Common use of Maintenance of Security Interests in Financed Equipment Clause in Contracts

Maintenance of Security Interests in Financed Equipment. The Servicer shall take such steps, in accordance with the standard of care required under Section 3.01, as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Equipment and any other collateral pledged to secure the Receivable. The Issuer hereby authorizes the Servicer, and the Servicer hereby agrees, to take such steps as are necessary to re-perfect such security interest on behalf of the Issuer and the Indenture Trustee in the event the Servicer receives notice of, or otherwise has actual knowledge of, the fact that such security interest is not perfected as a result of the relocation of Financed Equipment or for any other reason. In the event that the assignment of a Receivable to the Issuer is insufficient, without a notation on the related Financed Equipment’s certificate of title (if applicable), to grant to the Issuer a first priority perfected security interest in the related Financed Equipment, the Servicer hereby agrees to serve as the agent of the Issuer for the purpose of perfecting the security interest of the Issuer in such Financed Equipment and agrees that the Servicer’s listing as the secured party on the certificate of title is solely in its capacity as agent of the Issuer. The Servicer shall not release, in whole or in part, any security interest in Financed Equipment created by the related Receivable except as permitted herein or in accordance with its customary standards, policies, practices and procedures.