Common use of Purchase of Ineligible Receivables Clause in Contracts

Purchase of Ineligible Receivables. If at any time a Receivable Repurchase Event shall have occurred and be continuing, Discover Bank on behalf of the Holder of the Seller Certificate shall purchase all the Receivables in each Account in which there is any Receivable as to which such event relates (an “Ineligible Receivable”), subject to the provisions of Section 2.08, on the terms and conditions set forth below. Discover Bank on behalf of the Holder of the Seller Certificate shall purchase all the Receivables in each Account with an Ineligible Receivable on the Trust Distribution Date related to the then current Due Period by directing the Master Servicer to deduct the amount of such Receivables which are Principal Receivables from the aggregate amount of Principal Receivables in the Trust. On and after the date of such repurchase, Receivables so purchased shall not be included in the calculation of any Series Percentage, the Seller Percentage or the Seller Interest. In the event that such an exclusion of Receivables from the calculation of the Seller Interest would cause such Seller Interest to be a negative number on the date of purchase of such Receivables, Discover Bank on behalf of the Holder of the Seller Certificate shall make a deposit in the Collections Account in immediately available funds in an amount equal to the amount by which the Seller Interest would be reduced below zero. Such deposit shall be considered a payment in full of such Receivables and shall be applied as Collections in respect of such Receivables in accordance with Section 4.03. Upon each such purchase of Receivables by Discover Bank on behalf of the Holder of the Seller Certificate, the Trust shall automatically and without further action be deemed to sell, transfer, assign and otherwise convey to Discover Bank on behalf of the Holder of the Seller Certificate without recourse, representation or warranty (except for the warranty that since the date of transfer by any Seller under this Agreement the Trustee has not sold, transferred or encumbered any such Receivable or interest therein), all the right, title and interest of the Trust in and to such Receivables, all monies due or to become due with respect thereto, all proceeds thereof and all Receivables thereafter created in such Account. The Trustee shall execute such documents and instruments of transfer or assignment including, without limitation, any document necessary to release the Trust’s security interest in such Receivables and to release any filings evidencing or perfecting such security interest and take such other actions as shall reasonably be requested by Discover Bank on behalf of the Holder of the Seller Certificate to effect the conveyance of such Receivables pursuant to this section. The obligation of Discover Bank on behalf of the Holder of the Seller Certificate to purchase any Ineligible Receivables, and to make the deposits, if any, required to be made to the Collections Account as provided in this Section 2.07(b), shall constitute the sole remedy respecting the event giving rise to such obligation available to the Certificateholders (or the Trustee on behalf of the Certificateholders).

Purchase of Ineligible Receivables. (a) If at any time a Receivable Repurchase Event shall have occurred the representation and be continuing, Discover Bank on behalf warranty of the Holder initial Servicer contained in Section 2.10(d) was not true and correct with respect to any Contract and related Receivable (other than a 2017-PV1 Ineligible Receivable) as of the Seller Certificate shall purchase all the Receivables in each Account in which there is applicable Cut-Off Date (any Receivable as to which such event relates (Receivable, an “Ineligible Receivable”), subject to the provisions of Section 2.08initial Servicer shall, on at the terms and conditions set forth below. Discover Bank on behalf request of the Holder of the Seller Certificate shall Administrative Agent, purchase all such Ineligible Receivable within ten (10) Business Days after demand thereof from the Receivables in each Account with an Ineligible Receivable on the Trust Distribution Date related to the then current Due Period by directing the Master Servicer to deduct the amount of such Receivables which are Principal Receivables from the aggregate amount of Principal Receivables in the Trust. On and after the date of such repurchase, Receivables so purchased shall not be included in the calculation of any Series Percentage, the Seller Percentage or the Seller Interest. In the event that such an exclusion of Receivables from the calculation of the Seller Interest would cause such Seller Interest to be a negative number on the date of purchase of such Receivables, Discover Bank on behalf of the Holder of the Seller Certificate shall make a deposit in the Collections Account in immediately available funds in for an amount equal to the Receivables Principal Balance of such Receivable plus accrued and unpaid interest thereon at the time of such purchase (such amount, the “Repurchase Price”), and such amount by which the Seller Interest would be reduced below zero. Such deposit shall be considered remitted by the initial Servicer to the Collection Account and be treated by the initial Servicer as a payment in full Collection on such Receivable for purposes of the Transaction Documents; provided, if during such ten (10) Business Day period the Servicer takes all necessary actions such that the Receivable is no longer an Ineligible Receivable and reimburses the Receivables Trust for all lost Collections resulting from the