Common use of Physical Damage Insurance; Other Insurance Clause in Contracts

Physical Damage Insurance; Other Insurance. (a) The Servicer, in accordance with its customary servicing procedures, shall require (i) that each Obligor shall maintain insurance covering the Financed Vehicle insuring against loss and damage due to fire, theft, transportation, collision and other risks generally covered by comprehensive and collision coverage naming Asta Funding and its successors and assigns as an additional insured and permits the Holder of such Receivable to obtain physical damage insurance at the expense of the Obligor if the Obligor fails to do so, (ii) maintain the VSI Insurance Policy in full force and effect with respect to all Receivables for the life of the Trust, or, at the Seller's option, replace such insurance with a policy from another insurer having a claims paying rating not lower than the then current claims paying rating of the then current VSI insurer with substantially similar loss coverage and covering all Receivables and (iii) each Receivable that finances the cost of premiums for any Insurance Policy is covered by an Insurance Policy naming the respective Dealer or Asta Funding as policyholder (creditor) or creditor's assignee, respectively.