Common use of Optional Purchases or Substitutions of Defaulted Timeshare Loans Clause in Contracts

Optional Purchases or Substitutions of Defaulted Timeshare Loans. The Loan Seller hereby irrevocably grants to BBCV an option to repurchase or substitute Defaulted Timeshare Loans it has under the Sale Agreement as described in the following sentence. With respect to Defaulted Timeshare Loans on any date, BBCV shall have the option, but not the obligation, to either (i) purchase such Defaulted Timeshare Loan at the Repurchase Price for such Defaulted Timeshare Loan or (ii) substitute one (1) or more Qualified Substitute Timeshare Loans for such Defaulted Timeshare Loan and pay the related Substitution Shortfall Amount, if any; provided, however, that BBCV’s option to purchase a Defaulted Timeshare Loan or to substitute one (1) or more Qualified Substitute Timeshare Loans for a Defaulted Timeshare Loan is limited on any date to the Optional Purchase Limit and the Optional Substitution Limit, respectively. BBCV may irrevocably waive its option to purchase or substitute a Defaulted Timeshare Loan by delivering to Quorum a Waiver Letter in the form of Exhibit A attached hereto.