b) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.

Discount Option. The Transferor shall have the option to designate at any time a fixed or floating percentage (the "Discount Percentage"), of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider and each Rating Agency of any such exercise of the discount option or increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence cause a Pay Out Event, or an event which with notice or the lapse of time would constitute a Pay Out Event, to occur with respect to any Series and (ii) the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that the Rating Agency Condition is satisfied. . (a) On each Date of Processing after the date on which the Transferor's exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.. [End of Article II]

Discount Option. (a) The Transferor shall have the option to designate at any time a fixed or floating percentage (the "“Discount Percentage"”), of the amount of Receivables arising in the Accounts on or after the date such designation becomes effective that would otherwise constitute Principal Receivables (prior to subtracting from Principal Receivables, Finance Charge Receivables that are Discount Option Receivables) to be treated as Finance Charge Receivables. The Transferor may from time to time increase (subject to the limitations described below), reduce or eliminate the Discount Percentage for Discount Option Receivables arising in the Accounts on and after the date of such change. The Transferor must provide 30 days' ’ prior written notice to the Servicer, the Trustee, each Credit Enhancement Provider Trustee and each Rating Agency of any such exercise of the discount option increase, reduction or elimination, and such increase, reduction or elimination of the Discount Percentage, and such exercise of the discount option or increase, reduction or elimination of the Discount Percentage shall become effective on the date specified therein only if (i) the Transferor has delivered to the Trustee an Officer's ’s Certificate to the effect that, based on the facts known to such officer at the time, the Transferor reasonably believes that such increase, reduction or elimination shall not at the time of its occurrence cause a Pay Out an Early Amortization Event, or an event which with notice or the lapse of time would constitute a Pay Out an Early Amortization Event, to occur with respect to any Series and (ii) the Discount Percentage shall not be greater than 3% at any time, unless the Transferor, the Servicer and the Trustee shall have received written confirmation from each Rating Agency that the Rating Agency Condition is satisfied. . (b) On each Date of Processing after the date on which the Transferor's ’s exercise of its discount option takes effect, the Transferor shall treat Discount Option Receivables Collections as Collections of Finance Charge Receivables.