Common use of Realization Upon Contracts Clause in Contracts

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 contained in the Servicer's Certificate delivered on the related Determination Date. The Servicer shall pay on behalf of the Borrower any personal property taxes assessed on repossessed Financed Vehicles. The Servicer shall be entitled to reimbursement of any such tax from Net Liquidation Proceeds with respect to such Contract. (b) If the Servicer elects to commence a legal proceeding to enforce a Dealer Agreement or Dealer Assignment, the act of commencement shall be deemed to be an automatic assignment from the Borrower and the Lender to the Servicer of the rights under such Dealer Agreement and Dealer Assignment for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Dealer Agreement or Dealer Assignment on the grounds that it is not a real party in interest or a Person entitled to enforce the Dealer Agreement or the Dealer Assignment, the Borrower or the Lender, as the case may be, in each case at the Borrower's expense, shall take such steps as the Servicer deems reasonably necessary to enforce the Dealer Agreement or Dealer Assignment, including bringing suit in its name or the name of the Borrower, the Lender and/or the Borrower for the benefit of the Lender. All amounts recovered 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. (c) The Servicer agrees that prior to delivering any repossessed Finance Vehicle for sale to any dealer, it shall make such filings and effect such notices as are necessary under the UCC to preserve the Borrower's or the Collateral Agent's ownership interest (or security interest, as the case may be) in such repossessed Financed Vehicle delivered for sale to dealers. (d) In the event that any Contract becomes a Liquidated Contract during any Collection Period, on (and after) the Determination Date related to such Collection Period, the Principal Balance of such Contract shall be deemed to be zero for the purpose of determining the outstanding Aggregate Principal Balance of the Contracts. For clarity, such deemed reduction in the Aggregate Principal Balance of the Contracts shall not constitute a release by the Collateral Agent of its right, title and interest to such Liquidated Contract.

Realization Upon Contracts. (a) Consistent The Servicer will, consistent with customary servicing procedures and the Required Standard terms of Carethis Agreement, act with respect to the Contracts in such manner as will maximize the receipt of principal and interest on the Contracts and Net Liquidation Proceeds in respect of Defaulted Contracts. Notwithstanding the standard of care specified in Section 4.01 hereof, the Servicer shall use its best efforts to repossess (or otherwise comparably convert commence procedures for the ownership of) and liquidate repossession of any Financed Vehicle securing a Contract or take such other steps that in the Servicer's reasonable judgment will maximize the receipt of principal and interest or Net Liquidation Proceeds with respect to which the Contract secured by such Financed Vehicle, including, without limitation, selling such Financed Vehicle at a public or private sale, subject to the requirements of the applicable state and federal law. In connection with such repossession or foreclosure, 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 shall follow such customary practices and procedures as it shall deem necessary or advisable, advisable and as shall be consistent with Section 4.01 hereof. In the Required Standard event that title to any Financed Vehicle is acquired in foreclosure or by conveyance in lieu of Care which practices and procedures may include reasonable efforts to realize upon any recourse to Dealersforeclosure, the deed or certificate of sale shall be issued to the Trust, or, at its election, to its nominee on behalf of the related Trust. (b) The Servicer shall be entitled to recover all reasonable fees of third parties and expenses incurred by it in the course of converting any Financed Vehicle at public or private saleinto cash proceeds including, the submission without limitation, expenses relating to recovery and repossession of claims under an Insurance Policy and other actionssuch Financed Vehicle, including entering into settlements from liquidation proceeds with Obligors, respect to such Financed Vehicle. The Net Liquidation Proceeds realized in connection with any such action with respect to a Contract shall be deposited by the Servicer in order the Collection Account in the manner specified in Section 5.02 hereof and shall be applied to realize upon reduce (or to satisfy, as the case may be) the Purchase Price of the Contract, if such a ContractContract is to be purchased by CITSF pursuant to Section 3.02 hereof, is to be purchased by the Servicer pursuant to Section 4.07 hereof, or is to be purchased by CITSF pursuant to Section 11.02 hereof. The foregoing is 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 any the repair or towards the repossession of such Financed Vehicle unless it shall determine in its good faith business judgment sole discretion that such repair and/or repossession shall will increase the proceeds of liquidation Net Liquidation Proceeds of the related Contract by an amount equal to or 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 . (1c) Business Day after receipt thereof. The Servicer shall be entitled may xxx to recover all reasonable expenses incurred by it enforce or collect upon Contracts, including foreclosure of any security interest in the course of repossessing and liquidating a Financed Vehicle, in its own name, if possible, or as agent for the Trust. The Servicer shall recover such reasonable expenses based on the information contained in the Servicer's Certificate delivered on the related Determination Date. The Servicer shall pay on behalf of the Borrower any personal property taxes assessed on repossessed Financed Vehicles. The Servicer shall be entitled to reimbursement of any such tax from Net Liquidation Proceeds with respect to such Contract. (b) If the Servicer elects to commence a legal proceeding to enforce a Dealer Agreement Contract or Dealer Assignmentany Insurance Policy in respect thereof, the act of commencement shall be deemed to be an automatic assignment from of the Borrower