Common use of Required Addition Clause in Contracts

Required Addition. If, at the close of business on the last day of any Collection Period, the Net Adjusted Pool Balance on such day is less than the Required Pool Balance as of the following Distribution Date (after giving effect to the allocations, distributions, withdrawals and deposits to be made on such Distribution Date), then the Transferor will, within ten Business Days following the end of such Collection Period, designate additional Eligible Accounts as Additional Accounts such that, after giving effect to the transfer to the Issuer on the applicable Addition Date of all Eligible Receivables (and the Related Security) arising in connection with such Additional Accounts, the Net Adjusted Pool Balance at the close of business on such Addition Date will be at least equal to such Required Pool Balance. The Transferor will satisfy the conditions specified in Section 2.06(d) in designating such Additional Accounts and transferring the related Receivables to the Issuer. The failure of the Transferor to transfer Receivables to the Issuer as provided in this Section 2.06(a) solely as a result of the unavailability of a sufficient amount of Eligible Receivables will not constitute a breach of this Agreement; provided, however, that any such failure will nevertheless result in the occurrence of an Amortization Event described in Section 5.01(i) of the Indenture. In lieu of, or in addition to, designating Additional Accounts as required pursuant to this Section 2.06(a), the Transferor may transfer interests in Other Floorplan Assets in accordance with Section 2.07.

Required Addition. If, at the close of business on the last day of any Collection Period, the Net Adjusted Pool Balance on such day (after giving effect to any deposits to the Excess Funding Account in respect of such day pursuant to Section 8.03(b) of the Indenture) is less than the Required Pool Balance as of the following Distribution Date (after giving effect to the allocations, distributions, withdrawals and deposits to be made on such Distribution Date)day, then the Transferor will, within ten Business Days following the end of such Collection Period, designate additional Eligible Accounts as Additional Accounts or transfer Interests in Other Floorplan Assets to the Issuer such that, after giving effect to the transfer to the Issuer on the applicable Addition Date of all Eligible Receivables (and the Related Security) arising in connection with such Additional AccountsAccounts or Interests in Other Floorplan Assets, as applicable, the Net Adjusted Pool Balance at the close of business on such Addition Date will be at least equal to such Required Pool Balance. The Transferor will satisfy the conditions specified in Section 2.06(d) in designating such Additional Accounts and transferring the related Transferred Receivables or Interests in Other Floorplan Assets to the Issuer. The failure of the Transferor to transfer Transferred Receivables or Interests in Other Floorplan Assets to the Issuer as provided in this Section 2.06(a) solely as a result of the unavailability of a sufficient amount of Eligible Receivables or Interest in Other Floorplan Assets will not constitute a breach of this Agreement; provided, however, that any such failure will nevertheless result in the occurrence of an Amortization Event described in Section 5.01(i) of the Indenture. In lieu of, or in addition to, designating Additional Accounts as required pursuant to this Section 2.06(a), the Transferor may transfer interests in Other Floorplan Assets in accordance with Section 2.07.