Common use of Discount Option Clause in Contracts

Discount Option. (a) The Transferor may at its option (the "Discount Option"), at any time, upon not less than 20 Business Days prior written notice to the Servicer, the Trustee, the Interest Rate Cap Provider, the Collateral Interest Holder, and each Rating Agency, designate a percentage, which may be a fixed percentage or a variable percentage based on a formula (the "Discounted Percentage"), of the amount of Principal Receivables in Accounts designated in such notice to be treated on and after such designation, or for the period specified in such notice, as Finance Charge Receivables (it being understood and agreed that an increase in the Discount Percentage shall constitute a new exercise of the Discount Option); provided, however, that no such designation shall become effective -------- ------- on the date specified in such written notice unless the following conditions have been satisfied:

Discount Option. (a) The Transferor may at its option (the "Discount Option"), at any time, upon not less than 20 Business Days prior written notice to the Servicer, the Trustee, the Interest Rate Cap Provider, the Collateral Interest Holder, and each Rating Agency, designate a percentage, which may be a fixed percentage or a variable percentage based on a formula (the "Discounted Percentage"), of the amount of Principal Receivables in Accounts designated in such notice to be treated on and after such designation, or for the period specified in such notice, as Finance Charge Receivables (it being understood and agreed that an increase in the Discount Percentage shall constitute a new exercise of the Discount Option); provided, however, that no such designation shall become effective -------- ------- on the date specified in such written notice unless the following conditions have been satisfied:

Discount Option. (a) The Transferor may at its option (the "Discount Option"), at any time, upon not less than 20 Business Days prior written notice to the Servicer, the Trustee, the Interest Rate Cap Provider, the Collateral Interest Holder, and each Rating Agency, designate a percentage, which may be a fixed percentage or a variable percentage based on a formula (the "Discounted Percentage"), of the amount of Principal Receivables in Accounts designated in such notice to be treated on and after such designation, or for the period specified in such notice, as Finance Charge Receivables (it being understood and agreed that an increase in the Discount Percentage shall constitute a new exercise of the Discount Option); provided, however, that no such designation shall -------- ------- become effective -------- ------- on the date specified in such written notice unless the following conditions have been satisfied:

Discount Option. (a) The Transferor may at its option (the --------------- "Discount Option"), at any time, upon not less than 20 Business Days prior written notice to the Servicer, the Trustee, the Interest Rate Cap Provider, the Collateral Interest Holder, and each Rating Agency, designate a percentage, which may be a fixed percentage or a variable percentage based on a formula (the "Discounted Percentage"), of the amount of Principal Receivables in Accounts designated in such notice to be treated on and after such designation, or for the period specified in such notice, as Finance Charge Receivables (it being understood and agreed that an increase in the Discount Percentage shall constitute a new exercise of the Discount Option); provided, however, that no such designation shall become effective -------- ------- effective on the date specified in such written notice unless the following conditions have been satisfied:

Discount Option. (a) The Transferor may at its option (the "Discount Option"), at any time, upon not less than 20 Business Days prior written notice to the Servicer, the Trustee, the Interest Rate Cap Provider, the Collateral Interest Holder, and each Rating Agency, designate a percentage, which may be a fixed percentage or a variable percentage based on a formula (the "Discounted Percentage"), of the amount of Principal Receivables in Accounts designated in such notice to be treated on and after such designation, or for the period specified in such notice, as Finance Charge Receivables (it being understood and agreed that an increase in the Discount Percentage shall constitute a new exercise of the Discount Option); provided, however, that -------- ------- no such designation shall become effective -------- ------- on the date specified in such written notice unless the following conditions have been satisfied: