Realization Upon Contracts Clause Samples
The 'Realization Upon Contracts' clause defines how and when revenue or benefits from a contract are recognized or considered earned. Typically, this clause outlines the specific conditions or milestones—such as delivery of goods, completion of services, or receipt of payment—that must be met before a party can record income or claim contractual rights. By establishing clear criteria for realization, the clause ensures both parties have a mutual understanding of when obligations are fulfilled and helps prevent disputes over timing or entitlement to contract proceeds.
Realization Upon Contracts. The Servicer shall use its best efforts, consistent with the servicing standard specified in Section 3.01, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which no satisfactory arrangements can be made for collection of delinquent payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Financed Vehicle at public or private sale. In connection with such repossession or other conversion, the Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual for prudent holders of retail installment sales contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Vehicle or any contract in default, may commence and prosecute any proceedings in respect of such Contract in its own name or, if the Servicer deems it necessary, in the name of the Issuer or the Indenture Trustee or on behalf of the Issuer or the Indenture Trustee. The Servicer's obligations under this Section are subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, the Servicer shall not be required to expend its own funds in repairing such motor vehicle unless it shall determine (i) that such restoration will increase the proceeds of liquidation of the related Contract, after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable insurance policy or under an insurance reserve established by the Servicer. The Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a Defaulted Contract; provided, however, that it shall be entitled to reimbursement of such costs and expenses to the extent they constitute Liquidation Expenses or expenses recoverable under an applicable insurance policy. All Net Liquidation Proceeds and Net Insurance Proceeds shall be deposited directly in or credited to the Collection Account (without deposit in any intervening account) to the extent required by Section 4.02.
Realization Upon Contracts. On behalf of the Trust and the Indenture Trustee, the Servicer shall use reasonable efforts, in material accordance with the Collection Guidelines and prudent servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the Servicer shall have determined eventual payment in full is unlikely, as soon as practicable after the Servicer makes such determination. The Servicer may also sell or otherwise assign defaulted contracts for collection in an effort to realize upon such defaulted contracts. The Servicer shall follow such prudent practices and procedures as would be deemed prudent in the servicing of comparable receivables, consistent with the standard of care required by Section 4.01(b) which may include reasonable efforts to sell the Financed Vehicle at public or private sale. If the Backup Servicer has become the Servicer, it shall be entitled to receive Repossession Expenses in accordance with Section 5.02 hereof.
Realization Upon Contracts. 46 SECTION 3.04. INSURANCE.............................................................46 SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES................46 SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.................47 SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.........................49 SECTION 3.08. SERVICING COMPENSATION................................................49 SECTION 3.09. REPORTING BY THE SERVICER.............................................50 SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE.....................................53 SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT...............53 SECTION 3.12.
Realization Upon Contracts. 47 SECTION 3.04 Insurance............................................................................... 47 SECTION 3.05 Maintenance of Security Interests in Financed Vehicles.................................. 47 SECTION 3.06 Covenants, Representations and Warranties of Servicer................................... 48 SECTION 3.07 Purchase of Contracts Upon Breach By Servicer........................................... 50 SECTION 3.08
Realization Upon Contracts. On behalf of the Issuer [and the Insurer], the Servicer shall use reasonable efforts, consistent with prudent servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the Servicer shall have determined eventual payment in full is unlikely. The Servicer shall follow such prudent practices and procedures as would be deemed prudent in the servicing of comparable receivables, which may include reasonable efforts to realize upon any Dealer Recourse and selling the Financed Vehicle at public or private sale. The foregoing shall be subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with the repair or the repossession of such Financed Vehicle unless it shall determine that there is a reasonable likelihood that such repair and/or repossession will increase the Liquidation Proceeds by an amount greater than the amount of such expenses. The Servicer agrees that within 45 days from the Closing Date or the related Funding Date, as applicable, it shall make such filings and effect such notices as are necessary under Section 9-324(b) and 9-324 (c) of the New York UCC (or comparable section of the UCC of any applicable state) to preserve the Issuer’s interest (or security interest, as the case may be) in any repossessed Financed Vehicles delivered for sale to Dealers.
Realization Upon Contracts. (a) The Servicer will, consistent with customary servicing practices and procedures and the terms of this Agreement, act with respect to the Contracts in such manner as it reasonably believes will maximize the receipt of principal and interest on the Contracts and Net Liquidation Proceeds in respect of defaulted Contracts. In the event that title to any Financed Boat is acquired in foreclosure or by conveyance in lieu of foreclosure, the deed or certificate of sale shall be issued to the Trust, or, at its election, to its nominee on behalf of the Trust.
