Common use of Break Payments Clause in Contracts

Break Payments. (a) Party B shall pay Break Payments which it receives to Party A in accordance with 5.1(c) of the Supplementary Terms Notice, to the extent that amounts are available to make that payment. (b) Subject to paragraphs (c) and (d), if Party A in any capacity (including in its capacity as Servicer) waives or reduces the amount of any Break Payment otherwise due from an Obligor, Party A agrees that Party B's obligation under paragraph (a) is reduced in respect of the Break Payment so waived or to the extent of the reduction of the Break Payment (as the case may be). (c) Party A and Party B agree that (unless Party A otherwise notifies Party B in writing) Party A will waive all Break Payments otherwise payable by an Obligor if the total principal prepayments by that Obligor under the relevant Purchased Receivable (excluding scheduled principal repayments) does not exceed $5,000 in any calendar year.