Common use of Distribution and Application of Collections Clause in Contracts

Distribution and Application of Collections. The Servicer shall set aside on its books for the account of the Seller and each Owner their respective allocable shares of the Collections of Receivables in accordance with Sections 2.05, 2.06, 2.07 and 2.08; provided, however, that if required by Section 2.05, 2.06 or 2.07 or otherwise instructed by the Agent following a Transition Event, the Servicer shall segregate such Collections in accordance with Section 6.04. The Servicer shall as soon as practicable following receipt turn over to the Seller the collections of any receivable or other indebtedness owing to the Seller which is not a Receivable, less, in the event the Seller is not the Servicer, all reasonable and appropriate out-of-pocket costs and expenses of such Servicer of servicing, collecting and administering any such receivable or other indebtedness to the extent not covered by the Servicing Fee received by it. Any payment by an Obligor in respect of any indebtedness owed by it to the Seller shall, except as otherwise specified by such Obligor or otherwise required by contract or law or by instruction of the Agent, be applied as a Collection of any Receivable of such Obligor (in the order of the age of such Receivables, starting with the oldest such Receivable) to the extent of any amounts then due and payable thereunder before being applied to any other receivable or other indebtedness (other than a Receivable) of such Obligor.