Common use of Additional Finance Charges Clause in Contracts

Additional Finance Charges. On each Distribution Date, (a) the Servicer shall allocate Additional Finance Charges with respect to the Series in a Group to each Series in such Group, pro rata, in proportion to the Finance Charge Shortfalls, if any, with respect to each such Series and (b) the Servicer shall withdraw (or shall instruct the Trustee to withdraw) from the Collection Account and pay to the Transferors an amount equal to the excess, if any, of (x) the aggregate amount for all outstanding Series in a Group of the amounts which the related Supplements specify are to be treated as "Additional Finance Charges" for such Distribution Date over (y) the aggregate amount for all outstanding Series in such Group which the related Supplements specify are "Finance Charge Shortfalls" for such Distribution Date; provided, however, that the sharing of Additional Finance Charges among Series in a Group will continue only until such time, if any, at which a Transferor shall deliver to the Trustee an Officer's Certificate to the effect that, in the reasonable belief of such Transferor, the continued sharing of Additional Finance Charges among Series in any Group would have adverse regulatory implications with respect to such Transferor or the Account Owner. Following the delivery by a Transferor of such an Officer's Certificate to the Trustee there will not be any further sharing of Additional Finance Charges among Series in any Group.

Appears in 2 contracts

Sources: Pooling and Servicing Agreement (Providian Master Trust), Pooling and Servicing Agreement (Providian Master Trust)