Common use of Calculation of Notional Principal Amount Clause in Contracts

Calculation of Notional Principal Amount. (a) Solely for the purpose of calculating the Class I Monthly Interest, the aggregate Class A Note Balance will be divided into, and equal the sum of, two principal components: (i) the "PAC Component" and (ii) the "Companion Component." The PAC Component shall initially equal the Original Notional Principal Amount. (b) On each Payment Date, solely for the purposes of calculating the Notional Principal Amount, the Monthly Principal will be allocated (i) first, to the PAC Component up to the amount necessary to reduce the PAC Component to its Planned Notional Principal Amount for such Payment Date, as specified on the Planned Notional Principal Amount Schedule attached as Schedule B, (ii) second, to the Companion Component until the balance thereof is reduced to zero, and (iii) third, to the PAC Component without regard to the Planned Notional Principal Amount for such Payment Date, until reduced to zero. If the amount of Available Funds (together with amounts withdrawn from the Spread Account) are not sufficient on any Payment Date to pay the required payment of Class A Monthly Principal to the Class A Noteholders in full on any Payment Date at any time after the occurrence and during the continuance of an Insurer Default, any shortfall in the principal payments on the Class A Notes will be allocated to reduce the PAC Component and the Companion Component on a pro rata basis. To the extent there are any recoveries on the Receivables creating such shortfall, such recoveries, to the extent of any portion thereof allocable to Class I Monthly Interest, shall be allocated to pay Class I Monthly Interest.

Calculation of Notional Principal Amount. (a) Solely for the purpose of calculating the Class I Monthly Interest, the aggregate Class A Note Balance will be divided into, and equal the sum of, two principal components: (i) the "“PAC Component" ” and (ii) the "“Companion Component." ” The PAC Component shall initially equal the Original Notional Principal Amount. (b) On each Payment Date, solely for the purposes of calculating the Notional Principal Amount, the Monthly Principal will be allocated (i) first, to the PAC Component up to the amount necessary to reduce the PAC Component to its Planned Notional Principal Amount for such Payment Date, as specified on the Planned Notional Principal Amount Schedule attached as Schedule B, (ii) second, to the Companion Component until the balance thereof is reduced to zero, and (iii) third, to the PAC Component without regard to the Planned Notional Principal Amount for such Payment Date, until reduced to zero. If the amount of Available Funds (together with amounts withdrawn from the Spread Account) are not sufficient on any Payment Date to pay the required payment of Class A Monthly Principal to the Class A Noteholders in full on any Payment Date at any time after the occurrence and during the continuance of an Insurer Default, any shortfall in the principal payments on the Class A Notes will be allocated to reduce the PAC Component and the Companion Component on a pro rata basis. To the extent there are any recoveries on the Receivables creating such shortfall, such recoveries, to the extent of any portion thereof allocable to Class I Monthly Interest, shall be allocated to pay Class I Monthly Interest.