Common use of Collection Procedures Clause in Contracts

Collection Procedures. The Master Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans. A summary of the Master Servicer's collection procedures is attached hereto as Exhibit D. A written copy of any such amendment or modification shall be furnished to the Trustee. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (2) if a Mortgagor is in default or appears about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Act; provided, however, that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] permit any waiver, modification or variance of a Mortgage Loan that would (1) change the Note Rate, (2) forgive the payment of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date of the Mortgage Loan beyond _______ 20___, in any case except to the extent required under the Relief Act. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at origination.

Collection Procedures. The Master Servicer (a) On or before the date hereof, Navistar Financial will establish a system of operations, accounts and instructions to the Concentration Bank, Collection Banks, Proceeds Account Banks, International, Dealers and Account Debtors, as provided in this Section. Navistar Financial shall, subject to the provisions of Section 4.13, (i) instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable (other than any Navistar Financial Receivable referred to in clause (ii) below) to make such payments directly to a separate special purpose account of Navistar Financial maintained at a Proceeds Account Bank and containing only Proceeds (a "Proceeds Deposit Account") and (ii) subject to the provisions of Section 4.13, instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable referred to in clause (d) of the definition of Navistar Financial Receivables to make such payments (except to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time that any Permitted Receivables Sale Agreement may require otherwise with respect to mortgage loans Receivables sold thereunder) to lock-boxes (the "Lock-boxes") (in its servicing portfolio that the case of any payments in the form of cash, checks, drafts and other instruments or items for the payment of money) and accounts (the "Collection Accounts") (in the case of any payments made by wire transfer or similar electronic means) maintained by Navistar Financial with the Collection Banks. Payments on account of Wholesale Receivables shall be paid to Lock-boxes and Collection Accounts which are comparable separate from those to which payments on account of Retail Receivables are made. Navistar Financial shall, and shall request International and each Dealer to, pay forthwith into Lock-boxes and Collection Accounts, as appropriate, in the Mortgage Loans. A summary of form received (or, in the Master Servicer's collection procedures is attached hereto as Exhibit D. A written copy case of any such amendment payment received by wire transfer or modification similar electronic means, by such means), all payments on account of Wholesale Receivables and Retail Receivables received directly by Navistar Financial, International or any such Dealer; provided that payments received by International as contemplated by the proviso to the second preceding sentence shall be furnished deposited forthwith by International into the applicable retail suspense account of International (each such suspense account and each suspense account referred to in the next succeeding sentence, a "Suspense Account") maintained by a Collection Bank. Navistar Financial shall instruct each Collection Bank to transfer by wire transfer or similar electronic means, on the same business day as received, all amounts deposited by wire transfer or similar electronic means into the wholesale or retail Collection Account maintained by such Collection Bank pursuant to this Section into a special purpose account of Navistar Financial maintained at the Concentration Bank (the "Proceeds Allocation Account"); provided that, if such Collection Bank receives any such amounts on a day that is not a business day, or too late on a business day to make such a transfer in accordance with such Collection Bank's normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall instruct each Collection Bank (x) to deposit all cash, checks, drafts and other instruments or items for the payment of money paid into the wholesale or retail Lock-box (if any) maintained by such Collection Bank pursuant to this Section forthwith in the wholesale or retail Suspense Account of Navistar Financial, as appropriate, maintained by such Collection Bank (except that such Collection Bank may deal with items which are postdated, improperly endorsed or otherwise irregular in accordance with such Collection Bank's usual procedures) and (y) to transfer by wire transfer or similar electronic means all cash, checks, drafts and other instruments or items deposited into any Suspense Account maintained by such Collection Bank to the Proceeds Allocation Account on the same business day as such items clear in accordance with such Collection Bank's customary clearing schedule; provided that, if any such items so clear too late on a business day to make such a transfer in accordance with such Collection Bank's normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall not deposit or, except as set forth above in this subsection (a), cause to be deposited any amount in any Proceeds Deposit Account. The Trustee is hereby directed to instruct the Concentration Bank to follow the instructions of Navistar Financial given pursuant to this subsection (a). Navistar Financial shall instruct the Concentration Bank to retain all amounts transferred into the Proceeds Allocation Account in such account until they have been identified by Navistar Financial, either by actual identification or, so long as no Notice of Acceleration is in effect, by reasonable estimation in accordance with Navistar Financial's usual procedures, as (i) Sold Collections, (ii) Retained Collections or (iii) other amounts. Upon such identification, (w) Navistar Financial shall provide prompt notice thereof to the Concentration Bank and the Trustee, (x) Retained Collections shall be transferred forthwith to a Proceeds Deposit Account, (y) Sold Collections shall be transferred in accordance with the terms under which the underlying Receivables were sold and (z) other amounts