Common use of Realization upon Defaulted Contracts Clause in Contracts

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with the servicing standard specified in Section 4.01, 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 Master 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 motor vehicle retail installment sales contracts and installment loans 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 Master Servicer deems it 44 50 necessary, in the name of the Owner Trustee or on behalf of the Owner Trustee. The Master 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 Master Servicer shall not be required to expend its own funds in repairing such Financed 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. The Master 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 5.02.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent In accordance with the servicing standard procedures specified in Section 4.01the Servicing Agreement, to repossess the Servicer shall repossess, or otherwise comparably convert the ownership of the Financed of, any Leased Vehicle securing any a Defaulted Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments. Such servicing procedures may include reasonable efforts payments pursuant to realize upon any recourse to Dealers and selling the Financed Vehicle at public or private saleServicing Agreement. In connection with such repossession or other conversion, the Master Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual for prudent responsible holders of motor vehicle retail installment sales lease contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Leased Vehicle or any Contract in defaultDefaulted Contract, may commence and or prosecute any judicial proceedings in respect of such Contract in its own name orname, or if the Master Servicer deems it 44 50 necessary, in the name of the Owner Trustee Buyer or the Trustee, on behalf of the Buyer or on behalf of the Owner Trustee. The Master Servicer's obligations under this Section are subject to the provision that, in the case of damage to a Financed Leased Vehicle from an uninsured insured cause, the Master Servicer shall not be required to expend its own funds in repairing such Financed Vehicle motor vehicle unless it shall determine (i) that such restoration will increase the proceeds of liquidation Liquidation Proceeds 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 Policyinsurance policy. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a defaulted 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 Policyinsurance policy. All Net Liquidation Proceeds (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Collection Master Collections Account (without deposit in any intervening account) to the extent required by Section 5.02the Servicing Agreement.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with the servicing standard specified in Section 4.01, 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 Master 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 motor vehicle retail installment sales contracts and installment loans 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 Master Servicer deems it 44 50 45 51 necessary, in the name of the Owner Trustee or on behalf of the Owner Trustee. The Master 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 Master Servicer shall not be required to expend its own funds in repairing such Financed 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. The Master 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 5.02.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with the servicing standard specified in Servicing Standards and Section 4.013.01, 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 Master 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 motor vehicle retail installment sales contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Vehicle or any Contract contract in default, may commence and prosecute any proceedings in respect of such Contract in its own name or, if the Master Servicer deems it 44 50 necessary, in the name of the Owner Issuer or the Indenture Trustee or on behalf of the Owner Issuer or the Indenture Trustee. The Master Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, the Master Servicer shall not be required to expend its own funds in repairing such Financed Vehicle 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, expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable Insurance Policyinsurance policy. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a defaulted Defaulted Contract; provided, however, provided 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 Policyinsurance 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 5.024.02.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with the servicing standard specified in Servicing Standards and Section 4.013.01, 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 Master 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 motor vehicle retail installment sales contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Vehicle or any Contract contract in default, may commence and prosecute any proceedings in respect of such Contract in its own name or, if the Master Servicer deems it 44 50 necessary, in the name of the Owner Issuer or the Indenture Trustee or on behalf of the Owner Issuer or the Indenture Trustee. The Master Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, the Master Servicer shall not be required to expend its own funds in repairing such Financed Vehicle 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, expenses and (ii) that such expenses will be recoverable recover able by it either as Liquidation Expenses or as expenses recoverable under an applicable Insurance Policyinsurance policy. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a defaulted Defaulted Contract; provided, however, provided 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 Policyinsurance 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 5.024.02.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with the servicing standard specified in Section 4.013.01, 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 Master 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 motor vehicle retail installment sales contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Vehicle or any Contract contract in default, may commence and prosecute any proceedings in respect of such Contract in its own name or, if the Master Servicer deems it 44 50 necessary, in the name of the Owner Issuer or the Indenture Trustee or on behalf of the Owner Issuer or the Indenture Trustee. The Master Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, the Master Servicer shall not be required to expend its own funds in repairing such Financed Vehicle 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, expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable Insurance Policyinsurance policy or under an insurance reserve established by the Servicer. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a defaulted Defaulted Contract; provided, however, provided 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 Policyinsurance 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 5.024.02.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with the servicing standard specified in Servicing Standards and Section 4.013.01, 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 Master 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 motor vehicle retail installment sales contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Vehicle or any Contract contract in default, may commence and prosecute any proceedings in respect of such Contract in its own name or, if the Master Servicer deems it 44 50 necessary, in the name of the Owner Issuer or the Indenture Trustee or on behalf of the Owner Issuer or the Indenture Trustee. The Master Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, the Master Servicer shall not be required to expend its own funds in repairing such Financed Vehicle 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, expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable Insurance Policyinsurance policy. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a defaulted Defaulted Contract; provided, however, provided 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 Policyinsurance 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 5.024.02.

Realization upon Defaulted Contracts. The Master Servicer shall use its best efforts, consistent with In the servicing standard specified event that a Contract comes into and continues in Section 4.01, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which default and no satisfactory arrangements arrangement can be made for collection of delinquent payments. Such servicing procedures may include reasonable efforts payments pursuant to realize upon any recourse to Dealers and selling Section 3.06 hereof, the Financed Vehicle at public or private saleMaster Servicer shall take all steps necessary for Repossession. In connection with such repossession or other conversionRepossession, the Master Servicer shall shall, consistent with Section 3.13 hereof, follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual for prudent holders in its general servicing of motor vehicle retail installment sales contracts contacts and installment loans 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 Master Servicer deems it 44 50 necessary, in the name of the Owner Trustee or on behalf of the Owner Trusteeloan agreements for manufactured housing. The Master Servicer's obligations under this Section are foregoing is subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, that the Master Servicer shall not be required to expend its own funds in repairing such Financed Vehicle connection with any Repossession or like procedure or towards the restoration of any property unless it shall determine (i) that such restoration and/or Repossession will increase the proceeds of liquidation of the related Contract, Contract to Certificateholders after reimbursement reimbursements to itself for such expenses, expenses and (ii) that such expenses will be recoverable by to it either as through Liquidation Expenses Proceeds (respecting which it shall have priority for purposes of withdrawals from the Certificate Account pursuant to Section 3.12 hereof) or as expenses recoverable under an applicable through Insurance PolicyProceeds (respecting which it shall have similar priority). The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a defaulted Contractsuch proceedings; provided, however, that it shall be entitled to reimbursement thereof from the proceeds of liquidation of the related Manufactured Home, as contemplated in Section 3.12 hereof. Notwithstanding the foregoing, the Master Servicer shall not be entitled to recover legal expenses incurred in connection with any Repossession or like procedure where the Contract is reinstated and such Repossession or like procedure where the Contract is reinstated and such repossession or like procedure is terminated prior to completion, other than from sums received from the Obligor with respect to such expenses. The decision of the Master Servicer to repossess a defaulted Contract shall be subject to instructions from the Trustee not to repossess upon such Contract, upon a determination by the Trustee that the proceeds of such Repossession would not exceed the 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 5.02of bringing such a proceeding.