Sale Without Recourse. (a) The sale of the Participation Interest hereunder shall, except to the extent specified in Section 5.06 hereof, be made without recourse to the Seller with respect to any loss arising from Defaulted Receivables, provided, that nothing contained herein shall limit the rights of the Buyer provided in Section 2.04, Article V, Section 6.04 and Articles VII and XI hereof. (b) This Agreement also constitutes a security agreement under the UCC. The Seller hereby grants to the Buyer on the terms and conditions of this Agreement a first priority security interest in and against all of the Seller's right, title and interest in and to the Purchased Receivables and the proceeds thereof for the purposes of securing the obligations of the Seller and the rights of the Buyer under this Agreement.
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Sale Without Recourse. (a) The sale of the Participation Interest hereunder shall, except to the extent specified in Section 5.06 hereof, be made without recourse to the Seller with respect to any loss arising from Defaulted Receivables, provided, -------- that nothing contained herein shall limit the rights of the Buyer provided in Section 2.04, Article V, Section 6.04 and Articles VII and XI hereof.
(b) This Agreement also constitutes a security agreement under the UCC. The Seller hereby grants to the Buyer on the terms and conditions of this Agreement a first priority security interest in and against all of the Seller's right, title and interest in and to the Purchased Receivables and the proceeds thereof for the purposes of securing the obligations of the Seller and the rights of the Buyer under this Agreement.
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