Common use of Allocation Adjustments Clause in Contracts

Allocation Adjustments. Unless the Servicer is depositing Collections monthly pursuant to Section 4.3, on each Collection Recomputation Date to and including the Collection Recomputation Date after the Collection Recomputation Date referred to in clause (ii) below, the Servicer shall recompute the allocations to the Series 1997-1 Certificates previously made pursuant to subsections 4.7(a), (b) and (c) (i) in the case of a Collection Recomputation Date which occurs prior to the Conversion Date, during each Billing Cycle which ended during the preceding Monthly Period and (ii) in the case of the Collection Recomputation Date which occurs in the Monthly Period in which the Conversion Date occurs, during each Billing Cycle which ended during the preceding Monthly Period and on any other Date of Processing during such Monthly Period prior to the Conversion Date (such allocations with respect to any such period, the "Estimated Allocations") based on the Collected Finance Charge Receivables and the Collected Principal Receivables (such allocations with respect to any such period, the "Actual Allocations"), and based on the Actual Allocations of Finance Charge Receivables and Principal Receivables not later than 11:00 a.m. New York City time on the Transfer Date following such Collection Recomputation Date: (1) make any necessary deposits or withdrawals with respect to the Finance Charge Account and the Principal Account such that the amount on deposit in each such account with respect to such Monthly Period is equal to the amount that would have been on deposit if the Actual Allocation of Finance Charge Receivables and the Actual Allocation of Principal Receivables had been made on each day during such Monthly Period; (2) pay to the Transferor any underpayment with respect to allocations of Principal Receivables or Finance Charge Receivables with respect to such Monthly Period; (3) notify the Transferor of the amount of any overpayment to such Holder which such recomputation discloses, and the Transferor shall deposit into the Finance Charge Account, the Principal Account and the Excess Funding Account, as provided in the notice from the Servicer, any portion of any such overpayment which resulted in a shortfall in the amounts deposited into each such account; and (4) for the purposes of administrative convenience, payments to be made to the Transferor and deposits to be made by the Transferor pursuant to this subsection 4.7(e) may be netted against each other. It is the intention of the parties that this subsection 4.7(e) be construed so that the reallocation provided for herein shall result in the Series 1997-1 Certificateholders and the Collateral Interest Holder on the one hand and the Transferor on the other hand being in the same position they would have been in if the Estimated Allocations had been based upon actual Collections of Principal Receivables.