shall be transferred in accordance with Navistar Financial's usual procedures. Consistent with Such identification by Navistar Financial shall be effected as soon as reasonably practicable. Navistar Financial shall not permit any Proceeds to remain in any account described in this subsection (a) (other than any such account that is a UCC Deposit Account) more than 10 days after receipt of such Proceeds by a Collection Bank. If, notwithstanding the foregoing, the Master Servicer may Trustee or any Purchaser shall in its discretion good faith challenge Navistar Financial's identification of any item of payment or shall in good faith challenge any of Navistar Financial's formulas for allocating items of payment, Deloitte & Touche LLP (1) waive or such other accounting firm as shall be acceptable to Navistar Financial, such Purchaser and the Trustee), at Navistar Financial's expense, shall determine the proper identification of such item of payment or the propriety of such allocation formula. If any assumption feessuch determination shall result in additional amounts being transferable to a Proceeds Deposit Account with respect to any such item of payment, late payment charges, charges for checks returned for insufficient funds, prepayment feesNavistar Financial shall promptly so transfer such additional amounts and, if anyit has been determined that Navistar Financial's formula for allocation was in error, the proper allocation formula shall thereafter be applied to allocate items of payment, subject to any subsequent revision as provided herein. No such determination shall prevent Navistar Financial, the Trustee or other fees that may be collected in the ordinary course any Purchaser from litigating a claim to a greater portion of servicing the Mortgage Loanssuch funds. Navistar Financial will use all reasonable efforts to cause International and each Account Debtor, (2) if a Mortgagor is in default or appears about Dealer, Proceeds Account Bank and Collection Bank to be in default because of a Mortgagor's financial condition, arrange comply with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal foregoing procedures and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Actinstructions; provided, however, provided that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] permit any waiver, modification or variance of a Mortgage Loan that would (1) change the Note Rate, (2) forgive the payment failure of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date them so to comply shall not constitute a breach of the Mortgage Loan beyond _______ 20___, in any case except to the extent required under the Relief Act. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at originationthis subsection.

Collection Procedures. The Master Servicer (a) On or before the date hereof, Navistar Financial will establish a system of operations, accounts and instructions to the Concentration Bank, Collection Banks, Proceeds Account Banks, International, Dealers and Account Debtors, as provided in this Section. Navistar Financial shall, subject to the provisions of Section 4.13, (i) instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable (other than any Navistar Financial Receivable referred to in clause (ii) below) to make such payments directly to a separate special purpose account of Navistar Financial maintained at a Proceeds Account Bank and containing only Proceeds (a “Proceeds Deposit Account”) and (ii) subject to the provisions of Section 4.13, instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable referred to in clause (d) of the definition of Navistar Financial Receivables to make such payments (except to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time that any Permitted Receivables Sale Agreement may require otherwise with respect to mortgage loans Receivables sold thereunder) to lock-boxes (the “Lock-boxes”) (in its servicing portfolio that the case of any payments in the form of cash, checks, drafts and other instruments or items for the payment of money) and accounts (the “Collection Accounts”) (in the case of any payments made by wire transfer or similar electronic means) maintained by Navistar Financial with the Collection Banks. Payments on account of Wholesale Receivables shall be paid to Lock-boxes and Collection Accounts which are comparable separate from those to which payments on account of Retail Receivables are made. Navistar Financial shall, and shall request International and each Dealer to, pay forthwith into Lock-boxes and Collection Accounts, as appropriate, in the Mortgage Loans. A summary of form received (or, in the Master Servicer's collection procedures is attached hereto as Exhibit D. A written copy case of any such amendment payment received by wire transfer or modification similar electronic means, by such means), all payments on account of Wholesale Receivables and Retail Receivables received directly by Navistar Financial, International or any such Dealer; provided that any such payments received by International shall be furnished deposited forthwith by International into the applicable retail suspense account of Navistar Financial (each such suspense account and each suspense account referred to in the next succeeding sentence, a “Suspense Account”) maintained by a Collection Bank. Navistar Financial shall instruct each Collection Bank to transfer by wire transfer or similar electronic means, on the same business day as received, all amounts deposited by wire transfer or similar electronic means into the wholesale or retail Collection Account maintained by such Collection Bank pursuant to this Section into a special purpose account of Navistar Financial maintained at the Concentration Bank (the “Proceeds Allocation Account”); provided that, if such Collection Bank receives any such amounts on a day that is not a business day, or too late on a business day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall instruct each Collection Bank (x) to deposit all cash, checks, drafts and other instruments or items for the payment of money paid into the wholesale or retail Lock-box (if any) maintained by such Collection Bank pursuant to this Section forthwith in the wholesale or retail Suspense Account of Navistar Financial, as appropriate, maintained by such Collection Bank (except that such Collection Bank may deal with items which are postdated, improperly endorsed