and the Lender Contract to the Servicer of the rights under such Dealer Agreement and Dealer Assignment for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Dealer Agreement or Dealer Assignment Contract on the grounds ground that it is not a real party in interest or a Person holder entitled to enforce the Dealer Agreement or the Dealer AssignmentContract, the Borrower or the LenderTrust shall, as the case may be, in each case at the BorrowerServicer's expense, shall take such steps as the Servicer deems reasonably necessary to enforce the Dealer Agreement or Dealer AssignmentContract, including bringing suit in its name or the name names of the Borrower, the Lender and/or the Borrower for the benefit of the Lender. All amounts recovered 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. (c) The Servicer agrees that prior to delivering any repossessed Finance Vehicle for sale to any dealer, it shall make such filings and effect such notices as are necessary under the UCC to preserve the Borrower's or the Collateral Agent's ownership interest (or security interest, as the case may be) in such repossessed Financed Vehicle delivered for sale to dealersSecurityholders. (d) In Prior to a Service Transfer, the event that Servicer may grant to the Obligor on any Contract becomes a Liquidated Contract during any Collection Periodrebate, on (and after) the Determination Date related to such Collection Period, the Principal Balance of such Contract shall be deemed to be zero for the purpose of determining the outstanding Aggregate Principal Balance refund or adjustment out of the ContractsCollection Account that the Servicer in good faith believes is required because of Principal Prepayment in Full. For clarity, such deemed reduction in the Aggregate Principal Balance The Servicer will not permit any rescission or cancellation of the Contracts shall not constitute a release by the Collateral Agent of its right, title and interest to such Liquidated any Contract. (e) The Servicer may enforce any due-on-sale clause in a Contract if such enforcement is called for under its then current servicing policies for obligations similar to the Contracts, provided that such enforcement is permitted by applicable law and will not adversely affect any applicable insurance policy.

Realization Upon Contracts. (a) Consistent The Servicer will, consistent with customary servicing procedures and the Required Standard terms of Carethis Agreement, act with respect to the Contracts in such manner as will maximize the receipt of principal and interest on the Contracts and Net Liquidation Proceeds in respect of Defaulted Contracts. Notwithstanding the standard of care specified in Section 4.01 hereof, the Servicer shall use its best efforts to repossess (or otherwise comparably convert commence procedures for the ownership of) and liquidate repossession of any Financed Vehicle securing a Contract or take such other steps that in the Servicer's reasonable judgment will maximize the receipt of principal and interest or Net Liquidation Proceeds with respect to which the Contract secured by such Financed Vehicle, including, without limitation, selling such Financed Vehicle at a public or private sale, subject to the requirements of the applicable state and federal law. In connection with such repossession or foreclosure, 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 shall follow such customary practices and procedures as it shall deem necessary or advisable, advisable and as shall be consistent with Section 4.01 hereof. In the Required Standard event that title to any Financed Vehicle is acquired in foreclosure or by conveyance in lieu of Care which practices and procedures may include reasonable efforts to realize upon any recourse to Dealersforeclosure, the deed or certificate of sale shall be issued to the Trust, or, at its election, to its nominee on behalf of the related Trust. (b) The Servicer shall be entitled to recover all reasonable fees of third parties and expenses incurred by it in the course of converting any Financed Vehicle at public or private saleinto cash proceeds including, the submission without limitation, expenses relating to recovery and repossession of claims under an Insurance Policy and other actionssuch Financed Vehicles, including entering into settlements from liquidation proceeds with Obligors, respect to such Financed Vehicle. The Net Liquidation Proceeds realized in connection with any such action with respect to a Contract shall be deposited by the Servicer in order the Collection Account in the manner specified in Section 5.02 hereof and shall be applied to realize upon reduce (or to satisfy, as the case may be) the Purchase Price of the Contract, if such a ContractContract is to be purchased by CITSF pursuant to Section 3.02 hereof, is to be purchased by the Servicer pursuant to Section 4.07 hereof, or is to be purchased by CITSF pursuant to Section 11.02 hereof. The foregoing is 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 any the repair or towards the repossession of such Financed Vehicle unless it shall determine in its good faith business judgment sole discretion that such repair and/or repossession shall will increase the proceeds of liquidation Net Liquidation Proceeds of the related Contract by an amount equal to or 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 . (1c) Business Day after receipt thereof. The Servicer shall be entitled may xxx to recover all reasonable expenses incurred by it in the course enforce or collect upon Contracts, including foreclosure of repossessing and liquidating any security interest on a Financed Vehicle, in its own name, if possible, or as agent for the Trust. The Servicer shall recover such reasonable expenses based on the information contained in the Servicer's Certificate delivered on the related Determination Date. The Servicer shall pay on behalf of the Borrower any personal property taxes assessed on repossessed Financed Vehicles. The Servicer shall be entitled to reimbursement of any such tax from Net Liquidation Proceeds with respect to such Contract. (b) If the Servicer elects to commence a legal proceeding to enforce a Dealer Agreement Contract or Dealer Assignmentany Insurance Policy in respect thereof, the act of commencement shall be deemed to be an automatic assignment