Applied Realized Loss Amounts. On each Distribution Date, if (I) the aggregate Certificate Principal Balance of all Classes of Class A and Class M Certificates (calculated after taking into account all distributions of principal on such Distribution Date, including any Extra Principal Distribution Amount) exceeds (II) the Pool Balance as of the last day of the preceding Collection Period, then such excess will be allocated as follows: (i) first, to the Class M-2 Certificates until the Class M-2 Certificate Principal Balance has been reduced to zero; and (ii) second, to the Class M-1 Certificates until the Class M-1 Certificate Principal Balance has been reduced to zero. This allocation of Realized Losses to Certificateholders shall be effected through the reduction of the applicable Class or Classes' Certificate Principal Balance.
Appears in 2 contracts
Sources: Pooling and Servicing Agreement (HFC Revolving Corp), Pooling and Servicing Agreement (Compass Asset Acceptance Co)