Common use of Defaulted Accounts Clause in Contracts

Defaulted Accounts. From and after the day on which an Account becomes a Defaulted Account and while it continues as a Defaulted Account and has not been removed pursuant to Section 2.7, all Receivables balances owing under each such Defaulted Account shall be included in the Defaulted Amount and excluded in the calculation of the Pool Balance. Each existing Ownership Interest shall, however, continue to constitute an undivided co-ownership interest in all amounts owing as Receivables under each such Account while it is a Defaulted Account and all payments received as Recoveries in respect of amounts owing under each such Account shall be applied, without distinction, as Collections hereunder.

Defaulted Accounts. From and after the day on which an Account becomes a Defaulted Account and while it continues as a Defaulted Account and has not been removed pursuant to Section 2.72.7 or purged pursuant to Section 2.11(b), all Receivables balances owing under each such Defaulted Account shall be included in the Defaulted Amount and excluded in the calculation of the Pool Balance. Each existing Ownership Interest shall, however, continue to constitute an undivided co-ownership interest in all amounts owing as Receivables under each such Account while it is a Defaulted Account and all payments received as Recoveries in respect of amounts owing under each such Account shall be applied, without distinction, as Collections hereunder.