Common use of Removal and Sale of Loans Clause in Contracts

Removal and Sale of Loans. (a) In the event that a Loan becomes a Delinquent Loan or the Obligor thereon is subject to a bankruptcy proceeding, the Seller shall be granted an assignable option (a “Purchase Option”) to purchase such Delinquent Loan and the other related Purchaser Assets, subject to the terms and conditions herein, from the Purchaser at a price (the “Option Price”) equal to the Purchase Amount. The Seller may sell, transfer, assign or otherwise convey its Purchase Option with respect to any such Loan and the other related Purchaser Assets to any party at any time after the related Loan becomes a Delinquent Loan or the Obligor thereon is subject to a bankruptcy proceeding. The Seller shall notify the Purchaser of such transfer and such notice shall include the transferee’s name, address, telephone number, facsimile number and appropriate contact person(s) and shall be acknowledged in writing by the transferee. If not exercised earlier, the Purchase Option with respect to any such Loan and the other related Purchaser Assets shall automatically terminate upon (i) in the case of a Delinquent Loan, the related Obligor’s cure of all defaults on the Loan, (ii) the acquisition by, or on behalf of, the Purchaser of the related Equipment through repossession or (iii) a repurchase of such Loan and the other related Purchaser Assets due to the Seller’s breach of a representation with respect to such Loan. The Pool Balance of Loans with respect to which the Seller may exercise its Purchase Option at any time before the Redemption Date shall not exceed 10% of the aggregate Pool Balance of the Loans as of the Cut-off Date.