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Exhibit 10(b)

Execution Copy

AMENDMENT NO. 17
TO
RECEIVABLES PURCHASE AGREEMENT

     THIS AMENDMENT NO. 17 TO RECEIVABLES PURCHASE AGREEMENT (this “Amendment”) dated as of September 3, 2009, is entered into among CONSUMERS RECEIVABLES FUNDING II, LLC (“Seller”), CONSUMERS ENERGY COMPANY, in its capacity as Servicer (in such capacity, the “Servicer”), FALCON ASSET SECURITIZATION COMPANY LLC (“Falcon”), and JPMORGAN CHASE BANK, N.A. (as successor by merger to Bank One, NA (Main Office Chicago)) (“JPMorgan”), as a Financial Institution and as Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used herein without definition shall have the meanings ascribed thereto in the “Purchase Agreement” referred to below.

PRELIMINARY STATEMENTS

          A. Reference is made to that certain Receivables Purchase Agreement dated as of May 22, 2003 among Seller, Servicer, Falcon, JPMorgan and the Administrative Agent (as amended prior to the date hereof and as the same may be further amended, restated, supplemented or modified from time to time, the “Purchase Agreement”).

          B. The parties hereto have agreed to amend certain provisions of the Purchase Agreement upon the terms and conditions set forth herein.

     SECTION 1. Amendment. Subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the parties hereto hereby agree to amend the Purchase Agreement as follows:

          (a) Section 7.1(u) of the Purchase Agreement is deleted and replaced with the following:

          (u) Certification of Receivables Classification. In connection with the delivery of each Monthly Report, the Servicer shall certify to the Administrative Agent that it has made diligent inquiry and that the accounts receivable included in the such report as Receivables are identified on the books and records of the Originator and the Seller with the account code “Account 1460000 Customer Receivables”.

          (b) Section 9.1(f) of the Purchase Agreement is amended to delete clause (iii) and replace it with the following:

          (iii) the average of the Past Due Ratios as of the end of such Accrual Period and the two preceding Accrual Periods shall exceed (A) 13.0% for any Accrual Period occurring in May through October of any calendar year, (B) 11.0% for any Accrual Period occurring in November of any calendar year or (C) 10.0% for any Accrual Period occurring in December through April of any calendar year

 


 

          (c) Exhibit I to the Purchase Agreement is hereby amended to delete the definitions “Concentration Limit”, “Dilution Ratio”, “Net Receivables Balance” and “Receivable” and replace them with the following:

               “Concentration Li


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