Loan Subvention Program Sample Clauses
A Loan Subvention Program clause outlines the terms under which a third party, often a seller or manufacturer, agrees to subsidize part of the interest payments on a borrower's loan. Typically, this clause specifies the duration and amount of the subvention, detailing how the subsidy is applied to reduce the effective interest rate for the borrower, such as covering a portion of monthly payments for a set period. The core function of this clause is to make financing more affordable for the borrower, thereby encouraging purchases or investments by lowering the initial cost burden.
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Loan Subvention Program. During the Initial Program Period and any Renewal Program Period (each defined below), USAA shall coordinate with TrueCar to market the Loan Subvention Program in accordance with the marketing obligations set forth in Exhibit A. For each Approved Sale (defined below) of a new or used vehicle during the initial Program Period, USAA Bank shall apply a [***] rate discount on a new and used vehicle purchase loans from 1-60 months and a [***] rate discount on new and used vehicle purchase loans from 61-72 months (each, a “Discounted USAA Auto Loan”). Subject to Section 2 of this Amendment #22, USAA Bank shall fund a portion of the rate discount for a Discounted USAA Auto Loan and TrueCar shall pay USAA Bank a reimbursement amount (“Reimbursement Amount”) for a Discounted USAA Auto Loan in accordance with Exhibit B. For purposes of this Amendment #22, a new vehicle is a vehicle with a model year 2012, 2013 or 2014 and all other model year vehicles will be classified as used vehicles. “Approved Sale” means the sale of a new or used vehicle purchased from the Dealer listed on the Certificate generated through the USAA Auto Program where a USAA Auto Loan is used to make the vehicle purchase.