Common use of Redesignation of Vehicles Clause in Contracts

Redesignation of Vehicles. (a) Upon a Program Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, including the occurrence and continuance of a Manufacturer Event of Default with respect to the Manufacturer of such Program Vehicle, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 Sections 4.1.1, 4.1.2, 4.1.5 and 4.1.6 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV VII Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 Sections 4.1.1, 4.1.2, 4.1.5 and 4.1.6 as applied to this Section 14 and all such other conditions, requirements or restrictions applicable to the leasing of Eligible Vehicles under this Lease with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the each applicable Group VII Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Dateredesignation, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designationdesignation and (v) no Manufacturer Event of Default with respect to the related Manufacturer has occurred and is continuing. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance pay to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, including the occurrence and continuance of a Manufacturer Event of Default with respect to the Manufacturer of such Program Vehicle, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either either (a) such designation meets the conditions of Section 4.2 Sections 4.1.1, 4.1.2, 4.1.5 and 4.1.6 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV VIII Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 Sections 4.1.1, 4.1.2, 4.1.5 and 4.1.6 as applied to this Section 14 and all such other conditions, requirements or restrictions applicable to the leasing of Eligible Vehicles under this Lease with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the each applicable Group VIII Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Dateredesignation, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designationdesignation and (v) no Manufacturer Event of Default with respect to the related Manufacturer has occurred and is continuing. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance pay to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s 's becoming ineligible for repurchase by its Manufacturer or for sale in accordance with at Auction under the applicable Auction ProceduresVehicle Disposition Program, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such the Vehicle to the Manufacturer or the designated auction site Auction prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such the related Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of of, as applicable, Sections 4.2(a) and (c) (as Section 4.2 4.2(c) relates to the Maximum Non-Program Percentage), or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Sections 4.2(a) or (c) (as Section 4.2 4.2(c) relates to the Maximum Non-Program Percentage), in each case as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV II Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon At any time, including upon the occurrence of a Manufacturer Event of Default with respect to the Manufacturer of any Program Vehicle or a Program Vehicle’s 's becoming ineligible for repurchase by its Manufacturer or for sale in accordance with at Auction under the applicable Auction ProceduresManufacturer Program, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Manufacturer Program, or due to any failure or inability to return such the Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum TermRepurchase Period, or due to any other event or circumstance, the applicable Servicer thereof may designate such the related Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle Vehicle; provided that no Amortization Event or Potential Amortization Event has occurred and if either (a) such designation meets is continuing and provided further that no failure or violation of the conditions requirements of Section 4.2 24.17 has occurred and is continuing or would be caused by such redesignation and no failure or violation of any other condition, requirement, or restriction specified in any Series 1997 Variable Funding Supplement would be caused by such redesignation (b) subject to the right of the Series 1997 Variable Funding Noteholders holding the requisite Invested Amount of each applicable Series of Series 1997 Variable Funding Notes included in the Group IV Series of Notes waiveto waive such violation, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred1997 Variable Funding Supplements); provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Payment Date, and (y) the minimum level of Enhancement required under the applicable each Series 1997 Variable Funding Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable At any time, the Servicer may designate a Non-Program Vehicle as a Program Vehicle if such Vehicle; provided, howeveras a Program Vehicle, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall will be an Eligible Vehicle, (ii) such Vehicle qualifies as ; provided that the related Manufacturer Program is an Eligible Vehicle under the applicable Eligible Vehicle Disposition Manufacturer Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged that such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance is entitled to the applicable benefits of its Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle Program and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part no failure or violation of the Initial Acquisition Cost conditions precedent to leasing of Program Vehicles in Section 4.2 or any other condition, requirement, or restriction specified in any Series 1997 Variable Funding Supplement would be caused by such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the redesignation; provided, further, in each case, that any additional Monthly Base Rent due on the next succeeding Due Date in an amount equal with respect to each such Vehicle, relating to the excess (decrease, if any) , of the Net Book Value of such Vehicle upon such redesignation over under the original Net Book Value of such Vehicle immediately prior to such redesignationnewly applicable Depreciation Schedule, shall be paid on the next succeeding Payment Date.