Realization Upon Contracts. The Servicer shall use its best efforts, consistent with the servicing standard specified in Section 3.01, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which no satisfactory arrangements can be made for collection of delinquent payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Financed Vehicle at public or private sale. In connection with such repossession or other conversion, the Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual for prudent holders of retail installment sales contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Financed Vehicle or any contract in default, may commence and prosecute any proceedings in respect of such Contract in its own name or, if the Servicer deems it necessary, in the name of the Issuer or the Indenture Trustee or on behalf of the Issuer or the Indenture Trustee. The Servicer's obligations under this Section are subject to the provision that, in the case of damage to a Financed Vehicle from an uninsured cause, the Servicer shall not be required to expend its own funds in repairing such motor vehicle unless it shall determine (i) that such restoration will increase the proceeds of liquidation of the related Contract, after reimbursement to itself for such expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable insurance policy or under an insurance reserve established by the Servicer. The Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a Defaulted Contract; provided, however, that it shall be entitled to reimbursement of such costs and expenses to the extent they constitute Liquidation Expenses or expenses recoverable under an applicable insurance policy. All Net Liquidation Proceeds and Net Insurance Proceeds shall be deposited directly in or credited to the Collection Account (without deposit in any intervening account) to the extent required by Section 4.02.
Realization Upon Contracts. On behalf of the Trust and the Indenture Trustee, the Servicer shall use reasonable efforts, in material accordance with the Collection Guidelines and prudent servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the Servicer shall have determined eventual payment in full is unlikely, as soon as practicable after the Servicer makes such determination. The Servicer may also sell or otherwise assign defaulted contracts for collection in an effort to realize upon such defaulted contracts. The Servicer shall follow such prudent practices and procedures as would be deemed prudent in the servicing of comparable receivables, consistent with the standard of care required by Section 4.01(b) which may include reasonable efforts to sell the Financed Vehicle at public or private sale. If the Backup Servicer has become the Servicer, it shall be entitled to receive Repossession Expenses in accordance with Section 5.02 hereof.
Realization Upon Contracts. 37 SECTION 3.04. INSURANCE.............................................................38 SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES................38 SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.................39 SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.........................41 SECTION 3.08. SERVICING COMPENSATION................................................41 SECTION 3.09. REPORTING BY THE SERVICER.............................................42 SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE.....................................44 SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT...............45 SECTION 3.12.
Realization Upon Contracts. 47 SECTION 3.04 Insurance............................................................................... 47 SECTION 3.05 Maintenance of Security Interests in Financed Vehicles.................................. 47 SECTION 3.06 Covenants, Representations and Warranties of Servicer................................... 48 SECTION 3.07 Purchase of Contracts Upon Breach By Servicer........................................... 50 SECTION 3.08
Realization Upon Contracts. On behalf of the Issuer and the Insurer, the Servicer shall use reasonable efforts, consistent with prudent servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the Servicer shall have determined eventual payment in full is unlikely. The Servicer shall follow such prudent practices and procedures as would be deemed prudent in the servicing of comparable receivables, which may include reasonable efforts to realize upon any Dealer Recourse and selling the Financed Vehicle at public or private sale. The foregoing shall be subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with the repair or the repossession of such Financed Vehicle unless it shall determine that there is a reasonable likelihood that such repair and/or repossession will increase the Liquidation Proceeds by an amount greater than the amount of such expenses. The Servicer agrees that within 45 days from the Closing Date or the related Funding Date, as applicable, it shall make such filings and effect such notices as are necessary under Section 9-324(b) and 9-324 (c) of the New York UCC (or comparable section of the UCC of any applicable state) to preserve the Issuer’s interest (or security interest, as the case may be) in any repossessed Financed Vehicles delivered for sale to Dealers.
