Common use of SECTION Procedure for Decreasing the Invested Amount Clause in Contracts

SECTION Procedure for Decreasing the Invested Amount. On any Business Day during the Revolving Period, upon the written request of the Master Servicer or the Company, the Invested Amount may be reduced (a "Decrease") by the distribution, ratably on the basis of their Pro Rata Shares, to the VFC Certificateholders in reduction of the Invested Amount allocated to such Funding Period of some or all of the funds on deposit in the Series 1998-1 Principal Collection Sub-subaccount on such day; provided that (i) the Master Servicer or the Company shall have given the Trustee and the Agent irrevocable written notice (effective upon receipt) thereof, prior to 1:00 p.m., New York City time, on the third Business Day preceding the date of such Decrease (unless the Funding Period Rate with respect to such Funding Period is the Applicable Base Rate, in which case such notice need only be received prior to 1:00 p.m., New York City time, on the Business Day preceding the date of such Decrease), which notice shall state the amount of such Decrease; (ii) the minimum amount of such Decrease shall be $500,000; and (iii) if such Business Day is not a Funding Period Settlement Date or if the amount of such Decrease exceeds the sum of the aggregate Invested Amount allocated to Eurodollar Periods ending on such Business Day, then no payment in reduction of the Invested Amount allocated to any Eurodollar Periods shall be made in connection with such Decrease unless, concurrently with such payment, the Master Servicer or the Company shall have paid to the VFC Certificateholders all amounts due and payable pursuant to Section 2.8, if any. Funds in respect of any Decrease shall be remitted by the Trustee to the Agent at the Agent's Account for remittance to the applicable VFC Certificateholders. a) If on any day the Commitment of any VFC Certificateholder is reduced or terminated (other than in connection with the termination of the Revolving Period) and after giving effect to such reduction or termination, the aggregate portion of the Invested Amount allocated to the VFC Certificates held by such VFC Certificateholder exceeds the amount of such VFC Certificateholder's Commitment, then the Company shall, on the next Funding Period Settlement Date with respect to any portion of the Invested Amount allocated to the VFC Certificates held by such VFC Certificateholder, and on each such Funding Period Settlement Date thereafter until the aggregate portion of the Invested Amount allocated to the VFC Certificates held by such VFC Certificateholder is equal to or less than the amount of such VFC Certificateholder's Commitment, effect a mandatory Decrease of the Invested Amount by distribution to the applicable VFC Certificateholder of an amount equal to the least of (i) the portion of the Invested Amount allocated to the Funding Period then ending that is also allocated to the VFC Certificates held by such VFC Certificateholder, (ii) the excess of the aggregate portion of the Invested Amount allocated to the VFC Certificates held by such VFC Certificateholder over the amount of such VFC Certificateholder's Commitment and (iii) the funds on deposit in the Series 1998-1 Principal Collection Sub- subaccount on such day. The Company or the Master Servicer shall give the Trustee, the Agent and the applicable VFC Certificateholder irrevocable written notice of such Decrease (effective upon receipt), prior to 1:00 p.m., New York City time, on the Business Day preceding the date of such Decrease, which notice shall state the amount of such Decrease. a) Simultaneously with any such Decrease during the Revolving Period, the Subordinated Certificate Amount shall be reduced by an amount (the "Subordinated Certificate Reduction Amount") such that after giving effect to such Decrease, the Allocated Receivables Amount is not less than the Target Receivables Amount. During the Revolving Period, after the distribution described in subsection (a) or (b) above, as applicable, has been made, and the Subordinated Certificate Amount has been reduced by the Subordinated Certificate Reduction Amount, a distribution may be made to the holder of the Subordinated Certificate out of remaining funds on deposit in the Series 1998-1 Principal Collection Sub-subaccount in an amount equal to the lesser of (x) the Subordinated Certificate Reduction Amount and (y) the amount of such remaining funds on deposit in the Series 1998-1 Principal Collection Sub- subaccount. a) Any reduction in the Invested Amount on any Business Day (except for that portion of a reduction on a Funding Period Settlement Date in an amount not exceeding the portion of the Invested Amount allocated by the Trustee (based upon the instructions of the Master Servicer) to the applicable Funding Period) shall be allocated by each applicable VFC Certificateholder (with notice of such allocation to the Master Servicer, the Trustee and the Agent) among outstanding Funding Periods so as to minimize amounts payable pursuant to Section 2.8, if any, so long as such allocation is not, in the reasonable judgment of such VFC Certificateholder, otherwise disadvantageous to such VFC Certificateholder.