Common use of Cancellation of Ancillary Product or Service Clause in Contracts

Cancellation of Ancillary Product or Service. If an Ancillary Product has been sold by Dealer and financed pursuant to a Purchased Contract, and: (i) Avid suffers any loss on such Purchased Contract as a result of default, breach, failure of payment, repossession, legal action, including without limitation bankruptcy, skip or total loss of the Vehicle securing such Purchased Contract, any refund of any premium, tax credit or other charge paid by Avid for any Ancillary Products financed pursuant to such Purchased Contract shall, upon written request by Avid, be remitted to Avid within thirty (30) calendar days of such event to Avid by Dealer to be applied toward the balance owing under such Purchased Contract; (ii) any such Ancillary Products sold pursuant to a Purchased Contract are otherwise canceled, any unearned premiums or other monies shall be remitted to Avid within thirty (30) calendar days of such cancellation by Dealer to be applied to the balance owing under the applicable Purchased Contract; or