or otherwise irregular in accordance with such Collection Bank’s usual procedures) and (y) to transfer by wire transfer or similar electronic means all cash, checks, drafts and other instruments or items deposited into any Suspense Account maintained by such Collection Bank to the Proceeds Allocation Account on the same business day as such items clear in accordance with such Collection Bank’s customary clearing schedule; provided that, if any such items so clear too late on a business day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall not deposit or, except as set forth above in this subsection (a), cause to be deposited any amount in any Proceeds Deposit Account. The Trustee is hereby directed to instruct the Concentration Bank to follow the instructions of Navistar Financial given pursuant to this subsection (a). Navistar Financial shall instruct the Concentration Bank to retain all amounts transferred into the Proceeds Allocation Account in such account until they have been identified by Navistar Financial, either by actual identification or, so long as no Notice of Acceleration is in effect, by reasonable estimation in accordance with Navistar Financial’s usual procedures, as (i) Sold Collections, (ii) Retained Collections or (iii) other amounts. Upon such identification, (w) Navistar Financial shall provide prompt notice thereof to the Concentration Bank and the Trustee, (x) Retained Collections shall be transferred forthwith to a Proceeds Deposit Account, (y) Sold Collections shall be transferred in accordance with the terms under which the underlying Receivables were sold and (z) other amounts shall be transferred in accordance with Navistar Financial’s usual procedures. Consistent with Such identification by Navistar Financial shall be effected as soon as reasonably practicable. Navistar Financial shall not permit any Proceeds to remain in any account described in this subsection (a) (other than any such account that is a UCC Deposit Account) more than 10 days after receipt of such Proceeds by a Collection Bank. If, notwithstanding the foregoing, the Master Servicer may Trustee or any Purchaser shall in its discretion good faith challenge Navistar Financial’s identification of any item of payment or shall in good faith challenge any of Navistar Financial’s formulas for allocating items of payment, Deloitte & Touche LLP (1) waive or such other accounting firm as shall be acceptable to Navistar Financial, such Purchaser and the Trustee), at Navistar Financial’s expense, shall determine the proper identification of such item of payment or the propriety of such allocation formula. If any assumption feessuch determination shall result in additional amounts being transferable to a Proceeds Deposit Account with respect to any such item of payment, late payment charges, charges for checks returned for insufficient funds, prepayment feesNavistar Financial shall promptly so transfer such additional amounts and, if anyit has been determined that Navistar Financial’s formula for allocation was in error, the proper allocation formula shall thereafter be applied to allocate items of payment, subject to any subsequent revision as provided herein. No such determination shall prevent Navistar Financial, the Trustee or other fees that may be collected in the ordinary course any Purchaser from litigating a claim to a greater portion of servicing the Mortgage Loanssuch funds. Navistar Financial will use all reasonable efforts to cause International and each Account Debtor, (2) if a Mortgagor is in default or appears about Dealer, Proceeds Account Bank and Collection Bank to be in default because of a Mortgagor's financial condition, arrange comply with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal foregoing procedures and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Actinstructions; provided, however, provided that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] permit any waiver, modification or variance of a Mortgage Loan that would (1) change the Note Rate, (2) forgive the payment failure of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date them so to comply shall not constitute a breach of the Mortgage Loan beyond _______ 20___, in any case except to the extent required under the Relief Act. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at originationthis subsection.

Collection Procedures. The Master Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to mortgage loans Home Loans in its servicing portfolio that are comparable to the Mortgage Home Loans. A summary The Servicer shall not amend or modify these procedures, policies and practices with respect to the Home Loans (other than as required by applicable laws and regulations) without the prior consent of the Note Insurer and the Master Servicer's collection procedures is attached hereto as Exhibit D. A written , and a copy of any such amendment or modification shall be furnished to the Indenture Trustee. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, or other fees that may be collected in the ordinary course of servicing the Mortgage Home Loans, (2) if a Mortgagor an Obligor is in default or appears about to be in default because of a Mortgagoran Obligor's financial condition, arrange with the Mortgagor Obligor a schedule for the payment of delinquent payments due on the related Mortgage Home Loan or (3) modify payments of monthly principal and interest on any Mortgage Home Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans Home Loans subject to the Relief Act; providedPROVIDED, howeverHOWEVER, that the Master Servicer shall not, [without the prior written consent of the Bond Note Insurer,] , permit any waiver, modification or variance of a Mortgage Home Loan that would (1) change the Note Rate, (2) forgive the payment of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date of the Mortgage Loan beyond _______ 20___, in any case except to the extent required unless permitted under the Relief ActSection 2.04. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Home Loan unless such Mortgage Home Loan is prepaid in full. No partial release of a Mortgage Home Loan shall be made if it would cause the current Combined Loan-to-Value Ratio of the Mortgage Home Loan (taking into account the partial release) to be higher than the original Combined Loan-to-Value Ratio of the Mortgage Loan at originationHome Loan.

