Contrasts with categorial. It is the background understanding that provides the context in terms of which one approaches the thing to be interpreted. The distinction becomes really important in division two. The latter, nonetheless, are probably paraphernalia. The way of in which understanding develops so as to cope with breakdown or felt difficulty.
Interpretation explicitly takes things as being things of such and such a sort.
E.g., when the hammer breaks, you stop and look at it and take it explicitly as a hammer. In this way, positive, existential leveling down becomes a negative, authentic phenomenon. That upon which one projects entities in understanding them. That as which one casts entities in understanding them. An affective condition.