Common use of Collateral Proceeds Account Clause in Contracts

Collateral Proceeds Account. The Trustee shall, prior to the Delivery Date of the Bonds of a Series, establish the Collateral Proceeds Account for such Series into which the Trustee shall from time to time deposit all Collateral Proceeds relating to such Series (including any proceeds from any deposits to be made by the Master Servicer pursuant to the Servicing Agreement, with respect to such Series and including any proceeds from any Insurance Policies for such Series) and all proceeds transferred from the Reserve Fund or other funds pledged with respect to such Series; provided, however, that all amounts as provided by Section 4.02(12) shall be deposited in such Collateral Proceeds Account on the Delivery Date. All monies deposited on a daily basis in the Collateral Proceeds Account for a Series pursuant to this Indenture shall be held by the Trustee as part of the Trust Estate for such Series as herein provided. (a) All payments to be made from time to time by the Trustee to the Holders of Bonds of a Series out of funds in the Collateral Proceeds Account for such Series pursuant to this Indenture shall be made by the Trustee as the Paying Agent of the Depositor. (b) Monies in the Collateral Proceeds Account for a Series shall be invested and reinvested, but only in one or more Eligible Investments, by the Trustee in such manner as the Depositor shall by Depositor Order from time to time direct. All income or other gain from such investments shall be credited to such Collateral Proceeds Account, and any loss resulting from such investments shall be charged to such Collateral Proceeds Account. If any amounts invested as aforesaid shall be needed for disbursement from the Collateral Proceeds Account for a Series to make deposits to the Custodial Reserve Fund or to make the payments due to Holders of Bonds of such Series and the Depositor as set forth in the Monthly Remittance Report delivered pursuant to Section 12.09, the Trustee shall cause a sufficient amount of such investments of such Collateral Proceeds Account to be sold or otherwise converted to cash to the credit of such Collateral Proceeds Account. The Trustee shall not in any way be held liable by reason of any insufficiency in any Collateral Proceeds Account resulting from any loss on any Eligible Investment. (c) Notwithstanding any other provision of this Section 12.05, the Trustee may accept principal and interest payments on any Mortgage Collateral prior to the Due Date thereof and distribute any earnings from the investment thereof to such Due Date at the direction of the Depositor.