Common use of Purchase of Secured Notes Upon Breach of Covenant Clause in Contracts

Purchase of Secured Notes Upon Breach of Covenant. Upon discovery by any of the Administrator, the Depositor, the Issuing Entity or the AART Indenture Trustee of a breach of any of the covenants set forth in Sections 2.02 and 2.03 of this Agreement, the party discovering such breach shall give prompt written notice thereof to the others. As of the last day of the second Monthly Period following its discovery or receipt of notice of such breach (or, at the Administrator’s election, the last day of the first Monthly Period following such discovery or receipt of notice), the Administrator shall, unless it shall have cured such breach in all material respects, purchase from the Owner thereof any Secured Note materially and adversely affected by such breach and, on the related Distribution Date, the Administrator shall pay the Administrative Purchase Payment. It is understood and agreed that the obligation of the Administrator to purchase any Secured Note with respect to which such a breach has occurred and is continuing and the obligation of the Administrator to enforce the Seller’s or the Depositor’s obligation to repurchase such Secured Notes pursuant to the Pooling Agreement or the Trust Sale Agreement, respectively, shall, if such obligation is fulfilled, constitute the sole remedy against the Administrator for such breach available to the Depositor or any Interested Party.