priority provided in the CCA Agreement.
(b)
Breach of Representation or Warranty.
If on
any day any of the representations or warranties with respect to eligibility set
forth in Section 3.1(j) hereof was or becomes untrue with respect to an Account
(whether on or after the date of the pledge thereof to the Collateral Agent, for
the benefit of the Secured Parties), the Borrower shall be deemed to have
received on such day a Collection of such Account in full and the Borrower shall
on such day pay to the Master Servicer from funds other than actual Available
Collections (other than actual Collections otherwise distributable to the
Borrower under Section 4.1(d) of the CCA Agreement) an amount equal to the
unpaid balance of such Account and such amount shall be allocated and applied by
as a Collection in accordance with Article II of the Master Servicing Agreement
and the CCA Agreement.
SECTION 2.6.
MANDATORY AND OPTIONAL
PREPAYMENTS.
(A)
ON EACH REMITTANCE DATE FOLLOWING THE
FACILITY TERMINATION DATE, AVAILABLE COLLECTIONS SHALL BE APPLIED TO REDUCE THE
NET INVESTMENT IN ACCORDANCE WITH SECTION 4.1(D)(VIII) OF THE CCA AGREEMENT.
8
(B)
PRIOR TO THE FACILITY TERMINATION DATE, UPON
THE OCCURRENCE OF A BORROWING BASE DEFICIENCY, THE BORROWER SHALL EITHER:
(I) WITHIN FIVE (5) BUSINESS DAYS (THE "DEFICIENCY CURE PERIOD") DELIVER OR
CAUSE TO BE DELIVERED ADDITIONAL ELIGIBLE ACCOUNTS TO THE COLLATERAL AGENT OR
DEPOSIT OR CAUSE TO BE DEPOSITED CASH INTO THE PRINCIPAL PAYMENT ACCOUNT, IN
EITHER CASE, IN AN AMOUNT (BASED , IN THE CASE OF ELIGIBLE ACCOUNTS, ON THE
LESSER OF THE APB AND AMV THEREOF ON THE DATE OF DELIVERY, AS DETERMINED BY THE
AGENT) AT LEAST EQUAL TO SUCH BORROWING BASE DEFICIENCY OR (II) IN THE EVENT
THAT THE BORROWING BASE DEFICIENCY ARISES AS A RESULT OF THE DETERMINATION OF
MARKET VALUE PURSUANT TO CLAUSE (II) OF THE DEFINITION THEREOF, AT THE
BORROWER'S OPTION EITHER (A) FOLLOW THE PROCEDURES SET FORTH IN CLAUSE (I) OF
THIS SECTION 2.6(B) OR (B) MAY EMPLOY THE PROCEDURES SET FORTH IN THE DEFINITION
OF MARKET VALUE, AND UPON A FINAL DETERMINATION OF MARKET VALUE AS CONTEMPLATED
THEREIN, TO THE EXTENT THAT A BORROWING BASE DEFICIENCY STILL EXISTS AFTER USING
THE FINAL DETERMINATION OF MARKET VALUE, THEN, THE BORROWER SHALL FOLLOW THE
PROCEDURES SET FORTH IN CLAUSE (I) OF THIS SECTION 2.6(B); PROVIDED THAT IN SUCH
EVENT, THE DEFICIENCY CURE PERIOD SHALL BE FIFTEEN (15) BUSINESS DAYS FOLLOWING
THE OCCURRENCE OF A BORROWING BASE DEFICIENCY.
FUNDS DEPOSITED IN THE PRINCIPAL
PAYMENT ACCOUNT SHALL BE APPLIED TO THE REDUCTION OF THE NET INVESTMENT IN THE
MANNER AND SUBJECT TO THE PRIORITY OF PAYMENTS PROVIDED IN SECTION 4.1(C) OF THE
CCA AGREEMENT.
ANY CASH DEPOSITED BY THE BORROWER PURSUANT TO THIS
SECTION 2.6(B) SHALL BE MADE FROM FUNDS OTHER THAN AVAILABLE COLLECTIONS
OTHERWISE DISTRIBUTABLE TO THE BORROWER PURSUANT TO SECTION 4.1(D) OF THE CCA
AGREEMENT, WHICH MAY BE USED BY THE BORROWER FOR SUCH PURPOSE.
(C)
[RESERVED].
(D)
[RESERVED].
(E)
[RESERVED].
(F)
THE BORROWER SHALL