failure of such representation and warranty to be true, then the initial Servicer shall not be required to purchase such Receivable. (b) The initial Servicer and the Receivables and shall be applied as Collections in respect of such Receivables in accordance with Section 4.03. Upon each such purchase of Receivables by Discover Bank on behalf Trust agree that after payment of the Holder Repurchase Price for an Ineligible Receivable as provided in clause (a) above, such Ineligible Receivable shall no longer constitute a Receivable for purposes of the Seller CertificateTransaction Documents. (c) Except as expressly set forth in the Transaction Documents, the initial Servicer shall not have any right under this Agreement, by implication or otherwise, to purchase from the Receivables Trust shall automatically and without further action be deemed to sell, transfer, assign and otherwise convey to Discover Bank on behalf any Receivables. (d) The obligation of the Holder of the Seller Certificate without recourse, representation or warranty (except for the warranty that since the date of transfer by any Seller under this Agreement the Trustee has not sold, transferred or encumbered any such initial Servicer to purchase an Ineligible Receivable or interest therein), all the right, title and interest of the Trust in and to such Receivables, all monies due or to become due with respect thereto, all proceeds thereof and all Receivables thereafter created in such Account. The Trustee shall execute such documents and instruments of transfer or assignment including, without limitation, any document necessary to release the Trust’s security interest in such Receivables and to release any filings evidencing or perfecting such security interest and take such other actions as shall reasonably be requested by Discover Bank on behalf of the Holder of the Seller Certificate to effect the conveyance of such Receivables pursuant to this section. The obligation Section 2.03 will survive the termination of Discover Bank on behalf this Agreement or the earlier resignation or removal of the Holder of the Seller Certificate to purchase any Ineligible Receivables, and to make the deposits, if any, required to be made to the Collections Account as provided in this Section 2.07(b), shall constitute the sole remedy respecting the event giving rise to such obligation available to the Certificateholders (or the Trustee on behalf of the Certificateholders)initial Servicer.

Purchase of Ineligible Receivables. If at any time a Receivable Repurchase Event shall have occurred and be continuing, Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate shall purchase all the Receivables in each Account in which there is any Receivable as to which such event relates (an “Ineligible Receivable”), subject to the provisions of Section 2.08, on the terms and conditions set forth below. Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate shall purchase all the Receivables in each Account with an Ineligible Receivable on the Trust Distribution Date related to the then current Due Period by directing the Master Servicer to deduct the amount of such Receivables which are Principal Receivables from the aggregate amount of Principal Receivables in the Trust. On and after the date of such repurchase, Receivables so purchased shall not be included in the calculation of any Series Percentage, the Seller Transferor Percentage or the Seller Transferor Interest. In the event that such an exclusion of Receivables from the calculation of the Seller Transferor Interest would cause such Seller the Transferor Interest to be a negative number on the date of purchase of such Receivables, Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate shall make a deposit in the Collections Account in immediately available funds in an amount equal to the amount by which the Seller Transferor Interest would be reduced below zero. Such deposit shall be considered a payment in full of such Receivables and shall be applied as Collections in respect of such Receivables in accordance with Section 4.03. Upon each such purchase of Receivables by Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate, the Trust shall automatically and without further action be deemed to sell, transfer, assign and otherwise convey to Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate without recourse, representation or warranty (except for the warranty that since the date of transfer by any Seller the Transferor under this Agreement the Trustee has not sold, transferred or encumbered any such Receivable or interest therein), all the right, title and interest of the Trust in and to such Receivables, all monies due or to become due with respect thereto, all proceeds thereof and all Receivables thereafter created in such Account. The Trustee shall execute such documents and instruments of transfer or assignment including, without limitation, any document necessary to release the Trust’s security interest in such Receivables and to release any filings evidencing or perfecting such security interest and take such other actions as shall reasonably be requested by Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate to effect the conveyance of such Receivables pursuant to this section. The obligation of Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate to purchase any Ineligible Receivables, and to make the deposits, if any, required to be made to the Collections Account as provided in this Section 2.07(b), shall constitute the sole remedy respecting the event giving rise to such obligation available to the Certificateholders (or the Trustee on behalf of the Certificateholders).

