Common use of Payment Option Clause in Contracts

Payment Option. As an alternative to making the payments described under Section 2.2.1 and Section 2.2.2 above, in the event any Protected Asset Payment Default occurs in respect of any Protected Asset during the Protection Period with respect to such Protected Asset, the Seller may elect, with the prior written consent of the Company, to make a payment to the Company, in accordance with Section 2.6.1 below, in an amount (the “Upfront Protection Payment”) equal to (a) fifty percent (50%) of the sum of (i) the Carrying Value of such Protected Asset as of the date of such payment plus (ii) all accrued but unpaid interest on such Protected Asset (excluding any Additional Interest on such Protected Asset) as of the date of such payment less (b) the sum of (i) all Unrecovered Protection Payments in respect of such Protected Asset as of the date of such payment plus (ii) the total amount of Defaulted Payment Amounts for such Protected Asset that were applied against the Deductible. If the Seller intends to request the prior written consent of the Company to make any Upfront Protection Payment on any Protected Asset, the Seller shall provide notice thereof to the Company and the Acquiror within five (5) Business Days following the approval or deemed approval of the relevant Monthly Payment Report and failing such delivery of such notice, the Seller shall be deemed to have elected not to make such request to make any Upfront Protection Payment with respect to any Protected Asset with respect to such Monthly Payment Report.