from of the Borrower and the Lender Contract to the Servicer of the rights under such Dealer Agreement and Dealer Assignment for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Dealer Agreement or Dealer Assignment Contract on the grounds ground that it is not a real party in interest or a Person holder entitled to enforce the Dealer Agreement or the Dealer AssignmentContract, the Borrower or the LenderTrust shall, as the case may be, in each case at the BorrowerServicer's expense, shall take such steps as the Servicer deems reasonably necessary to enforce the Dealer Agreement or Dealer AssignmentContract, including bringing suit in its name or the name names of the Borrower, the Lender and/or the Borrower for the benefit of the Lender. All amounts recovered 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. (c) The Servicer agrees that prior to delivering any repossessed Finance Vehicle for sale to any dealer, it shall make such filings and effect such notices as are necessary under the UCC to preserve the Borrower's or the Collateral Agent's ownership interest (or security interest, as the case may be) in such repossessed Financed Vehicle delivered for sale to dealersSecurityholders. (d) In Prior to a Service Transfer, the event that Servicer may grant to the Obligor on any Contract becomes a Liquidated Contract during any Collection Periodrebate, on (and after) the Determination Date related to such Collection Period, the Principal Balance of such Contract shall be deemed to be zero for the purpose of determining the outstanding Aggregate Principal Balance refund or adjustment out of the ContractsCollection Account that the Servicer in good faith believes is required because of Principal Prepayment in Full. For clarity, such deemed reduction in the Aggregate Principal Balance The Servicer will not permit any rescission or cancellation of the Contracts shall not constitute a release by the Collateral Agent of its right, title and interest to such Liquidated any Contract. (e) The Servicer may enforce any due-on-sale clause in a Contract if such enforcement is called for under its then current servicing policies for obligations similar to the Contracts, provided that such enforcement is permitted by applicable law and will not adversely affect any applicable insurance policy.

Realization Upon Contracts. (a) Consistent with the Required Standard of Carestandards, policies and procedures required by this Agreement, the Program Administration Manual and the Servicing Procedures Manual, 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 forbearanceContract. The Servicer is authorized to follow such customary practices and procedures as it shall deem necessary or advisable, consistent with the Required Standard standard of Care care required by Section 2.1 hereof, which practices and procedures may include reasonable efforts to realize upon any recourse to Dealers, the sale of selling 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, actions by the Servicer in order to realize upon such a Contract. The foregoing is subject to the provision that, 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 discretion 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 Lockbox Account without deposit into any intervening account as soon as practicable, but in no event later than one (1) the 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, which expenses shall be properly documented by the Servicer and reviewed by FC Consumer, but only out of the cash proceeds of such Vehicle, any deficiency obtained from the Obligor or any amounts received from the related Dealer, as set forth in Section 2.03(a)(iii) of the Paying Agent Agreement to the extent of such expenses. The Servicer shall recover such reasonable expenses based on the information contained in the Servicer's Certificate delivered on the related Determination Date. The Servicer shall pay on behalf of the Borrower any personal property taxes assessed on repossessed Financed Vehicles. The ; the Servicer shall be entitled to reimbursement of any such tax from Net Liquidation Proceeds Recoveries with respect to such Contract, as set forth in Section 2.03(a)(iii) of the Paying Agent Agreement. (b) If the Servicer elects to commence a legal proceeding to enforce a Dealer Agreement or Dealer Assignment, the act of commencement shall be deemed to be an automatic assignment from the Borrower and the Lender Collateral Agent to the Servicer of the rights under such Dealer Agreement and Dealer Assignment for purposes of collection only. If, however, in any enforcement suit or legal proceeding proceeding, it is held that the Servicer may not enforce a Dealer Agreement or Dealer Assignment on the grounds that it is not a real party in interest or a Person entitled to enforce the Dealer Agreement or the Dealer Assignment, the Borrower or the LenderCollateral Agent, as the case may be, in each case at the Borrower's expense, shall take such steps as the Servicer deems reasonably necessary to enforce the Dealer Agreement or Dealer Assignment, including bringing suit in its name or the name of the Borrower, the Lender and/or the Borrower for the benefit of the Lendername. All amounts recovered shall be remitted directly by the Servicer to the Collection Lockbox Account without deposit into any intervening account as soon as practicable, but in no event later than one (1) the Business Day after receipt thereof. (c) The Servicer agrees that prior to delivering any repossessed Finance Vehicle for sale to any dealer, it shall make such filings and effect such notices as are necessary under the UCC to preserve the Borrower's or the Collateral Agent's ownership interest (or security interest, as the case may be) in such repossessed Financed Vehicle delivered for sale to dealers. (d) In the event that any Contract becomes a Liquidated Contract during any Collection Period, on (and after) the Determination Date related to such Collection Period, the Principal Balance of such Contract shall be deemed to be zero for the purpose of determining the outstanding Aggregate Principal Balance of the Contracts. For clarity, such deemed reduction in the Aggregate Principal Balance of the Contracts shall not constitute a release by the Collateral Agent of its right, title and interest to such Liquidated Contract.

