Class R Certificates Clause Samples

The 'Class R Certificates' clause defines the rights and characteristics of a specific class of certificates issued in a securitization transaction, typically representing the residual or equity interest in the underlying asset pool. These certificates often do not receive scheduled principal or interest payments like other classes, but instead are entitled to any remaining cash flows after all other obligations have been met. The clause clarifies the role of Class R holders, such as their rights to excess cash, their responsibilities for certain tax matters, or their ability to direct certain actions. Its core function is to allocate the residual economic interests and associated risks in the securitization structure, ensuring clarity for all parties regarding who benefits from or is responsible for the transaction's residual outcomes.