Common use of Purchase of Receivables Upon Breach of Covenant Clause in Contracts

Purchase of Receivables Upon Breach of Covenant. The ----------------------------------------------- Servicer or the Indenture Trustee shall inform the other parties promptly, in writing, upon the discovery of any breach by the Servicer of its obligations under Section 4.5 or 4.6; provided, that the Indenture Trustee shall have no duty to inquire concerning, or to investigate, the breach of any of such obligations. Unless the breach shall have been cured by the last day of the Collection Period following the Collection Period during which the Servicer becomes aware of, or receives written notice of such breach, the Servicer shall purchase as of such day (or, at the Servicer's option, as of the last day of the month in which such breach was discovered) any Receivable materially and adversely affected by such breach and any Receivable in which the interest of the Noteholders is materially and adversely affected by such breach (unless such Receivable is otherwise being purchased pursuant to Section 3.2 or 11.1). In consideration of the purchase of such Receivable, the Servicer shall remit the Purchase Amount with respect to such Receivable in the manner specified in Section 5.3. The sole remedy of the Indenture Trustee or the Noteholders with respect to a breach pursuant to Section 4.5 or 4.6 shall be to require the Servicer to purchase Receivables pursuant to this Section 4.7.

Purchase of Receivables Upon Breach of Covenant. The ----------------------------------------------- Servicer Upon discovery by the Servicer, the Custodian or the Indenture Trustee shall inform the other parties promptly, in writing, upon the discovery Agent of any breach by the Servicer of its obligations under Section 4.5 or 4.6; provided, that the Indenture Trustee shall have no duty to inquire concerning, or to investigate, the (a) a breach of any of the covenants, representations or warranties set forth in Sections 8.5 or 8.6(a) or (b) that has a material adverse effect on the interests of any Secured Party in any Transferred Receivable, or (b) a failure to obtain a Lien Certificate within 180 days as described in Section 8.16, the party discovering such obligations. Unless the breach shall have been cured by give prompt written notice to the last day others and the Collateral Agent; provided, however, that the failure to give any such notice shall not affect any obligation of the Collection Period following Servicer under this Section 8.7. As of the Collection Period during which the Servicer becomes aware of, or receives written notice of such breach, the Servicer shall purchase as of such day second Accounting Date (or, at the Servicer's optionelection, as the first Accounting Date) following its discovery or receipt of notice of any such breach, the last day of the month in which Servicer shall, unless such breach was discovered) any Receivable materially and adversely shall have been cured in all material respects, purchase from the Borrower the Transferred Receivables affected by such breach and any Receivable in which and, on or before the interest of the Noteholders is materially and adversely affected by Determination Date following such breach (unless such Receivable is otherwise being purchased pursuant to Section 3.2 or 11.1). In consideration of the purchase of such ReceivableAccounting Date, the Servicer shall remit pay the related Purchase Amount with respect to such Receivable in the manner specified in Section 5.3. The sole remedy of the Indenture Trustee or the Noteholders with respect to a breach Collateral Agent pursuant to Section 4.5 or 4.6 shall be to require 9.4. The obligation of the Servicer to purchase Receivables pursuant any Transferred Receivable with respect to which such a breach has occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy against the Servicer for such breach available to the Borrower, the Investors, the Agent or the Collateral Agent on behalf of the Secured Parties. The Agent shall not be under any duty or obligation to investigate the occurrence of a breach of a covenant in accordance with this Section 4.78.7.