Common use of Effect of Section 941 Rules Clause in Contracts

Effect of Section 941 Rules. The sponsor will be required to adjust the economic interest it retains to the extent necessary to comply with Section 941 Rules upon the Section 941 Effective Date and thereafter. Section 12.02(c) shall not, however, be construed to require the sponsor to retain any greater economic interest in the credit risk of the financial assets than is required to comply with the FDIC Rule and other Applicable Law. Accordingly, upon the Section 941 Effective Date and thereafter, the sponsor shall be entitled to adjust the amount of credit risk that it retains, or the terms under which such credit risk is retained, to the greatest extent elected by the sponsor, so long as the sponsor’s retention shall be in compliance with Applicable Law. Within a reasonable time after the sponsor has so adjusted the amount or terms of the credit risk it retains, the sponsor shall give notice thereof to the Securityholders, and each of the Indenture Trustee, the Depositor and Mechanics Bank is authorized and entitled to amend Section 12.02(c), in accordance with and to the extent the issuing entity determines necessary or appropriate, to reflect the requirements of the Section 941 Rules.