Common use of Allocation of Charge-Off Amounts Clause in Contracts

Allocation of Charge-Off Amounts. (a) On each Payment Date, the Servicer shall calculate the amount of Charge-off Amounts for the preceding Collection Period, and shall include such calculation in its Servicing Certificate. (b) On each Payment Date, the Investor Charge-off Amounts for such Payment Date shall be allocated as follows: (i) first, to Excess Cashflow until the Excess Cashflow is reduced to zero; and (ii) second, to the Overcollateralization Amount until the Overcollateralization Amount is reduced to zero. (c) Investor Charge-off Amounts shall not be allocated to the Notes on any Payment Date.