Realization Upon Contracts. (a) Consistent The Servicer will, consistent with customary servicing practices and procedures and the Required Standard terms of Carethis Agreement, the Servicer shall use its best efforts to repossess (or otherwise comparably convert the ownership of) and liquidate any Financed Vehicle securing a Contract act with respect to which 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 has determined that payments thereunder are not likely shall be entitled 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 recover all Liquidation Expenses relating to a bankruptcy proceeding); provideddefaulted Contract, however, that from 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 liquidation proceeds ultimately recoverable with respect to such Contract would be increased by forbearanceor related Financed Boat. The Servicer is authorized Net Liquidation Proceeds realized in connection with any such action with respect to follow such customary practices and procedures as it a Contract 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, be deposited by the Servicer in order the Collection Account in the manner specified in Section 5.02 hereof and shall be applied to realize upon reduce (or to satisfy, as the case may be) the Purchase Price of the Contract, if such a ContractContract 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 is shall be subject to the provision that, in any case in which the Financed Vehicle Boat shall have suffered damage, the Servicer shall not expend funds in connection with any the repair or towards the repossession of such Financed Vehicle Boat unless it shall determine in its good faith business judgment sole discretion that such repair and/or repossession shall will increase the proceeds of liquidation Net Liquidation Proceeds 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 contained in the Servicer's Certificate delivered on the related Determination Date. The Servicer shall pay on behalf of the Borrower any personal property taxes assessed on repossessed Financed Vehicles. The Servicer shall be entitled to reimbursement of any such tax from Net Liquidation Proceeds with respect to such Contract. (bc) The Servicer may xxx 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 Dealer Agreement Contract or Dealer Assignmentany Insurance Policy in respect thereof, the act of commencement shall be deemed to be an automatic assignment from of the Borrower and the Lender Contract to the Servicer of the rights under such Dealer Agreement and Dealer Assignment for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Dealer Agreement or Dealer Assignment Contract on the grounds ground that it is not a real party in interest or a Person holder entitled to enforce the Dealer Agreement or the Dealer AssignmentContract, the Borrower or the LenderTrust shall, as the case may be, in each case at the BorrowerServicer's expense, shall take such steps as the Servicer deems reasonably necessary to enforce the Dealer Agreement or Dealer AssignmentContract, including bringing suit in its name or the name names of the Borrower, the Lender and/or the Borrower for the benefit of the Lender. All amounts recovered 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. (c) The Servicer agrees that prior to delivering any repossessed Finance Vehicle for sale to any dealer, it shall make such filings and effect such notices as are necessary under the UCC to preserve the Borrower's or the Collateral Agent's ownership interest (or security interest, as the case may be) in such repossessed Financed Vehicle delivered for sale to dealersSecurityholders. (d) In Prior to a Service Transfer, the event that Servicer may grant to the Obligor on any Contract becomes a Liquidated Contract during any Collection Periodrebate, on (and after) the Determination Date related to such Collection Period, the Principal Balance of such Contract shall be deemed to be zero for the purpose of determining the outstanding Aggregate Principal Balance refund or adjustment out of the Collection Account that the Servicer in good faith believes is required because of a Principal Prepayment or a Principal Prepayment in Full. The Servicer will not permit any rescission or cancellation of any Contract, except to the extent required by law. (e) The Servicer may enforce any due-on-sale clause in a Contract if such enforcement is called for under its then current servicing policies for obligations similar to the Contracts. For clarity, provided that such deemed reduction enforcement is permitted by applicable law and will not adversely affect any applicable Insurance Policy. (f) If CITSF, as Servicer, believes that an Obligor is likely to refinance its Contract, CITSF may in its discretion attempt to retain such Obligor as its customer by soliciting the Aggregate Principal Balance of Obligor to refinance the Contracts shall not constitute a release by the Collateral Agent of its right, title and interest to such Liquidated ContractContract with CITSF.