Common use of Realization upon Defaulted Contracts Clause in Contracts

Realization upon Defaulted Contracts. In accordance with the servicing procedures specified in the Servicing Agreement, the Servicer shall repossess, or otherwise comparably convert the ownership of, any Leased Vehicle securing a Defaulted Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to the Servicing Agreement. 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 responsible holders of lease contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Vehicle or any Defaulted Contract, may commence or prosecute any judicial proceedings in respect of such Contract in its own name, or if the Servicer deems it necessary, in the name of the Buyer or the Trustee, on behalf of the Buyer or on behalf of the Trustee. The Servicer's obligations under this Section are subject to the provision that, in the case of damage to a Leased Vehicle from an insured 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 Liquidation Proceeds 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. 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 Liquidation Proceeds (net of Liquidation Expenses) and Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited in the Master Collections Account to the extent required by the Servicing Agreement.

Realization upon Defaulted Contracts. In accordance The Master Servicer shall use its best efforts, consistent with the servicing procedures standard specified in the Servicing AgreementSection 4.01, the Servicer shall repossess, to repossess or otherwise comparably convert the ownership of, any Leased of the Financed Vehicle securing a Defaulted any Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Servicing AgreementFinanced Vehicle at public or private sale. In connection with such repossession or other conversion, the Master Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual for responsible prudent holders of lease motor vehicle retail installment sales contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Financed Vehicle or any Defaulted ContractContract in default, may commence or and prosecute any judicial proceedings in respect of such Contract in its own namename or, or if the Master Servicer deems it 44 50 necessary, in the name of the Buyer or the Trustee, on behalf of the Buyer Owner Trustee or on behalf of the Owner Trustee. The Master Servicer's obligations under this Section are subject to the provision that, in the case of damage to a Leased Financed Vehicle from an insured uninsured cause, the Master Servicer shall not be required to expend its own funds in repairing such motor vehicle Financed Vehicle unless it shall determine (i) that such restoration will increase the Liquidation Proceeds 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 policyInsurance Policy. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a Defaulted 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 policyInsurance Policy. All Net Liquidation Proceeds (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Master Collections Collection Account (without deposit in any intervening account) to the extent required by the Servicing AgreementSection 5.02.

Realization upon Defaulted Contracts. In accordance The Master Servicer shall use its best efforts, consistent with the servicing procedures standard specified in the Servicing AgreementSection 4.01, the Servicer shall repossess, to repossess or otherwise comparably convert the ownership of, any Leased of the Financed Vehicle securing a Defaulted any Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Servicing AgreementFinanced Vehicle at public or private sale. In connection with such repossession or other conversion, the Master Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual for responsible prudent holders of lease motor vehicle retail installment sales contracts and installment loans and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Financed Vehicle or any Defaulted ContractContract in default, may commence or and prosecute any judicial proceedings in respect of such Contract in its own namename or, or if the Master Servicer deems it 45 51 necessary, in the name of the Buyer or the Trustee, on behalf of the Buyer Owner Trustee or on behalf of the Owner Trustee. The Master Servicer's obligations under this Section are subject to the provision that, in the case of damage to a Leased Financed Vehicle from an insured uninsured cause, the Master Servicer shall not be required to expend its own funds in repairing such motor vehicle Financed Vehicle unless it shall determine (i) that such restoration will increase the Liquidation Proceeds 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 policyInsurance Policy. The Master Servicer shall be responsible for all other costs and expenses incurred by it in connection with any action taken in respect of a Defaulted 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 policyInsurance Policy. All Net Liquidation Proceeds (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Master Collections Collection Account (without deposit in any intervening account) to the extent required by the Servicing AgreementSection 5.02.

Realization upon Defaulted Contracts. In accordance The Servicer shall use its best efforts, consistent with the servicing procedures specified in the Servicing AgreementStandards and Section 3.01, the Servicer shall repossess, to repossess or otherwise comparably convert the ownership of, any Leased of the Financed Vehicle securing a Defaulted any Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Servicing AgreementFinanced 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 responsible prudent holders of lease retail installment sales contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Financed Vehicle or any Defaulted Contractcontract in default, may commence or and prosecute any judicial proceedings in respect of such Contract in its own namename or, or if the Servicer deems it necessary, in the name of the Buyer Issuer or the Trustee, on behalf of the Buyer Indenture Trustee or on behalf of the Issuer or the Indenture Trustee. The Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Leased Financed Vehicle from an insured 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 Liquidation Proceeds proceeds of liquidation of the related Contract, after reimbursement to itself for such expenses, expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable insurance policy. 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, provided 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 (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Master Collections Collection Account (without deposit in any intervening account) to the extent required by the Servicing AgreementSection 4.02.