Collection Procedures. The Master Servicer (a) On or before the date hereof, Navistar Financial will establish a system of operations, accounts and instructions to the Concentration Bank, Collection Banks, Proceeds Account Banks, International, Dealers and Account Debtors, as provided in this Section. Navistar Financial shall, subject to the provisions of Section 4.13, (i) instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable (other than any Navistar Financial Receivable referred to in clause (ii) below) to make such payments directly to a separate special purpose account of Navistar Financial maintained at a Proceeds Account Bank and containing only Proceeds (a “Proceeds Deposit Account”) and (ii) instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable referred to in clause (d) of the definition of Navistar Financial Receivables to make such payments (except to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time that any Permitted Receivables Sale Agreement may require otherwise with respect to mortgage loans Receivables sold thereunder) to lock-boxes (the “Lock-boxes”) (in its servicing portfolio that the case of any payments in the form of cash, checks, drafts and other instruments or items for the payment of money) and accounts (the “Collection Accounts”) (in the case of any payments made by wire transfer or similar electronic means) maintained by Navistar Financial with the Collection Banks. Payments on account of Wholesale Receivables shall be paid to Lock-boxes and Collection Accounts which are comparable separate from those to which payments on account of Retail Receivables are made. Navistar Financial shall, and shall request International and each Dealer to, pay forthwith into Lock-boxes and Collection Accounts, as appropriate, in the Mortgage Loans. A summary of form received (or, in the Master Servicer's collection procedures is attached hereto as Exhibit D. A written copy case of any such amendment payment received by wire transfer or modification similar electronic means, by such means), all payments on account of Wholesale Receivables and Retail Receivables received directly by Navistar Financial, International or any such Dealer; provided that any such payments received by International shall be furnished deposited forthwith by International into the applicable retail suspense account of Navistar Financial (each such suspense account and each suspense account referred to in the next succeeding sentence, a “Suspense Account”) maintained by a Collection Bank. Navistar Financial shall instruct each Collection Bank to transfer by wire transfer or similar electronic means, on the same Business Day as received, all amounts deposited by wire transfer or similar electronic means into the wholesale or retail Collection Account maintained by such Collection Bank pursuant to this Section into a special purpose account of Navistar Financial maintained at the Concentration Bank (the “Proceeds Allocation Account”); provided that, if such Collection Bank receives any such amounts on a day that is not a Business Day, or too late on a Business Day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding Business Day. Navistar Financial shall instruct each Collection Bank (x) to deposit all cash, checks, drafts and other instruments or items for the payment of money paid into the wholesale or retail Lock-box (if any) maintained by such Collection Bank pursuant to this Section forthwith in the wholesale or retail Suspense Account of Navistar Financial, as appropriate, maintained by such Collection Bank (except that such Collection Bank may deal with items which are postdated, improperly endorsed or otherwise irregular in accordance with such Collection Bank’s usual procedures) and (y) to transfer by wire transfer or similar electronic means all cash, checks, drafts and other instruments or items deposited into any Suspense Account maintained by such Collection Bank to the Proceeds Allocation Account on the same Business Day as such items clear in accordance with such Collection Bank’s customary clearing schedule; provided that, if any such items so clear too late on a Business Day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding Business Day. Navistar Financial shall not deposit or, except as set forth in this subsection (a), cause to be deposited any amount in any Proceeds Deposit Account. The Trustee is hereby directed to instruct the Concentration Bank to follow the instructions of Navistar Financial given pursuant to this subsection (a). Navistar Financial shall instruct the Concentration Bank to retain all amounts transferred into the Proceeds Allocation Account in such account until they have been identified by Navistar Financial, either by actual identification or, so long as no Notice of Acceleration is in effect, by reasonable estimation in accordance with Navistar Financial’s usual procedures, as (i) Sold Collections, (ii) Retained Collections or (iii) other amounts. Upon such identification, (w) Navistar Financial shall provide prompt notice thereof to the Concentration