Release of Receivables Upon Purchase by NMAC or the Servicer Sample Clauses
This clause defines the process by which receivables are released from any encumbrances or claims when they are purchased by NMAC or the Servicer. In practice, this means that once NMAC or the Servicer acquires the receivables, any security interests or liens previously attached to those receivables are removed, ensuring the buyer receives them free and clear. The core function of this clause is to guarantee that the purchaser obtains full rights to the receivables without any competing claims, thereby facilitating smooth and unencumbered transfers.
Release of Receivables Upon Purchase by NMAC or the Servicer. (a) Upon repurchase of any Receivable by NMAC pursuant to Section 4.3 of the Purchase Agreement or any purchase of any Receivable by the Servicer pursuant to Section 4.06 or Section 9.01 of the Sale and Servicing Agreement, the Indenture Trustee, on behalf of the Noteholders, shall, without further action, be deemed to release from the Lien of this Indenture such repurchased Receivable, all monies due or to become due with respect thereto and all proceeds thereof and the other property with respect to such Receivable, and all security and any documents relating thereto, and NMAC or the Servicer, as applicable, shall thereupon own each such Receivable, and all such related security and documents, free of any further obligation to the Issuer, the Indenture Trustee or the Noteholders with respect thereto.
(b) The Indenture Trustee shall execute such documents and instruments and take such other actions as shall be reasonably requested by NMAC or the Servicer, as the case may be, to effect the release of such Receivable pursuant hereto and the assignment of such Receivable by the Issuer pursuant to Section 9.02 of the Sale and Servicing Agreement.