Cancellation of Closed-End Exchange Notes Clause Samples
The "Cancellation of Closed-End Exchange Notes" clause defines the conditions and procedures under which closed-end exchange notes can be cancelled before their scheduled maturity. Typically, this clause outlines the specific events or actions—such as default, early redemption, or regulatory requirements—that may trigger cancellation, and details the steps both the issuer and noteholders must follow in such cases. Its core practical function is to provide a clear framework for ending the obligations associated with these notes, thereby protecting both parties from uncertainty and ensuring that the process is handled in an orderly and predictable manner.
Cancellation of Closed-End Exchange Notes. In connection with an optional redemption or payment in full of a Closed-End Exchange Note pursuant to the applicable Servicing Supplement or Exchange Note Supplement, the Exchange Noteholder, by notice to the Borrower, the Closed-End Servicer, the Closed-End Collateral Agent and the Closed-End Administrative Agent, may request that the Borrower cancel the Closed-End Exchange Note. Upon such request, the Borrower will, pursuant to this Section 6.8, cancel the Closed-End Exchange Note and, upon cancellation, if no other Closed-End Exchange Notes related to such Reference Pool are Outstanding, the applicable Reference Pool will be deemed to no longer exist and the Closed-End Units included in such Reference Pool will be deemed to be (without further action of any Person) reallocated to the Warehouse Facility Pool.