Bank and the Trustee, (x) Retained Collections shall be transferred forthwith to a Proceeds Deposit Account, (y) Sold Collections shall be transferred in accordance with the terms under which the underlying Receivables were sold and (z) other amounts shall be transferred in accordance with Navistar Financial’s usual procedures. Consistent with Such identification by Navistar Financial shall be effected as soon as reasonably practicable. Navistar Financial shall not permit any Proceeds to remain in any Deposit Account (other than any such account that is a UCC Deposit Account) more than 10 days after receipt of such Proceeds by a Collection Bank. If, notwithstanding the foregoing, the Master Servicer may Trustee or any Purchaser shall in its discretion good faith challenge Navistar Financial’s identification of any item of payment or shall in good faith challenge any of Navistar Financial’s formulas for allocating items of payment, KPMG (1) waive or such other accounting firm as shall be acceptable to Navistar Financial, such Purchaser and the Trustee), at Navistar Financial’s expense, shall determine the proper identification of such item of payment or the propriety of such allocation formula. If any assumption feessuch determination shall result in additional amounts being transferable to a Proceeds Deposit Account with respect to any such item of payment, late payment charges, charges for checks returned for insufficient funds, prepayment feesNavistar Financial shall promptly so transfer such additional amounts and, if anyit has been determined that Navistar Financial’s formula for allocation was in error, the proper allocation formula shall thereafter be applied to allocate items of payment, subject to any subsequent revision as provided herein. No such determination shall prevent Navistar Financial, the Trustee or other fees that may be collected in the ordinary course any Purchaser from litigating a claim to a greater portion of servicing the Mortgage Loanssuch funds. Navistar Financial will use all reasonable efforts to cause International and each Account Debtor, (2) if a Mortgagor is in default or appears about Dealer, Proceeds Account Bank and Collection Bank to be in default because of a Mortgagor's financial condition, arrange comply with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal foregoing procedures and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Actinstructions; provided, however, provided that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] permit any waiver, modification or variance of a Mortgage Loan that would (1) change the Note Rate, (2) forgive the payment failure of any principal or interest, of them so to comply shall not constitute a breach of this subsection (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date of the Mortgage Loan beyond _______ 20___, in any case except to the extent required under the Relief Act. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at originationa).

Collection Procedures. The Master Servicer shall, to the extent such ---------------------- procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to mortgage loans Home Loans in its servicing portfolio that are comparable to the Mortgage Home Loans. A summary The Servicer shall not amend or modify these procedures, policies and practices with respect to the Home Loans (other than as required by applicable laws and regulations) without the prior consent of the Note Insurer and the Master Servicer's collection procedures is attached hereto as Exhibit D. A written , and a copy of any such amendment or modification shall be furnished to the Indenture Trustee. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, or other fees that may be collected in the ordinary course of servicing the Mortgage Home Loans, (2) if a Mortgagor an Obligor is in default or appears about to be in default because of a Mortgagoran Obligor's financial condition, arrange with the Mortgagor Obligor a schedule for the payment of delinquent payments due on the related Mortgage Home Loan or (3) modify payments of monthly principal and interest on any Mortgage Home Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans Home Loans subject to the Relief Act; provided, however, that the Master Servicer shall not, [without the prior written consent of the Bond Note Insurer,] , permit any waiver, modification or variance of a Mortgage Home Loan that would (1) change the Note Rate, (2) forgive the payment of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date of the Mortgage Loan beyond _______ 20___, in any case except to the extent required unless permitted under the Relief ActSection 2.04. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Home Loan unless such Mortgage Home Loan is prepaid in full. No partial release of a Mortgage Home Loan shall be made if it would cause the current Combined Loan-to-Value Ratio of the Mortgage Home Loan (taking into account the partial release) to be higher than the original Combined Loan-to-Value Ratio of the Mortgage Loan at originationHome Loan.