Realization upon Defaulted Contracts. In accordance The Servicer shall use its best efforts, consistent with the servicing procedures specified in the Servicing AgreementStandards and Section 3.01, the Servicer shall repossess, to repossess or otherwise comparably convert the ownership of, any Leased of the Financed Vehicle securing a Defaulted any Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Servicing AgreementFinanced 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 responsible prudent holders of lease retail installment sales contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Financed Vehicle or any Defaulted Contractcontract in default, may commence or and prosecute any judicial proceedings in respect of such Contract in its own namename or, or if the Servicer deems it necessary, in the name of the Buyer Issuer or the Trustee, on behalf of the Buyer Indenture Trustee or on behalf of the Issuer or the Indenture Trustee. The Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Leased Financed Vehicle from an insured 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 Liquidation Proceeds proceeds of liquidation of the related Contract, after reimbursement to itself for such expenses, expenses and (ii) that such expenses will be recoverable recover able by it either as Liquidation Expenses or as expenses recoverable under an applicable insurance policy. 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, provided 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 (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Master Collections Collection Account (without deposit in any intervening account) to the extent required by the Servicing AgreementSection 4.02.

Realization upon Defaulted Contracts. In accordance The Servicer shall use its best efforts, consistent with the servicing procedures standard specified in the Servicing AgreementSection 3.01, the Servicer shall repossess, to repossess or otherwise comparably convert the ownership of, any Leased of the Financed Vehicle securing a Defaulted any Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Servicing AgreementFinanced 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 responsible prudent holders of lease retail installment sales contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Financed Vehicle or any Defaulted Contractcontract in default, may commence or and prosecute any judicial proceedings in respect of such Contract in its own namename or, or if the Servicer deems it necessary, in the name of the Buyer Issuer or the Trustee, on behalf of the Buyer Indenture Trustee or on behalf of the Issuer or the Indenture Trustee. The Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Leased Financed Vehicle from an insured 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 Liquidation Proceeds proceeds of liquidation of the related Contract, after reimbursement to itself for such expenses, expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable insurance policypolicy 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, provided 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 (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Master Collections Collection Account (without deposit in any intervening account) to the extent required by the Servicing AgreementSection 4.02.

Realization upon Defaulted Contracts. In accordance The Servicer shall use its best efforts, consistent with the servicing procedures specified in the Servicing AgreementStandards and Section 3.01, the Servicer shall repossess, to repossess or otherwise comparably convert the ownership of, any Leased of the Financed Vehicle securing a Defaulted any Contract and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant payments. Such servicing procedures may include reasonable efforts to realize upon any recourse to Dealers and selling the Servicing AgreementFinanced 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 responsible prudent holders of lease retail installment sales contracts and as shall be in compliance with all applicable laws, and, in connection with the repossession of any Leased Financed Vehicle or any Defaulted Contractcontract in default, may commence or and prosecute any judicial proceedings in respect of such Contract in its own namename or, or if the Servicer deems it necessary, in the name of the Buyer Issuer or the Trustee, on behalf of the Buyer Indenture Trustee or on behalf of the Issuer or the Indenture Trustee. The Servicer's obligations under this Section 3.03 are subject to the provision that, in the case of damage to a Leased Financed Vehicle from an insured 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 Liquidation Proceeds proceeds of liquidation of the related Contract, after reimbursement to itself for such expenses, expenses and (ii) that such expenses will be recoverable by it either as Liquidation Expenses or as expenses recoverable under an applicable insurance policy. 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, provided 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 (net of Liquidation Expenses) and Net Insurance Proceeds (net of expenses incurred by the Servicer and recoverable under the related insurance policy and net of the portion thereof applied to the repair of any Leased Vehicle or released to an Obligor in accordance with the Servicer's normal servicing procedures) shall be deposited directly in or credited to the Master Collections Collection Account (without deposit in any intervening account) to the extent required by the Servicing AgreementSection 4.02.