(b) The Servicer shall be entitled to recover all Liquidation Expenses relating to a defaulted Contract, from the liquidation proceeds with respect to such Contract or related Financed Boat. The Net Liquidation Proceeds realized in connection with any such action with respect to a Contract shall be deposited by the Servicer in the Collection Account in the manner specified in Section 5.02 hereof and shall be applied to reduce (or to satisfy, as the case may be) the Purchase Price of the Contract, if such Contract is to be purchased by (i) CITSF pursuant to Section 3.02 hereof, (ii) the Servicer pursuant to Section 4.07 hereof, or (iii) CITSF pursuant to Section 11.01 hereof. The foregoing shall be subject to the provision that, in any case in which the Financed Boat shall have suffered damage, the Servicer shall not expend funds in connection with the repair or the repossession of such Financed Boat unless it shall determine in its sole discretion that such repair and/or repossession will increase the Net Liquidation Proceeds of the related Contract.
(c) The Servicer may ▇▇▇ to enforce or collect upon Contracts, including foreclosure of any security interest in a Financed Boat, in its own name, if possible, or as agent for the Trust. If the Servicer elects to commence a legal proceeding to enforce a Contract or any Insurance Policy in respect thereof, the act of commencement shall be deemed to be an automatic assignment of the Contract to the Servicer for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Contract on the ground that it is not a real party in interest or a holder entitled to enforce the Contract, the Trust shall, at the Servicer's expense, take such steps as the Servicer deems necessary to enforce the Contract, including bringing suit in its name or the names of the Securityholders.
(d) Prior to a Service Trans...
Realization Upon Contracts. (a) Consistent with the Required Standard of Care, the Servicer shall use its best efforts to repossess (or otherwise comparably convert the ownership of) and liquidate any Financed Vehicle securing a Contract with respect to which the Servicer has determined that payments thereunder are not likely to be resumed, as soon as is practicable after default on such Contract but in no event later than the date on which a Contract has become a Liquidated Contract (other than in the case of Financed Vehicles where neither the Financed Vehicle nor the Obligor can be physically located by the Servicer using procedures consistent with the Required Standard of Care) and other than in the case of an Obligor who is subject to a bankruptcy proceeding); provided, however, that the Servicer may elect not to repossess a Financed Vehicle within such time period if in accordance with the Required Standard of Care it determines that the net proceeds ultimately recoverable with respect to such Contract would be increased by forbearance. The Servicer is authorized to follow such customary practices and procedures as it shall deem necessary or advisable, consistent with the Required Standard of Care which practices and procedures may include reasonable efforts to realize upon any recourse to Dealers, the sale of the related Financed Vehicle at public or private sale, the submission of claims under an Insurance Policy and other actions, including entering into settlements with Obligors, by the Servicer in order to realize upon such a Contract. The foregoing is subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with any repair or towards the repossession of such Financed Vehicle unless it shall determine in its good faith business judgment that such repair and/or repossession shall increase the proceeds of liquidation of the related Contract by an amount greater than the amount of such expenses. All amounts received upon liquidation of a Financed Vehicle shall be remitted directly by the Servicer to the Collection Account without deposit into any intervening account as soon as practicable, but in no event later than one (1) Business Day after receipt thereof. The Servicer shall be entitled to recover all reasonable expenses incurred by it in the course of repossessing and liquidating a Financed Vehicle. The Servicer shall recover such reasonable expenses based on the information cont...
Realization Upon Contracts. 38 SECTION 3.04. INSURANCE.............................................................39 SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES................39 SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.................40 SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.........................42 SECTION 3.08. SERVICING COMPENSATION................................................42 SECTION 3.09. REPORTING BY THE SERVICER.............................................42 SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE.....................................45 SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT...............46 SECTION 3.12. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING CONTRACTS...................................................46 SECTION 3.13. FIDELITY BOND.........................................................46 SECTION 3.14. INDEMNIFICATION; THIRD PARTY CLAIMS...................................47 SECTION 3.15. REPORTS TO SECURITYHOLDERS AND THE RATING AGENCIES....................47 SECTION 3.16. ACCESS TO LIST OF NOTEHOLDERS' NAMES AND ADDRESSES....................47 ARTICLE IV - DISTRIBUTIONS; SPREAD ACCOUNT;
Realization Upon Contracts. The Backup Servicer shall have no responsibility for any deficiency collections or the obligation to realize upon any Dealer Recourse. The Indenture Trustee hereby agrees that it shall assume the obligations of the Servicer under Section 3.3 of the Sale and Servicing Agreement solely with respect to realization upon any Dealer Recourse.
Realization Upon Contracts. On behalf of the Trust, the Indenture Trustee, the Class A Insurer and the Backup Insurer, the Servicer shall use reasonable efforts, in accordance with the Collection Guidelines and prudent servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the Servicer shall have determined eventual payment in full is unlikely, as soon as practicable after the Servicer makes such determination. The Servicer shall follow such prudent practices and procedures as would be deemed prudent in the servicing of comparable receivables, consistent with the standard of care required by Section 4.01(b) which may include reasonable efforts to sell the Financed Vehicle at public or private sale. If the Backup Servicer has become the Servicer, it shall be entitled to receive Repossession Expenses in accordance with Section 5.02 hereof.