Common use of Limitations on Sales, Substitutions and Repurchases Clause in Contracts

Limitations on Sales, Substitutions and Repurchases. The aggregate Outstanding Balance of all Loans (other than Warranty Loans that (x) fail to satisfy any criteria set forth in clause (iii) of the definition of "Eligible Loan" as of the date of acquisition of such Loan, (y) that fail to satisfy the criteria set forth in clause (iii)(j)(ii) of the definition of "Eligible Loan" as of the date of determination or (z) with respect to which the Borrower had failed to deliver the Required Loan Documents described in Section 3.2(i) within the time periods set forth therein) that were acquired by the Borrower from the Transferor or an Affiliate which are transferred by the Borrower to the Transferor or an Affiliate thereof in connection with a Substitution, a Discretionary Sale (other than a Discretionary Sale in connection with a Term Securitization) or the transfer to the Transferor pursuant to a dividend shall not exceed in the aggregate, twenty-five percent (25%) of the highest aggregate Outstanding Balance of all Loans and owned by the Borrower during the preceding period of twelve (12) calendar months (or for the first twelve (12) calendar months after the Closing Date, during the period commencing on the Closing Date).