Common use of Simple Interest Advances Clause in Contracts

Simple Interest Advances. (i) Advance by Servicer for early payment on Simple Interest Receivables. As of the close of business on the last day of each Collection Period, the Servicer will advance an amount equal to the amount of interest due on the Simple Interest Receivables at their respective APRs for the related Collection Period (assuming the Simple Interest Receivables pay on their respective due dates) minus the amount of interest actually received on the Simple Interest Receivables during the related Collection Period (such amount, a "Simple Interest Advance"). The Servicer will be entitled to recoup this Simple Interest Advance to the extent that subsequent payments of interest on any Simple Interest Receivables received in any Collection Period exceed one month's interest on the Simple Interest Receivable and will be entitled to all payments of interest in excess of one month's interest. (ii) Advance by Servicer for non-payment on Simple Interest Receivables. The Servicer will make a Simple Interest Advance on a Simple Interest Receivable for which no payment was received as of the close of business on the last day of each Collection Period to the extent that the Servicer, in its sole discretion, determines that the Simple Interest Advance will be recoverable from subsequent collections from the related obligor or any related Liquidation Proceeds. If the Servicer subsequently determines that such Simple Interest Advance will be not be recoverable from these sources, the Servicer will be entitled to recoup the Simple Interest Advance from any collections made on the other Receivables in the Trust.