Common use of Redesignation of Vehicles Clause in Contracts

Redesignation of Vehicles. (a) At any time, including upon the occurrence of a Manufacturer Event of Default with respect to the Manufacturer of any Program Vehicle or any such Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale at Auction under the applicable Manufacturer Program due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Manufacturer Program, or due to any failure or inability to return the Vehicle to the Manufacturer or the designated auction prior to the expiration of the Repurchase Period, or due to any other event or circumstance, the Servicer (or the related Sub-Servicer) may redesignate the related Vehicle as a Non-Program Vehicle; provided that, with respect to any such redesignation other than a redesignation pursuant to and in accordance with Section 18, no Amortization Event or Potential Amortization Event with respect to any Series of Group I Notes has occurred and is continuing or would be caused by such redesignation; and provided further, in each case, in connection with any such redesignation, the Servicer shall assign a new Depreciation Schedule for such Vehicle as a Non-Program Vehicle, and in connection therewith, the Lessee of such Vehicle shall pay on the next succeeding Payment Date, as additional Monthly Base Rent due with respect to such Vehicle, an amount equal to the excess, if any, of (i) the Net Book Value of such Vehicle immediately before the redesignation over (ii) the Net Book Value of such Vehicle after recomputing the Net Book Value as of the date of such redesignation by applying the new Depreciation Schedule for such Vehicle as though such Vehicle had been a Non-Program Vehicle since the Vehicle Lease Commencement Date for such Vehicle. Subsequent to the occurrence of a Manufacturer Event of Default pursuant to clause (ii) of the definition thereof with respect to the Manufacturer of any Program Vehicle, the Servicer (or the related Sub-Servicer) shall promptly notify the Rating Agencies with respect to each Series of Group I Notes of any redesignation of Program Vehicles of such Manufacturer as Non-Program Vehicles pursuant to this Section 14.

Redesignation of Vehicles. (a) At any time, including upon the occurrence of a Manufacturer Event of Default with respect to the Manufacturer of any Mandatory Program Vehicle or any such Vehicle’s becoming ineligible for repurchase by its Manufacturer or for sale at Auction under the applicable Manufacturer Program due to physical damage, repair charges or accrued mileage, in each case in excess of that permitted under the related Manufacturer Program, or due to any failure or inability to return the Vehicle to the Manufacturer or the designated auction prior to the expiration of the Repurchase Period, or due to any other event or circumstance, the Servicer (or the related Sub-Servicer) may redesignate the related Vehicle as a Non-Program Vehicle; provided that, with Vehicle Redesignations. With respect to any such redesignation other than Lease Vehicle that is a redesignation pursuant to and in accordance with Section 18, no Amortization Event or Potential Amortization Event with respect to Program Vehicle leased by any Series Lessee hereunder as of Group I Notes has occurred and is continuing or would be caused by such redesignation; and provided further, in each case, in connection with any such redesignationdate of determination, the Servicer Lessor shall assign a new Depreciation Schedule for on the date specified in Sub-Clause 2.5(d) (Timing of Redesignations) redesignate such Lease Vehicle as a Non-Program Vehicle, and in connection therewith, if: (i) a Manufacturer Event of Default is continuing with respect to the Lessee Manufacturer of such Lease Vehicle shall pay on as of such date; or (ii) as of any such date occurring after the next succeeding Payment Date, as additional Monthly Base Rent due Minimum Program Term End Date with respect to such Lease Vehicle, such Lease Vehicle was returned as of such date pursuant to the terms of the Manufacturer Program with respect to such Lease Vehicle, the Manufacturer of such Lease Vehicle would not be obligated to pay a repurchase price for such Lease Vehicle, or guarantee the disposition proceeds to be received for such Vehicle, in each case in an amount at least equal to the excess, if any, of (i1) the Net Book Value of such Vehicle immediately before the redesignation over Lease Vehicle, as of such date, minus (ii2) the Net Book Value Final Base Rent that would be payable in respect of such Vehicle after recomputing Lease Vehicle, assuming that such date were the Net Book Value as of the date of such redesignation by applying the new Depreciation Schedule for such Vehicle as though such Vehicle had been a Non-Program Vehicle since the Vehicle Lease Commencement Disposition Date for such Lease Vehicle. Subsequent to , minus (3) the occurrence of a Manufacturer Event of Default pursuant to clause (ii) of the definition thereof Excess Mileage Charges with respect to the Manufacturer of any Program such Lease Vehicle, that would be applicable as of such date, assuming that such date were the Servicer Disposition Date, minus (or 4) the related Sub-Servicer) shall promptly notify the Rating Agencies Excess Damage Charges with respect to each Series of Group I Notes of any redesignation of Program Vehicles such Lease Vehicle, that would be applicable as of such Manufacturer date, assuming that such date were the Disposition Date, minus (5) the Pre-VLCD Program Vehicle Depreciation Amount paid or payable with respect to such Lease Vehicle, as Nonof such date, minus (6) the Program Vehicle Depreciation Assumption True-Program Vehicles pursuant Up Amount paid or payable with respect to this Section 14such Lease Vehicle, as of such date.