Purchase of Ineligible Receivables. If at any time a Receivable Repurchase Event shall have occurred and be continuing, Discover Bank on behalf of the Holder of the Seller Certificate Sears shall purchase all the Receivables in each Account in which there is any Receivable as to which such event relates (an “"Ineligible Receivable”), subject to the provisions of Section 2.08, ") on the terms and conditions set forth below; provided, however, that Sears shall not purchase any Receivables that have been transferred to a Trust unless a Receivables Repurchase Event (as defined in the applicable Pooling and Servicing Agreement) shall have occurred with respect to such Trust. Discover Bank on behalf of the Holder of the Seller Certificate Sears shall purchase all the Receivables in each Account with an Ineligible Receivable on the Trust Distribution Date related to the then current Due Period by directing paying SRFG the Master Servicer to deduct the face amount of such Receivables which are Principal Receivables from the aggregate amount of Principal Receivables in the Trust. On and after the date of such repurchase, Receivables so purchased shall not be included in the calculation of any Series Percentage, the Seller Percentage or the Seller Interest. In the event that such an exclusion of Receivables from the calculation of the Seller Interest would cause such Seller Interest to be a negative number on the date of purchase of such Ineligible Receivables, Discover Bank on behalf of the Holder of the Seller Certificate shall make a deposit in the Collections Account in immediately available funds in an amount equal to the amount by which the Seller Interest would be reduced below zero. Such deposit payment shall be considered a payment repayment in full of such Receivables and shall be applied as Collections in respect of such Receivables in accordance with Section 4.03Receivables. Upon each such purchase by Sears of Receivables by Discover Bank on behalf of the Holder of the Seller CertificateReceivables, the Trust SRFG shall automatically and without further action be deemed to sell, transfer, assign and otherwise convey to Discover Bank on behalf of the Holder of the Seller Certificate Sears, without recourse, representation or warranty (except for the warranty that since the date of transfer by any Seller Sears under this Agreement the Trustee SRFG has not sold, transferred or encumbered any such Receivable or interest thereintherein other than pursuant to any applicable Pooling and Servicing Agreement), all the right, title and interest of the Trust SRFG in and to such Receivables, all monies due or to become due with respect thereto, all proceeds thereof and all Receivables thereafter created in such Account. The Trustee SRFG shall execute such documents and instruments of transfer or assignment assignment, including, without limitation, any document necessary to release the Trust’s security SRFG's interest in such Receivables and to release any filings evidencing filing evidencing, perfecting or perfecting continuing such security interest and take such other actions as shall reasonably be requested by Discover Bank on behalf of the Holder of the Seller Certificate Sears to effect the conveyance of such Receivables pursuant to this sectionsubsection. The obligation of Discover Bank on behalf of the Holder of the Seller Certificate Sears to purchase any Ineligible Receivables, and to make the deposits, if any, required to be made to the Collections Account as provided in this Section 2.07(b), Receivables shall constitute the sole remedy respecting the event giving rise to such obligation available to the Certificateholders (or the Trustee on behalf of the Certificateholders)SRFG for a Receivable Repurchase Event.

