Common use of Collection of Contract Payments Clause in Contracts

Collection of Contract Payments. The Servicer shall make reasonable efforts, consistent with the customary servicing practices and procedures employed by the Servicer with respect to Contracts owned or serviced by it, to collect all payments called for under the terms and provisions of the Contracts as and when the same shall become due, and in connection therewith shall follow such normal collection practices and procedures as it follows with respect to comparable new or used marine installment sale contracts and direct loan agreements that it services for itself and others. The Servicer shall not reduce or defer scheduled payments, extend any Contract or otherwise modify the terms of any Contract; provided, however, that, consistent with its customary practices and servicing procedures, the Servicer may, in its discretion, arrange with an Obligor to, defer, reschedule, extend or modify the payment schedule of any delinquent Contract for credit related reasons that would be acceptable to the Servicer with respect to a comparable Contract secured by a new or used Boat that it services for itself or others, so long as (a) the maturity of such Contract would not be extended beyond the 180th day prior to the Certificate Final Scheduled Distribution Date and (b) the deferral, rescheduling, extension or other modification of the terms of the Contract would not constitute a cancellation of such Contract and the creation of a new installment sale contract or direct loan. If, as a result of deferring, rescheduling or extending of payments or any other modification, such deferring, rescheduling, extension or modification breaches any of the terms of the preceding sentence, then the Servicer shall be obligated to purchase such Contract pursuant to Section 4.07 hereof on the Deposit Date immediately following the date on which it became aware or received written notice from the Trust of such failure. The Servicer may, in accordance with its customary servicing practices and procedures, in its good faith judgment, waive any Late Fees that may be due or payable under any Contract. Notwithstanding the foregoing, in connection with the settlement by the Servicer of a defaulted Contract, the Servicer may forgive a portion of such Contract, if in its discretion it believes that the acceptance of the settlement proceeds from the related Obligor would result in the Trust's receiving a greater amount of collections than the Net Liquidation Proceeds that would result from repossessing and liquidating the related Financed Boat.

Collection of Contract Payments. (a) The Servicer shall make reasonable efforts, consistent with the customary servicing practices and procedures employed by the Servicer with respect to Contracts owned or serviced by it, proceed diligently to collect all payments called for under the terms and provisions of the Contracts, and shall service the Contracts in a manner consistent with the servicing standards and procedures generally accepted in the financial services industry for similar contracts, and as otherwise expressly provided by this Agreement. Consistent with the foregoing, the Servicer may in its discretion (i) waive any late payment charge and (ii) extend the then current maturity date of a Contract by two months once during each calendar year at the request of the related Obligor on account of the Obligor's adverse financial circumstances that affect the Obligor's ability to make payments under such Contract; provided however, that the Servicer may not so extend the then current maturity date of Contract more than twice during the life of such Contract; provided further, that the aggregate number of contracts that have been so extended during any twelve month period shall not exceed the product of (i) 3.5% (0.035) and (i) the aggregate number of outstanding Contracts as and when of the same beginning of such twelve month period. (b) The Servicer shall become dueinstruct (or shall cause the Subservicer to instruct) all Obligors to make all payments due in respect of the Contracts to the Subservicer Account. The Servicer shall, and pursuant to the Subservicing Agreement, cause the Subservicer to use any amounts other than collections in connection therewith shall follow such normal collection practices and procedures as it follows with respect to comparable new or used marine installment sale contracts and direct loan agreements that it services for itself and othersof motor vehicle financing obligations serviced by the Subservicer. The Servicer shall cause the Subservicer to use its best efforts to transfer to the Collection Account all collected funds on deposit in the Subservicer Account that constitute part of the Trust Estate within one Business Day, and in any event within two Business Days of receipt thereof. If the Servicer, the Transferor, NAFCO, ACCH or any Subservicer receives collections under or other payments in respect of the Contracts, each such Person shall as soon as practicable, but no later than two Business Days following receipt of such item by such Person, cause such payment to be remitted to the Trustee for deposit to the Collection Account. If the Servicer determines that any amount that is not reduce or defer scheduled payments, extend a part of the Trust Estate has been deposited in any Contract or otherwise modify the terms of any Contract; provided, however, that, consistent with its customary practices and servicing proceduresAccount, the Servicer mayshall promptly instruct the Trustee by facsimile (with prompt telephone confirmation) to segregate such amount, in its discretion, arrange with an Obligor to, defer, reschedule, extend or modify and shall therein direct the payment schedule Trustee to turn over such amounts to the Person entitled thereto within two Business Days. A copy of any delinquent Contract for credit related reasons that would such direction shall be acceptable delivered by the Servicer to the Certificate Insurer. (c) The Servicer with respect shall cause OFSA to maintain the Subservicer Account or a comparable Contract secured account, and shall cause any other Subservicer to maintain an account comparable to the Subservicer Account, to which Obligors shall have been directed to remit payments in respect of the Contracts. If the Subservicer Account or any comparable account maintained by a new or used Boat that it services Subservicer is terminated for itself or others, so long as (a) the maturity of such Contract would not be extended beyond the 180th day any reason prior to the Certificate Final Scheduled Distribution Date establishment of, and (b) notification to Obligors to remit payments to, a replacement servicing account comparable to the deferralSubservicer Account, rescheduling, extension or other modification of the terms of the Contract would not constitute a cancellation of such Contract and the creation of a new installment sale contract or direct loan. If, as a result of deferring, rescheduling or extending of payments or any other modification, such deferring, rescheduling, extension or modification breaches any of the terms of the preceding sentence, then the Servicer shall be obligated to purchase promptly, and in any event within 30 days of termination of such Contract Subservicer Account or comparable account, establish a Lockbox Account pursuant to Section 4.07 hereof on the Deposit Date immediately following the date on which it became aware or received written notice from the Trust of such failure. The Servicer may, a Lockbox Agreement and notify all Obligors to remit payments in accordance with its customary servicing practices and procedures, in its good faith judgment, waive any Late Fees that may be due or payable under any Contract. Notwithstanding the foregoing, in connection with the settlement by the Servicer of a defaulted Contract, the Servicer may forgive a portion of such Contract, if in its discretion it believes that the acceptance respect of the settlement proceeds from the related Obligor would result in the Trust's receiving a greater amount of collections than the Net Liquidation Proceeds that would result from repossessing and liquidating the related Financed BoatContracts to such Lockbox Account.