Collection Procedures. The Master Servicer (a) On or before the date hereof, Navistar Financial will establish a system of operations, accounts and instructions to the Concentration Bank, Collection Banks, Proceeds Account Banks, International, Dealers and Account Debtors, as provided in this Section. Navistar Financial shall, subject to the provisions of Section 4.13, (i) instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable (other than any Navistar Financial Receivable referred to in clause (ii) below) to make such payments directly to a separate special purpose account of Navistar Financial maintained at a Proceeds Account Bank and containing only Proceeds (a “Proceeds Deposit Account”) and (ii) subject to the provisions of Section 4.13, instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable referred to in clause (d) of the definition of Navistar Financial Receivables to make such payments (except to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time that any Permitted Receivables Sale Agreement may require otherwise with respect to mortgage loans Receivables sold thereunder) to lock-boxes (the “Lock-boxes”) (in its servicing portfolio that are comparable to the Mortgage Loans. A summary of the Master Servicer's collection procedures is attached hereto as Exhibit D. A written copy case of any such amendment or modification shall be furnished to the Trustee. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, or other fees that may be collected payments in the ordinary course form of servicing the Mortgage Loanscash, (2) if a Mortgagor is in default checks, drafts and other instruments or appears about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule items for the payment of delinquent money) and accounts (the “Collection Accounts”) (in the case of any payments due made by wire transfer or similar electronic means) maintained by Navistar Financial with the Collection Banks. Payments on account of Wholesale Receivables shall be paid to Lock-boxes and Collection Accounts which are separate from those to which payments on account of Retail Receivables are made. Navistar Financial shall, and shall request International and each Dealer to, pay forthwith into Lock-boxes and Collection Accounts, as appropriate, in the form received (or, in the case of any such payment received by wire transfer or similar electronic means, by such means), all payments on account of Wholesale Receivables and Retail Receivables received directly by Navistar Financial, International or any such Dealer; provided that any such payments received by International shall be deposited forthwith by International into the applicable retail suspense account of Navistar Financial (each such suspense account and each suspense account referred to in the next succeeding sentence, a “Suspense Account”) maintained by a Collection Bank. Navistar Financial shall instruct each Collection Bank to transfer by wire transfer or similar electronic means, on the related Mortgage Loan same business day as received, all amounts deposited by wire transfer or (3) modify payments similar electronic means into the wholesale or retail Collection Account maintained by such Collection Bank pursuant to this Section into a special purpose account of monthly principal and interest on any Mortgage Loan becoming subject to Navistar Financial maintained at the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended Concentration Bank (the "Relief Act"“Proceeds Allocation Account”); provided that, if such Collection Bank receives any such amounts on a day that is not a business day, or too late on a business day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the Master Servicer's general policies next succeeding business day. Navistar Financial shall instruct each Collection Bank (x) to deposit all cash, checks, drafts and other instruments or items for comparable mortgage loans subject to the Relief Act; provided, however, that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] permit any waiver, modification or variance of a Mortgage Loan that would (1) change the Note Rate, (2) forgive the payment of money paid into the wholesale or retail Lock-box (if any) maintained by such Collection Bank pursuant to this Section forthwith in the wholesale or retail Suspense Account of Navistar Financial, as appropriate, maintained by such Collection Bank (except that such Collection Bank may deal with items which are postdated, improperly endorsed or otherwise irregular in accordance with such Collection Bank’s usual procedures) and (y) to transfer by wire transfer or similar electronic means all cash, checks, drafts and other instruments or items deposited into any principal or interest, (3) impair the priority of the lien represented Suspense Account maintained by the related Mortgage or (4) extend the final maturity date of the Mortgage Loan beyond _______ 20___, in any case except such Collection Bank to the extent required under Proceeds Allocation Account on the Relief Act. The Master Servicer will not consent same business day as such items clear in accordance with such Collection Bank’s customary clearing schedule; provided that, if any such items so clear too late on a business day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at origination.next succeeding business

Collection Procedures. The Master Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans. A summary The Servicer shall not materially amend or modify these procedures, policies and practices with respect to the Mortgage Loans (other than as required by applicable laws and regulations) without the prior consent of the Master Servicer's collection procedures is attached hereto as Exhibit D. A written Note Insurer, and a copy of any such amendment or modification shall be furnished to the TrusteeIndenture Trustee and the Note Insurer. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (2) if a Mortgagor is in default or appears about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Act; provided, however, that the Master Servicer shall not, [without the prior written consent of the Bond Note Insurer,] , permit any waiver, modification or variance of a Mortgage Loan that which would (1) change the Note Mortgage Interest Rate, (2) forgive the payment of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage, (4) the Servicer will not, without the Note Insurer's consent, (A) extend any Mortgage Loan more than once in a calendar year or (4B) grant more than three extensions with respect to any Mortgage Loan or (5) extend the final maturity date of the Mortgage Loan beyond _______ 20___December 25, 2030, in any case except to the extent required under the Relief ActAct unless (i) in its judgment, a material default on the Mortgage Loan has occurred or a payment default is reasonably foreseeable and (ii) in its judgment, such modification, waiver or amendment is reasonably likely to produce a greater recovery with respect to the Mortgage Loan on a present value basis than would liquidation; and provided further, that the Servicer shall not waive any Prepayment Charge provision included in a Mortgage Note unless the Servicer determines, in its best reasonable judgment, that the related Mortgagor will be in imminent default of all future payments of principal and interest under the terms of the related Mortgage Note. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio or the Combined Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio or the Combined Loan-to-Value Ratio of the Mortgage Loan at origination.

