Common use of Characteristics of Contracts Clause in Contracts

Characteristics of Contracts. (i) Each Contract: (i) has been originated in the United States by a Dealer for the retail sale of a Financed Vehicle in the ordinary course of such Dealer’s business, has been fully and properly executed by the parties thereto, and has been validly assigned by such Dealer to the Originator; (ii) creates a valid, subsisting, and enforceable first priority security interest for the benefit of the Originator in the Financed Vehicle, which security interest has been, in turn, assigned by the Originator to the Depositor; (iii) contains customary and enforceable provisions such that the rights and remedies of the holder thereof shall be adequate for realization against the collateral of the benefits of the security; (iv) provides for level monthly payments (provided that the payment in the first or last month in the life of the Contract may be minimally different from the level payment) that fully amortize the Amount Financed by maturity and yield interest at the Annual Percentage Rate over an original term of no less than [ ] months and no greater than [ ] months; (v) provides for, in the event that such Contract is prepaid in full, a prepayment that fully pays the Principal Balance; (vi) is a Simple Interest Contract; and (vii) no Obligor has defaulted and no Obligor will default, in each case, on any portion of the first Contract Scheduled Payment due on the related Contract.