Common use of Replacement of Contracts Clause in Contracts

Replacement of Contracts. Upon the occurrence of a Triggering Event, Seller may elect to replace any Contract by delivering to Purchaser a replacement contract (a "Replacement Contract"), which is acceptable to Purchaser, within the time specified in this Article V. The Replacement Contract delivered by Seller must be secured by a first priority lien on an automobile and/or light-duty truck and must contain an equivalent pay-off amount as of the date of exchange, the same term, the same APR, and such other terms and provisions acceptable to Purchaser. To the extent Purchaser, in its sole discretion, accepts a Replacement Contract with a term, APR, or pay-off amount that varies in any way from that of the Contract to be replaced, the resulting yield on the investment for Purchaser must be equivalent. Seller will pay to Purchaser, or vice versa, an amount at the date of exchange which will make the exchange exact as to value and yield. Seller shall reimburse Purchaser for any and all expenses incurred by Purchaser with respect to any Contract replaced in accordance with this Article V. The decision to accept or reject a Replacement Contract is in the Purchaser's sole discretion, and Purchaser is under no obligation to accept a Contract offered by Seller as a replacement. If Purchaser does not accept the Replacement Contract, Seller must repurchase the delinquent Contract from Purchaser pursuant to Section 5.5 hereof.

Replacement of Contracts. Upon the occurrence of a Triggering Event, Seller may elect to replace any Contract by delivering to Purchaser a replacement contract (a "Replacement Contract"), which is acceptable to Purchaser, within the time specified in this Article V. 5. The Replacement Contract delivered by Seller must be secured by a first priority lien on an automobile and/or light-duty truck and must contain an equivalent pay-off amount as of the date of exchange, the same term, the same APR, and such other terms and provisions acceptable to Purchaser. To the extent Purchaser, in its sole discretion, accepts a Replacement Contract with a term, APR, APR or pay-off amount that varies in any way from that of the Contract to be replaced, the resulting yield on the investment for Purchaser must be equivalent. Seller will pay to Purchaser, or vice versa, an amount at the date of exchange which will make the exchange exact as to value and yield. Seller shall reimburse Purchaser for any and all expenses incurred by Purchaser with respect to any Contract replaced in accordance with this Article V. 5. The decision to accept or reject a Replacement Contract is in the Purchaser's sole discretion, and Purchaser is under no obligation to accept a Contract offered by Seller as a replacement. If Purchaser does not accept the Replacement Contract, Seller must repurchase the delinquent Contract from Purchaser pursuant to Section 5.5 hereof.