Dealer Concentrations Clause Samples
The Dealer Concentrations clause sets limits on the amount of exposure or business that can be conducted with any single dealer or group of related dealers. In practice, this clause may specify maximum percentages of total transactions, credit exposure, or portfolio holdings that can be allocated to one dealer, ensuring that risk is not overly concentrated. Its core function is to mitigate counterparty risk by preventing excessive reliance on a single dealer, thereby promoting diversification and financial stability.
Dealer Concentrations. So long as this Series 2000-B shall be outstanding, on the last day of each Collection Period, the Servicer shall determine if the aggregate amount of Principal Receivables due from any Dealer or group of affiliated Dealers on such date is greater than 1.5% of the Pool Balance on such date. The Servicer shall promptly provide the Trustee a report setting forth the basis for such determination. The Trustee upon request from any Rating Agency will make such report available to such Rating Agency.
Dealer Concentrations. (a) On the last day of each Collection Period, the Servicer shall, for purposes of determining the Required Participation Percentage for any Series, determine (a) if the aggregate amount of Principal Receivables due from either AutoNation, Inc. and its affiliates or United Auto Group, Inc. and its affiliates at the close of business on such last day is greater than 4% of the Pool Balance on such last day and (b) if the aggregate amount of Principal Receivables due from any other Dealer or group of affiliated Dealers at the close of business on such last day is greater than 1.5% of the Pool Balance on such last day. The Servicer shall promptly provide the Trust and the Trustee a report setting forth the basis for such determination. The Trustee upon request from any Rating Agency will make such report available to such Rating Agency.
(b) On the last day of each Collection Period, the Servicer shall, for purposes of determining the Dealer Overconcentrations that are used to calculate the "Incremental Overcollateralization Amount" (as defined in the related Indenture Supplement) for any Series, determine (a) if the aggregate amount of Principal Receivables due from either AutoNation, Inc. and its affiliates or United Auto Group, Inc. and its affiliates at the close of business on such last day is greater than 4% of the Pool Balance on such last day and (b) if the aggregate amount of Principal Receivables due from any other Dealer or group of affiliated Dealers at the close of business on such last day is greater than 2% of the Pool Balance on such last day. The Servicer shall promptly provide the Trust and the Trustee a report setting forth the basis for such determination. The Trustee upon request from any Rating Agency will make such report available to such Rating Agency.
Dealer Concentrations. So long as this Series 2002-CC shall be outstanding, on the last day of each Collection Period, the Servicer shall, for purposes of determining the Required Participation Percentage, determine (a) if the aggregate amount of Principal Receivables due from either AutoNation, Inc. and its affiliates or United Auto Group, Inc. and its affiliates at the close of business on such last day is greater than 4% of the Pool Balance on such last day and (b) if the aggregate amount of Principal Receivables due from any other Dealer or group of affiliated Dealers at the close of business on such last day is greater than 1.5% of the Pool Balance on such last day. The Servicer shall promptly provide the Trustee and the Indenture Trustee a report setting forth the basis for such determination. The Trustee upon request from any Rating Agency will make such report available to such Rating Agency.
Dealer Concentrations. On any date of determination, the sum of, for each Dealer, the amount of by which the aggregate Principal Balances of all Receivables acquired from such Dealer exceeds 10% of the aggregate Principal Balance of all Receivables.