Realization Upon Contracts. (a) Unless otherwise contemplated by the Collection Policy, in the event a Contract becomes or is reasonably anticipated to become a Defaulted Contract, the Servicer, itself or through the use of independent contractors or agents shall, consistent with the standard of care set forth in Section 2.18, repossess or otherwise convert the ownership of the Financed Vehicle securing such Contract. In accordance with the priority of payments set forth in Section 3.5(d)(x) of the Sale and Allocation Agreement, all costs and expenses incurred by the Servicer in connection with the repossession of the Financed Vehicles securing such Contracts shall be reimbursed to the Servicer from the Collection Account on the Payment Date relating to the Collection Period in which the Servicer delivered to the Indenture Trustee an itemized statement of such costs and expenses. Notwithstanding the foregoing and consistent with the terms of this Servicing Agreement, the Servicer shall not be obligated to repossess or take any action with respect to a Defaulted Contract if, in its reasonable judgment consistent with the servicing standards specified in Section 2.18, the Liquidation Proceeds are expected to be a negative number.
Realization Upon Contracts. (a) Consistent with the standards, policies and procedures required by this Agreement, the Program Administration Manual and the Servicing Procedures Manual, the Servicer shall use its best efforts to repossess (or otherwise comparably convert the ownership of) and liquidate any Vehicle securing a Contract with respect to which the Servicer has determined that payments thereunder are not likely to be resumed, as soon as is practicable after default on such Contract. The Servicer is authorized to follow such customary practices and procedures as it shall deem necessary or advisable, consistent with the standard of care required by Section 2.1 hereof, which practices and procedures may include reasonable efforts to realize upon any recourse to Dealers, selling the related Vehicle at public or private sale, the submission of claims under an Insurance Policy and other actions by the Servicer in order to realize upon such a Contract. The foregoing is subject to the provision that in any case in which the Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with any repair or towards the repossession of such Vehicle unless it shall determine in its discretion that such repair and/or repossession shall increase the proceeds of liquidation of the related Contract by an amount greater than the amount of such expenses. All amounts received upon liquidation of a Vehicle shall be remitted directly by the Servicer to the Lockbox Account without deposit into any intervening account as soon as practicable, but in no event later than the Business Day after receipt thereof. The Servicer shall be entitled to recover all reasonable expenses incurred by it in the course of repossessing and liquidating a Vehicle, which expenses shall be properly documented by the Servicer and reviewed by FC Consumer, but only out of the cash proceeds of such Vehicle, any deficiency obtained from the Obligor or any amounts received from the related Dealer, as set forth in Section 2.03(a)(iii) of the Paying Agent Agreement to the extent of such expenses. The Servicer shall recover such reasonable expenses based on the information contained in the Servicer's Certificate delivered on the related Determination Date. The Servicer shall pay on behalf of the Borrower any personal property taxes assessed on repossessed Vehicles; the Servicer shall be entitled to reimbursement of any such tax from Recoveries with respect to such Contract, as set forth in Section 2.03(a)(...
Realization Upon Contracts. 35 SECTION 3.04. INSURANCE ............................................. 36 SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES 36 SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER . 37 SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH OF COVENANT ......... 38 SECTION 3.08. SERVICING COMPENSATION ................................ 39 SECTION 3.09. REPORTING BY THE SERVICER ............................. 39 SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE ..................... 41 SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT 42 SECTION 3.12. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING CONTRACTS ............................ 42 SECTION 3.13. FIDELITY BOND ......................................... 42 SECTION 3.14. INDEMNIFICATION; THIRD PARTY CLAIMS ................... 43 SECTION 3.15. REPORTS TO SECURITYHOLDERS AND THE RATING AGENCIES .... 43 3 TABLE OF CONTENTS(CONT'D.)
Realization Upon Contracts. On behalf of the Trust, the Indenture Trustee, the Class A Insurer and the Backup Insurer, the Servicer shall use reasonable efforts, in accordance with the Collection Guidelines and prudent servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the Servicer shall have determined eventual payment in full is unlikely, as soon as practicable after the Servicer makes such determination. The Servicer shall follow such prudent practices and procedures as would be deemed prudent in the servicing of comparable receivables, consistent with the standard of care required by Section 4.01(b) which may include reasonable efforts to sell the Financed Vehicle at public or private sale. If the Backup Servicer has become the Servicer, it shall be entitled to receive Repossession Expenses in accordance with Section 5.02 hereof.
Realization Upon Contracts. The Backup Servicer shall have no responsibility for any deficiency collections or the obligation to realize upon any Dealer Recourse. The Indenture Trustee hereby agrees that it shall assume the obligations of the Servicer under Section 3.3 of the Sale and Servicing Agreement solely with respect to realization upon any Dealer Recourse.
