Warranty Loans. The Seller agrees that, with respect to any Sale Asset, in the event of a breach of any representation or warranty set forth in Article III applicable to such Sale Asset at the time of the Sale of such Sale Asset (each such Sale Asset, a "Warranty Loan"), no later than 10 Business Days following the earlier of (x) knowledge of such breach on the part of the Seller and (y) receipt by the Seller of written notice thereof given by the Purchaser, the Administrative Agent or the Collateral Manager, the Seller shall either (a) pay to the Collection Account in immediately available funds the Retransfer Price with respect to the Warranty Loan(s) to which such breach relates; provided, that no such repayment shall be required to be made with respect to any Warranty Loan (and such Loan shall cease to be a Warranty Loan) if, the Administrative Agent determines in its sole discretion that such Warranty Loan can be (and such Warranty Loan is) cured or brought into compliance, as applicable, on or before the expiration of such ten (10) Business Day period; (b) substitute for such Warranty Loan(s) one or more Substitute Loans or (c) sell such Warranty Loan(s) in accordance with Section 2.17 of the LSA. It is understood and agreed that the obligation of the Seller pursuant to this Section 6.1 is not intended to, and shall not, constitute a guaranty of the collectability or payment of any Loan which is not collected, not paid or uncollectible on account of the insolvency, bankruptcy or financial inability to pay of the related Obligor. Upon repayment of Advances or substitution of the Warranty Loan in accordance with this Section 6.1, the Purchaser shall, automatically and without further action, be deemed to transfer, assign and set over to the Seller, without recourse, representation or warranty of any kind, except as to the absence of Liens, charges or encumbrances created by or arising solely as a result of actions of the Purchaser, such Loan and all future monies due or to become due with respect thereto, the underlying collateral, all proceeds of such Loan and recoveries and insurance proceeds relating thereto, all rights to security for such Loan and all proceeds and products of the foregoing. The Purchaser shall, at the sole expense of the Seller, execute such documents and instruments of transfer as may be prepared by the Seller and take such other actions as may be reasonably requested by the Seller in order to effect the transfer of such Loan pursuant to this Se...
Warranty Loans. 15 SECTION 6.1
Warranty Loans