Collection of Contract Payments. (a) The Master Servicer shall make reasonable efforts, consistent with the customary servicing practices and procedures employed by the Servicer with respect to Contracts owned or serviced by it, proceed diligently to collect all payments called for under the terms and provisions of the Contracts, and shall service the Contracts in a manner consistent with the servicing standards and procedures generally accepted in the financial services industry for similar contracts, and as otherwise expressly provided by this Agreement. Consistent with the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge and (ii) extend the then current maturity date of a Contract by two months once during each calendar year at the request of the related Obligor on account of the Obligor's adverse financial circumstances that affect the Obligor's ability to make payments under such Contract; provided however, that the Master Servicer may not so extend the then current maturity date of Contract more than twice during the life of such Contract; provided further, that the aggregate number of contracts that have been so extended during any twelve month period shall not exceed the product of (i) 3.5% (0.035) and (i) the aggregate number of outstanding Contracts as and when of the same beginning of such twelve month period. (b) The Master Servicer shall become dueinstruct (or shall cause the Subservicer to instruct) all Obligors to make all payments due in respect of the Contracts to the Subservicer Account. The Master Servicer shall, pursuant to the Subservicing Agreement, cause the Subservicer to use any amounts other than collections in respect of motor vehicle financing obligations serviced by the Subservicer. The Master Servicer shall cause the Subservicer to use its best efforts to transfer to the Collection Account all collected funds on deposit in the Subservicer Account that constitute part of the Trust Estate within one Business Day, and in connection therewith any event within two Business Days of receipt thereof. If the Master Servicer, the Transferor, NAFCO or any Subservicer receives collections under or other payments in respect of the Contracts, each such Person shall follow as soon as practicable, but no later than two Business Days following receipt of such normal collection practices and procedures as it follows with respect item by such Person, cause such payment to comparable new or used marine installment sale contracts and direct loan agreements be remitted to the Trustee for deposit to the Collection Account. If the Master Servicer determines that it services for itself and others. The any amount that is not a part of the Trust Estate has been deposited in any Account, the Master Servicer shall not reduce or defer scheduled paymentspromptly instruct the Trustee by facsimile (with prompt telephone confirmation) to segregate such amount, extend any Contract or otherwise modify and shall therein direct the terms Trustee to turn over such amounts to the Person entitled thereto within two Business Days. A copy of any Contract; provided, however, that, consistent with its customary practices and servicing procedures, such direction shall be delivered by the Master Servicer may, in its discretion, arrange with an Obligor to, defer, reschedule, extend or modify the payment schedule of any delinquent Contract for credit related reasons that would be acceptable to the Certificate Insurer. (c) The Master Servicer with respect shall cause OFSA to maintain the Subservicer Account or a comparable Contract secured account, and shall cause any other Subservicer to maintain an account comparable to the Subservicer Account, to which Obligors shall have been directed to remit payments in respect of the Contracts. If the Subservicer Account or any comparable account maintained by a new or used Boat that it services Subservicer is terminated for itself or others, so long as (a) the maturity of such Contract would not be extended beyond the 180th day any reason prior to the Certificate Final Scheduled Distribution Date establishment of, and (b) notification to Obligors to remit payments to, a replacement servicing account comparable to the deferralSubservicer Account, reschedulingthe Master Servicer shall promptly, extension and in any event within 30 days of termination of such Subservicer Account or other modification comparable account, establish a Lockbox Account pursuant to a Lockbox Agreement and notify all Obligors to remit payments in respect of the terms of the Contract would not constitute a cancellation of Contracts to such Contract and the creation of a new installment sale contract or direct loan. If, as a result of deferring, rescheduling or extending of payments or any other modification, such deferring, rescheduling, extension or modification breaches any of the terms of the preceding sentence, then the Servicer shall be obligated to purchase such Contract pursuant to Section 4.07 hereof on the Deposit Date immediately following the date on which it became aware or received written notice from the Trust of such failure. The Servicer may, in accordance with its customary servicing practices and procedures, in its good faith judgment, waive any Late Fees that may be due or payable under any Contract. Notwithstanding the foregoing, in connection with the settlement by the Servicer of a defaulted Contract, the Servicer may forgive a portion of such Contract, if in its discretion it believes that the acceptance of the settlement proceeds from the related Obligor would result in the Trust's receiving a greater amount of collections than the Net Liquidation Proceeds that would result from repossessing and liquidating the related Financed BoatLockbox Account.