Collection Procedures. The Master Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans. A summary of the Master Servicer's collection procedures as of the Closing Date is attached hereto as Exhibit D. A written copy of any such amendment or modification shall be furnished to the Trustee. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment feescharges (other than prepayment premiums and penalties), if any, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (2) if a Mortgagor is in default or appears about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Act; provided. Notwithstanding the foregoing, howeverin the event that any Mortgage Loan is in default or, that in the Master Servicer shall not, [without the prior written consent judgment of the Bond Insurer,] permit Servicer, such default is reasonably foreseeable, the Servicer, consistent with the servicing standard set forth in Section 2.01, may waive, modify or vary any waiver, modification or variance term of a such Mortgage Loan (including modifications that would (1) change the Note Mortgage Interest Rate, (2) forgive the payment of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage interest or (4) extend the final maturity date of such Mortgage Loan), accept payment from the related Mortgagor of an amount less than the unpaid principal balance in final satisfaction of such Mortgage Loan beyond _______ 20___Loan, in any case except to the extent required under the Relief Act. The Master Servicer will not or consent to the placement postponement of a deed of trust such compliance with any such term or mortgage, as applicable, on otherwise grant indulgence to any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid Mortgagor if in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at origination.the

Collection Procedures. The Master Servicer (a) On or before the date hereof, Navistar Financial will establish a system of operations, accounts and instructions to the Concentration Bank, Collection Banks, Proceeds Account Banks, International, Dealers and Account Debtors, as provided in this Section. Navistar Financial shall, subject to the provisions of Section 4.13, (i) instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable (other than any Navistar Financial Receivable referred to in clause (ii) below) to make such payments directly to a separate special purpose account of Navistar Financial maintained at a Proceeds Account Bank and containing only Proceeds (a “Proceeds Deposit Account”) and (ii) subject to the provisions of Section 4.13, instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable referred to in clause (d) of the definition of Navistar Financial Receivables to make such payments (except to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time mat any Permitted Receivables Sale Agreement may require otherwise with respect to mortgage loans Receivables sold thereunder) to lock-boxes (the “Lock-boxes”) (in its servicing portfolio that the case of any payments in the form of cash, checks, drafts and other instruments or items for the payment of money) and accounts (the “Collection Accounts”) (in the case of any payments made by wire transfer or similar electronic means) maintained by Navistar Financial with the Collection Banks. Payments on account of Wholesale Receivables shall be paid to Lock-boxes and Collection Accounts which are comparable separate from those to which payments on account of Retail Receivables are made. Navistar Financial shall, and shall request International and each Dealer to, pay forthwith into Lock-boxes and Collection Accounts, as appropriate, in the Mortgage Loans. A summary of form received (or, in the Master Servicer's collection procedures is attached hereto as Exhibit D. A written copy case of any such amendment payment received by wire transfer or modification similar electronic means, by such means), all payments on account of Wholesale Receivables and Retail Receivables received directly by Navistar Financial, International or any such Dealer; provided that any such payments received by International shall be furnished deposited forthwith by International into the applicable retail suspense account of Navistar Financial (each such suspense account and each suspense account referred to in the next succeeding sentence, a “Suspense Account”) maintained by a Collection Bank. Navistar Financial shall instruct each Collection Bank to transfer by wire transfer or similar electronic means, on the same business day as received, all amounts deposited by wire transfer or similar electronic means into the wholesale or retail Collection Account maintained by such Collection Bank pursuant to this Section into a special purpose account of Navistar Financial maintained at the Concentration Bank (the “Proceeds Allocation Account”); provided that, if such Collection Bank receives any such amounts on a day that is not a business day, or too late on a business day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall instruct each Collection Bank (x) to deposit all cash, checks, drafts and other instruments or items for the payment of money paid into the wholesale or retail Lock-box (if any) maintained by such Collection Bank pursuant to this Section forthwith in the wholesale or retail Suspense Account of Navistar Financial, as appropriate, maintained by such Collection Bank (except that such Collection Bank may deal with items which are postdated, improperly endorsed or otherwise irregular in accordance with such Collection Bank’s usual procedures) and (y) to transfer by wire transfer or similar electronic means all cash, checks, drafts and other instruments or items deposited into any Suspense Account maintained by such Collection Bank to the Proceeds Allocation Account on the same business day as such items clear in accordance with such Collection Bank’s customary clearing