Common use of Payment and Reimbursement of Liquidation Expenses Clause in Contracts

Payment and Reimbursement of Liquidation Expenses. (a) In connection with the repossession or sale of any Leased Vehicle, the Servicer shall be entitled, if such Leased Vehicle shall have sustained any damage, to expend funds in connection with any repair or towards the repossession of such Leased Vehicle if it has determined in its discretion that such repair and/or repossession shall increase the proceeds of liquidation of the Leased Vehicle and related Lease by an amount greater than the amount of such expenses. (b) The Servicer shall be entitled to be reimbursed for the amount of any Liquidation Expenses it has paid with respect to each Lease Asset at such time as the related Leased Vehicle has been sold or otherwise disposed of by the Servicer in accordance with Section 3.03(b)(iii)(B).