Purchase of Ineligible Receivables. If at any time a Receivable Repurchase Event shall have occurred and be continuing, Discover Bank on behalf of the Holder of the Seller Certificate shall purchase all the Receivables in each Account in which there is any Receivable as to which such event relates (an “Ineligible Receivable”), subject to the provisions of Section 2.08, on the terms and conditions set forth below. Discover Bank on behalf of the Holder of the Seller Certificate shall purchase all the Receivables in each Account with an Ineligible Receivable on the Trust Distribution Date related to the then current Due Period by directing the Master Servicer to deduct the amount of such Receivables which are Principal Receivables from the aggregate amount of Principal Receivables in the Trust. On and after the date of such repurchase, Receivables so purchased shall not be included in the calculation of any Series Percentage, the Seller Percentage or the Seller Interest. In the event that such an exclusion of Receivables from the calculation of the Seller Interest would cause such Seller Interest to be a negative number on the date of purchase of such Receivables, Discover Bank on behalf of the Holder of the Seller Certificate shall make a deposit in the Collections Account in immediately available funds in an amount equal to the amount by which the Seller Interest would be reduced below zero. Such deposit shall be considered a payment in full of such Receivables and shall be applied as Collections in respect of such Receivables in accordance with Section 4.03. Upon each such purchase of Receivables by Discover Bank on behalf of the Holder of the Seller Certificate, the Trust shall automatically and without further action be deemed to sell, transfer, assign and otherwise convey to Discover Bank on behalf of the Holder of the Seller Certificate without recourse, representation or warranty (except for the warranty that since the date of transfer by any Seller under this Agreement the Trustee has not sold, transferred or encumbered any such Receivable or interest therein), all the right, title and interest of the Trust in and to such Receivables, all monies due or to become due with respect thereto, all proceeds thereof and all Receivables thereafter created in such Account. The Trustee shall execute such documents and instruments of transfer or assignment including, without limitation, any document necessary to release the Trust’s security interest in such Receivables and to release any filings evidencing or perfecting such security interest and take such other actions as shall reasonably be requested by Discover Bank on behalf of the Holder of the Seller Certificate to effect the conveyance of such Receivables pursuant to this section. The obligation of Discover Bank on behalf of the Holder of the Seller Certificate to purchase any Ineligible Receivables, and to make the deposits, if any, required to be made to the Collections Account as provided in this Section 2.07(b), shall constitute the sole remedy respecting the event giving rise to such obligation available to the Certificateholders (or the Trustee on behalf of the Certificateholders).to

Purchase of Ineligible Receivables. If at any time a Receivable Repurchase Event shall have occurred and be continuing, Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate shall purchase all the Receivables in each Account in which there is any Receivable as to which such event relates (an “Ineligible Receivable”), subject to the provisions of Section 2.08, on the terms and conditions set forth below. Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate shall purchase all the Receivables in each Account with an Ineligible Receivable on the Trust Distribution Date related to the then current Due Period by directing the Master Servicer to deduct the amount of such Receivables which are Principal Receivables from the aggregate amount of Principal Receivables in the Trust. On and after the date of such repurchase, Receivables so purchased shall not be included in the calculation of any Series Percentage, the Seller Transferor Percentage or the Seller Transferor Interest. In the event that such an exclusion of Receivables from the calculation of the Seller Transferor Interest would cause such Seller the Transferor Interest to be a negative number on the date of purchase of such Receivables, Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate shall make a deposit in the Collections Account in immediately available funds in an amount equal to the amount by which the Seller Transferor Interest would be reduced below zero. Such deposit shall be considered a payment in full of such Receivables and shall be applied as Collections in respect of such Receivables in accordance with Section 4.03. Upon each such purchase of Receivables by Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate, the Trust shall automatically and without further action be deemed to sell, transfer, assign and otherwise convey to Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate without recourse, representation or warranty (except for the warranty that since the date of transfer by any Seller the Transferor under this Agreement the Trustee has not sold, transferred or encumbered any such Receivable or interest therein), all the right, title and interest of the Trust in and to such Receivables, all monies due or to become due with respect thereto, all proceeds thereof and all Receivables thereafter created in such Account. The Trustee shall execute such documents and instruments of transfer or assignment including, without limitation, any document necessary to release the Trust’s security interest in such Receivables and to release any filings evidencing or perfecting such security interest and take such other actions as shall reasonably be requested by Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate to effect the conveyance of such Receivables pursuant to this section. The obligation of Discover Bank on behalf of Funding as the Holder of the Seller Transferor Certificate to purchase any Ineligible Receivables, and to make the deposits, if any, required to be made to the Collections Account as provided in this Section 2.07(b), shall constitute the sole remedy respecting the event giving rise to such obligation available to the Certificateholders (or the Trustee on behalf of the Certificateholders).. that: