Common use of Simple Interest Method; Methods of Allocating Payments or Receivables; Allocations Clause in Contracts

Simple Interest Method; Methods of Allocating Payments or Receivables; Allocations. All allocations of payments to principal and interest and determinations of periodic charges and the like on the Receivables shall be based on a year with the actual number of days in such year and twelve months with the actual number of days in each such month. Each payment on a Receivable shall be applied first, to the payment of accrued and unpaid interest on such Receivable, second, to reduce the scheduled principal amount outstanding on the Receivable to the extent of the remaining scheduled payment, third, to any outstanding fees and Late Fees under the terms of the Receivable and fourth, to reduce the principal amount outstanding on the Receivable. Amounts paid by the Seller or the Servicer in respect of Repurchased Receivables shall be allocated as if the Obligor thereof had prepaid such Receivable in full on the date as of which such Receivable was repurchased by the Seller pursuant to Section 3.2 or purchased by the Servicer pursuant to Section 4.6 or 9.1.