Common use of Optional Substitution Clause in Contracts

Optional Substitution. (a) At any time the Servicer and HAFI shall each have the right, in their respective sole discretion, but not the obligation, to elect (by written notice sent to the Indenture Trustee and the Owner Trustee) to substitute in the place of any Receivable an Eligible Substitute Receivable or Receivables; provided that the aggregate Principal Balance of all Eligible Substitute Receivables substituted pursuant to this Section shall not exceed 2% of the Pool Balance as of the initial Cut-off Date; provided further that prior to any such substitution the Servicer shall give written notice to each Rating Agency of any such substitution.

Optional Substitution. (a) At any time the Master Servicer and HAFI shall each have the right, in their respective sole discretion, but not the obligation, to elect (by written notice sent to the Indenture Trustee and the Owner Trustee) to substitute in the place of any Receivable an Eligible Substitute Receivable or Receivables; provided that the aggregate Principal Balance of all Eligible Substitute Receivables substituted pursuant to this Section shall not exceed 2% of the Pool Balance as of the initial Cut-off Date; provided further that prior to any such substitution the Master Servicer shall give written notice to each Rating Agency of any such substitution.

Optional Substitution. (a) At any time the Master Servicer and HAFI HAFC shall each have the right, in their respective sole discretion, but not the obligation, to elect (by written notice sent to the Indenture Trustee and the Owner Trustee) to substitute in the place of any Receivable an Eligible Substitute Receivable or Receivables; provided that the aggregate Principal Balance of all Eligible Substitute Receivables substituted pursuant to this Section shall not exceed 2% of the Pool Balance as of the initial Cut-off Cutoff Date; provided further that prior to any such substitution the Master Servicer shall give written notice to each Rating Agency of any such substitution.