TO REQUIRE AN ORIGINATOR TO REPURCHASE CONTRACTS FOR BREACHES OF REPRESENTATIONS
AND WARRANTIES MADE BY THE RESPECTIVE ORIGINATORS.
(B)
IF THE FULL AMOUNT OF A SCHEDULED PAYMENT
DUE UNDER A CONTRACT IS NOT TIMELY RECEIVED, THE SERVICER SHALL MAKE REASONABLE
AND CUSTOMARY EFFORTS TO COLLECT SUCH CONTRACT IN ACCORDANCE WITH THIS SERVICING
AGREEMENT AND THE PROCEDURES SET FORTH IN THE COLLECTION POLICY. THE SERVICER
SHALL USE ITS BEST EFFORTS, CONSISTENT WITH THE STANDARD OF CARE SET FORTH IN
SECTION 2.18 HEREOF, TO COLLECT FUNDS ON A DEFAULTED CONTRACT; SUCH COLLECTIONS
SHALL BE DEPOSITED INTO THE COLLECTION ACCOUNT NO LATER THAN TWO BUSINESS DAYS
FOLLOWING RECEIPT THEREOF. THE SERVICER SHALL, CONSISTENT WITH THE STANDARD OF
CARE SET FORTH IN SECTION 2.18 HEREOF, HAVE THE DISCRETION TO DETERMINE WHETHER
OR NOT IT IS IN THE BEST INTEREST OF THE ISSUER TO SELL, OR NOT TO SELL, A
DEFAULTED CONTRACT, AND TO ACT IN ACCORDANCE WITH ITS DETERMINATION UNDER THIS
ARTICLE II.
(C)
THE SERVICER SHALL PROVIDE MONTHLY REPORTS
SUBSTANTIALLY IN THE FORM OF EXHIBIT A-1 HERETO, EACH UNDER A CERTIFICATE
SUBSTANTIALLY IN THE FORM OF EXHIBIT A-2 HERETO, TO THE INDENTURE TRUSTEE. THE
SERVICER SHALL ALSO PROVIDE, ELECTRONICALLY AND, BY MAIL AND FACSIMILE
TRANSMISSION IF REQUESTED, COPIES OF SUCH REPORTS AND CERTIFICATES TO THE
BACK-UP SERVICER, THE INSURER, THE RATING AGENCIES AND ANY OTHER PERSONS
IDENTIFIED ON A LIST PROVIDED TO THE SERVICER BY THE ISSUER, AS SUCH LIST MAY BE
AMENDED FROM TIME TO TIME, REGARDING (I) PAYMENTS RECEIVED FROM OR ON BEHALF OF
THE OBLIGORS AND DEPOSITED TO THE COLLECTION ACCOUNT (IDENTIFIED IN SECTION 3.03
HEREOF) REPRESENTING COLLECTIONS WITH RESPECT TO THE CONTRACTS, (II) OTHER
AMOUNTS RECEIVED WITH RESPECT TO THE CONTRACTS, INCLUDING LIQUIDATION PROCEEDS
OR THE PROCEEDS OF REPURCHASES UNDER THE SALE AND ALLOCATION AGREEMENT,
(III) OTHER MATTERS RELATING TO THE CONTRACTS INCLUDING EXTENSIONS,
DELINQUENCIES, REPOSSESSIONS AND FILING AND PAYMENT OF CLAIMS UNDER INSURANCE
POLICIES, (IV) FINANCIAL INFORMATION USED TO CALCULATE WHETHER CERTAIN EVENTS OF
DEFAULT HAVE OCCURRED, (V) CALCULATION OF THE THREE MONTH AVERAGE DELINQUENCY
RATIO AND THE CUMULATIVE NET LOSS RATE, AND (VI) OTHER ITEMS REFLECTED ON
EXHIBIT A-1. SUCH REPORTS SHALL BE DELIVERED TO THE PARTIES SPECIFIED ABOVE NO
LATER THAN THE DETERMINATION DATE RELATED TO EACH COLLECTION
7
PERIOD. THE SERVICER MAY SUBMIT THE REPORTS AND OTHER DOCUMENTS DESCRIBED IN
THIS SECTION IN ELECTRONIC FORMAT.
(D)
THE BACK-UP SERVICER SHALL PROVIDE MONTHLY
REPORTS TO THE INDENTURE TRUSTEE, AND THE INDENTURE TRUSTEE SHALL PROVIDE COPIES
OF SUCH REPORTS TO THE RATING AGENCIES, THE INSURER, THE ISSUER AND ANY OTHER
PERSONS IDENTIFIED ON A LIST PROVIDED TO THE BACK-UP SERVICER BY THE ISSUER, AS
SUCH LIST MAY BE AMENDED FROM TIME TO TIME, SUBSTANTIALLY IN THE FORM OF
EXHIBIT B HERETO. SUCH REPORT SHALL BE DATED AS OF THE DETERMINATION DATE FOR
EACH PAYMENT DATE AND DELIVERED TO THE INDENTURE TRUSTEE ON OR BEFORE SUCH
PAYMENT DATE.
(E)
THE SERVICER SHALL, UPON REQUEST, PROMPTLY,
BUT NO LATER THAN TWO (2) BUSINESS DAYS AFTER RECEIPT OF A