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s 's becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV II Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation. (c) Any Financed Vehicle shall be redesignated as an Acquired Vehicle for all purposes of this Lease, the Indenture and the Master Collateral Agency Agreement, and shall become subject to the Operating Lease and shall cease to be subject to the Financing Lease, upon the completion of the transfer (including the re-registration of title ownership) of such Financed Vehicle to the Lessor pursuant to the Limited Guarantee and Reimbursement Agreement.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s 's becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such the Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such the related Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, Program and (iii) that the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to as of such redesignationdate.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV III Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon a Program Group IV Repurchase Vehicle’s 's becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction ProceduresRepurchase Program procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Repurchase Program, or due to any failure or inability to return such Group IV Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, the applicable Servicer may designate such Vehicle as a Group IV Non-Program Repurchase Vehicle if such Group IV Vehicle, as a Group IV Non-Program Repurchase Vehicle, will be an Eligible Non-Repurchase Vehicle and an Eligible Vehicle and if either (a) such designation meets the applicable conditions of Section 4.2 2.5 hereof or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 2.5 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Group IV Vehicle, relating to the decrease, if any, of the Net Book Value of such Group IV Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the applicable Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Group IV Non-Program Repurchase Vehicle as a Program Group IV Repurchase Vehicle if such Group IV Vehicle, as a Group IV Repurchase Vehicle, will be an Eligible Repurchase Vehicle and if either (a) such designation meets the applicable conditions of Section 2.5 hereof or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 2.5 as applied to this Section 14 and all such other conditions, requirements or restrictions with respect to which a failure or violation has occurred; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Date, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Group IV Vehicle was were a Program Group IV Repurchase Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (ivii) the related Manufacturer has acknowledged such designation. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, to the extent that such amount is then due and payable to the Manufacturer, which amount shall be deemed to be part of the Initial Acquisition Capitalized Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.

Redesignation of Vehicles. (a) Upon a Program Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale in accordance with applicable Auction Procedures, due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Vehicle Disposition Program, or due to any failure or inability to return such Vehicle to the Manufacturer or the designated auction site prior to the expiration of the Maximum Term, or due to any other event or circumstance, including the occurrence and continuance of a Manufacturer Event of Default with respect to the Manufacturer of such Program Vehicle, the applicable Servicer may designate such Vehicle as a Non-Program Vehicle if such Vehicle, as a Non-Program Vehicle, will be an Eligible Vehicle and if either (a) such designation meets the conditions of Section 4.2 Sections 4.1.1, 4.1.2, 4.1.5 and 4.1.6 or (b) the Noteholders holding the requisite Invested Amount of each applicable Series of Notes included in the Group IV V Series of Notes waive, in each case as and to the extent permitted under the related Series Supplement, the requirements of Section 4.2 Sections 4.1.1, 4.1.2, 4.1.5 and 4.1.6 as applied to this Section 14 and all such other conditions, requirements or restrictions applicable to the leasing of Eligible Vehicles under this Lease with respect to which a failure or violation has occurred; provided, in each case, that (x) any additional Monthly Base Rent due with respect to each such Vehicle, relating to the decrease, if any, of the Net Book Value of such Vehicle under the newly applicable Depreciation Schedule, shall be paid by the applicable Lessee on the next succeeding Due Date, and (y) the minimum level of Enhancement required under the each applicable Group V Series Supplement, after giving effect to such designation, shall be satisfied on the date of designation. (b) The applicable Servicer may designate a Non-Program Vehicle as a Program Vehicle; provided, however, that (i) upon such redesignation and through and including the applicable Vehicle Lease Expiration Dateredesignation, such Vehicle shall be an Eligible Vehicle, (ii) such Vehicle qualifies as an Eligible Vehicle under the applicable Eligible Vehicle Disposition Program, (iii) the Capitalized Cost, Net Book Value and Depreciation Charges with respect to such Vehicle shall be recalculated as of the date of such redesignation as if such Vehicle was a Program Vehicle at the time of the initial related Vehicle Lease Commencement Date, and (iv) the related Manufacturer has acknowledged such designationdesignation and (v) no Manufacturer Event of Default with respect to the related Manufacturer has occurred and is continuing. Upon any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor shall advance pay to the applicable Manufacturer the difference (if any) between the original Capitalized Cost of such Vehicle and the Capitalized Cost of such Vehicle upon redesignation, which amount shall be deemed to be part of the Initial Acquisition Cost of such Vehicle and (y) the applicable Lessee shall be entitled to a credit against the Monthly Base Rent due on the next succeeding Due Date in an amount equal to the excess (if any) of the Net Book Value of such Vehicle upon such redesignation over the original Net Book Value of such Vehicle immediately prior to such redesignation.