schedule; provided that, if any such items so clear too late on a business day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall not deposit or, except as set forth above in this subsection (a), cause to be deposited any amount in any Proceeds Deposit Account. The Trustee is hereby directed to instruct the Concentration Bank to follow the instructions of Navistar Financial given pursuant to this subsection (a). Navistar Financial shall instruct the Concentration Bank to retain all amounts transferred into the Proceeds Allocation Account in such account until they have been identified by Navistar Financial, either by actual identification or, so long as no Notice of Acceleration is in effect, by reasonable estimation in accordance with Navistar Financial’s usual procedures, as (i) Sold Collections, (ii) Retained Collections or (iii) other amounts. Upon such identification, (w) Navistar Financial shall provide prompt notice thereof to the Concentration Bank and the Trustee, (x) Retained Collections shall be transferred forthwith to a Proceeds Deposit Account, (y) Sold Collections shall be transferred in accordance with the terms under which the underlying Receivables were sold and (z) other amounts shall be transferred in accordance with Navistar Financial’s usual procedures. Consistent with Such identification by Navistar Financial shall be effected as soon as reasonably practicable. Navistar Financial shall not permit any Proceeds to remain in any account described in this subsection (a) (other than any such account that is a UCC Deposit Account) more than 10 days after receipt of such Proceeds by a Collection Bank. If, notwithstanding the foregoing, the Master Servicer may Trustee or any Purchaser shall in its discretion good faith challenge Navistar Financial’s identification of any item of payment or shall in good faith challenge any of Navistar Financial’s formulas for allocating items of payment, Deloitte & Touche LLP (1) waive or such other accounting firm as shall be acceptable to Navistar Financial, such Purchaser and the Trustee), at Navistar Financial’s expense, shall determine the proper identification of such item of payment or the propriety of such allocation formula. If any assumption feessuch determination shall result in additional amounts being transferable to a Proceeds Deposit Account with respect to any such item of payment, late payment charges, charges for checks returned for insufficient funds, prepayment feesNavistar Financial shall promptly so transfer such additional amounts and, if anyit has been determined that Navistar Financial’s formula for allocation was in error, the proper allocation formula shall thereafter be applied to allocate items of payment, subject to any subsequent revision as provided herein. No such determination shall prevent Navistar Financial, the Trustee or other fees that may be collected in the ordinary course any Purchaser from litigating a claim to a greater portion of servicing the Mortgage Loanssuch funds. Navistar Financial will use all reasonable efforts to cause International and each Account Debtor, (2) if a Mortgagor is in default or appears about Dealer, Proceeds Account Bank and Collection Bank to be in default because of a Mortgagor's financial condition, arrange comply with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal foregoing procedures and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Actinstructions; provided, however, provided that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] permit any waiver, modification or variance of a Mortgage Loan that would (1) change the Note Rate, (2) forgive the payment failure of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date them so to comply shall not constitute a breach of the Mortgage Loan beyond _______ 20___, in any case except to the extent required under the Relief Act. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at originationthis subsection.

Collection Procedures. The Master Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans. A summary of the Master Servicer's collection procedures is attached hereto as Exhibit D. A written The Servicer shall not amend or modify these procedures, policies and practices with respect to the Mortgage Loans (other than as required by applicable laws and regulations) without the prior consent of the Bond Insurer, and a copy of any such amendment or modification shall be furnished to the Indenture Trustee. Consistent with the foregoing, the Master Servicer may in its discretion (1) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (2) if a Mortgagor is in default or appears about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan or (3) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (the "Relief Act"), in accordance with the Master Servicer's general policies for comparable mortgage loans subject to the Relief Act; provided, however, that the Master Servicer shall not, [without the prior written consent of the Bond Insurer,] , permit any waiver, modification or variance of a Mortgage Loan that which would (1) change the Note Mortgage Interest Rate, (2) forgive the payment of any principal or interest, (3) impair the priority of the lien represented by the related Mortgage or (4) extend the final maturity date of the Mortgage Loan beyond _______ 20___March 2028, in any case except to the extent required under the Relief Act. The Master Servicer will not consent to the placement of a deed of trust or mortgage, as applicable, on any Mortgaged Property that has a priority equal to or higher than the lien securing the related Mortgage Loan unless such Mortgage Loan is prepaid in full. No partial release of a Mortgage Loan shall be made if it would cause the Loan-to-Value Ratio of the Mortgage Loan (taking into account the partial release) to be higher than the Loan-to-Value Ratio of the Mortgage Loan at origination.