Annualized Net Charge-offs definition
Annualized Net Charge-offs means (A) the sum of (1) gross losses minus (2) late fee and finance charge reversals, multiplied by (B) twelve (12). Zale’s liability for the 60/40 Recourse Amount Due shall be calculated on a monthly basis and charged against the 60/40 Reserve Account as outlined below. Commencing in January 2011, and for each succeeding January during the Term, Bank and Zale will review the loss sharing results and the parties will make a determination as to whether the Zale loss share exceeds the actual principal loss minus ten percent (10%) of the average accounts receivable, with any loss in excess of such amount to be refunded by Bank to Zale. Once a 60/40 Recourse Account balance is reduced to the amount of the credit line in existence immediately prior to the transaction made under the 60/40 Program that caused such Account to be identified as a 60/40 Recourse Account, Zale shall have no liability, whether now or hereafter, for such Account under this Agreement, unless the Cardholder makes a subsequent transaction made under the 60/40 Program resulting in such Account being identified as a 60/40 Recourse Account. If a Cardholder returns merchandise purchased in a transaction made under the 60/40 Program, and Zale issues a full credit for the amount charged to the Card in the 60/40 Program transaction, and there are no other 60/40 Program outstanding balances on the 60/40 Recourse Account, then at Zale’s request, Bank will remove the Account from the 60/40 Program, and Zale shall have no further liability for such Account under this Agreement. At no time shall the aggregate amount of receivables for the 60/40 Recourse Accounts under the 60/40 Program exceed [redacted].
Annualized Net Charge-offs has the meaning given to such term in Section 3.21(b)(ii) of this Agreement.
Examples of Annualized Net Charge-offs in a sentence
No later than the thirtieth (30th) day of each month during the Term, beginning on October 30, 2010, and for so long as any 60/40 Recourse Account exists, Bank shall calculate and ▇▇▇▇ ▇▇▇▇ for, and Zale shall be liable for, an amount equal to the amount by which the Annualized Net Charge-offs of the 60/40 Accounts for the immediately preceding month exceed ten percent (10%) of the aggregate amount of all 60/40 Recourse Account balances (the “60/40 Recourse Amount Due”).