Early Amortization Events Clause Samples
The Early Amortization Events clause defines specific circumstances under which the scheduled repayment of principal on a financial instrument, such as an asset-backed security, is accelerated ahead of the original timeline. Typically, these events may include triggers like a decline in asset performance, breaches of financial covenants, or defaults by the underlying obligors. By specifying these triggers, the clause protects investors by ensuring that cash flows are redirected to repay principal sooner, thereby mitigating risk in the event of deteriorating asset quality or other adverse developments.
Early Amortization Events. In addition to the events identified as Early Amortization Events in Article XII of the Indenture, the occurrence of any of the following events (each, an “Early Amortization Event”) shall result in an early amortization event for the Series [•] Notes:
(a) if the Quarterly Excess Spread Percentage is less than the Required Excess Spread Percentage; or
(b) a failure by Transferor under the Transfer Agreement to convey Receivables in Additional Accounts within five Business Days after the day on which it is required to convey such Receivables pursuant to Section 2.11(a) of the Transfer Agreement or, if applicable, Section 2.15(c) of the Transfer Agreement; or
(c) if any Servicer Default occurs which would have a material adverse effect on the Series [•] Noteholders; or
(d) the failure to pay the Notes in full on the Expected Final Payment Date; or
(e) the occurrence of an Event of Default and acceleration of the Series [•] Notes pursuant to Article VII of the Indenture; or
(f) (i) failure on the part of Transferor to make any payment or deposit required to be made by it by the terms of the Transfer Agreement on or before the date occurring five Business Days after the date such payment or deposit is required to be made therein or (ii) failure of the Transferor duly to observe or perform in any material respect any of its covenants or agreements set forth in the Transfer Agreement, which failure has a material adverse effect on the Series [•] Noteholders and which continues unremedied for a period of sixty days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series [•] Notes; or
(g) any representation or warranty made by Transferor in the Transfer Agreement or any information contained in an account schedule required to be delivered by it pursuant to the Transfer Agreement shall prove to have been incorrect in any material respect when made or when delivered, which continues to be incorrect in any material respect for a period of sixty days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Noteholder of the Series [•] Notes and as a result of which the interests of the Series [•] Noteholders are materially and adversely aff...
Early Amortization Events. SECTION 6.1
Early Amortization Events. 59 SECTION 7.02. Additional Rights upon the Occurrence of Certain Events........................ 60
Early Amortization Events. If any one of the following events shall occur:
(a) any of the Seller, NITC, NIC or NFC shall file a petition commencing a voluntary case under any chapter of the federal bankruptcy laws; or the Seller or NFC shall file a petition or answer or consent seeking reorganization, arrangement, adjustment or composition under any other similar applicable federal law, or shall consent to the filing of any such petition, answer or consent; or the Seller or NFC shall appoint, or consent to the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of it or of any substantial part of its property; or the Seller or NFC shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due;
(b) any order for relief against any of the Seller, NITC, NIC or NFC shall have been entered by a court having jurisdiction in the premises under any chapter of the federal bankruptcy laws, and such order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order by a court having jurisdiction in the premises shall have been entered approving as properly filed a petition seeking reorganization, arrangement, adjustment, or composition of the Seller or NFC under any other similar applicable federal law, and such decree or order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order of a court having jurisdiction in the premises for the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or insolvency of the Seller or NFC of any substantial part of their property, or for the winding up or liquidation of their affairs, shall have been entered, and such decree or order shall have remained in force undischarged or unstayed for a period of 120 days; or
(c) the Master Trust shall become an "investment company" within the meaning of the Investment Company Act of 1940, as amended, and shall not be exempt from compliance with such Act; then, subject to applicable law, and after the applicable grace period, if any, an amortization event (an "Early Amortization Event") shall occur without any notice or other action on the part of the Master Trust Trustee, the Certificateholders or any other Beneficiary, immediately upon the occurrence of such event.
Early Amortization Events. 31 SECTION 6.01
Early Amortization Events. Unless modified with respect to ------------------------- any Series of Investor Certificates by the Supplement for such Series, if any one of the following events shall occur:
(a) the Bank shall consent or fail to object to the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceeding of or relating to the Bank or of or relating to all or substantially all of its property, or a decree or order of a court, agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceeding, or for the winding-up or liquidation of its affairs, shall have been entered against the Bank; or the Bank shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations;
(b) the Transferor shall consent or fail to object to the appointment of a bankruptcy trustee, conservator, receiver or liquidator in any bankruptcy proceeding, insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceeding of or relating to the Transferor or of or relating to all or substantially all of its property, or a decree or order of a court, agency or supervisory authority having jurisdiction in the premises for the appointment of a bankruptcy trustee, conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceeding, or for the winding-up or liquidation of its affairs, shall have been entered against the Transferor or an action seeking any such decree or order shall have been commenced and, notwithstanding an objection by the Transferor, shall have remained undischarged or unstayed for a period of sixty (60) days; or the Transferor shall admit in writing its inability to pay its debts generally as they become due, file or consent or fail to object (or object without dismissal of any such filing within sixty (60) days of such filing or the earlier entry of any order providing for such relief) to the filing of a petition to take advantage of any applicable bankruptcy, insolvency or reorganization statute, make an assignment for the benefit of its credit...
Early Amortization Events. If any one of the following events shall occur with respect to the Series 20[ ]-[ ] Notes:
Early Amortization Events. Each of the following shall constitute an "Early Amortization Event":
Early Amortization Events. (a) In addition to the events identified as Early Amortization Events in Section 11.01 of the Indenture, the occurrence of any of the following events (each, an “Early Amortization Event”) will result in an early amortization event for the CHASEseries Notes:
(i) if the average Excess Spread Percentage for any three consecutive Monthly Periods is less than the Required Excess Spread Percentage;
(ii) if (x) the Issuing Entity fails to add additional Collateral to Asset Pool One or (y) the Invested Amount of an existing Asset Pool One Collateral Certificate is not increased when either action is required pursuant to the Asset Pool One Supplement;
(iii) if any Master Owner Trust Servicer Default occurs which would have a material adverse effect on the CHASEseries Noteholders; or
(iv) if (x) (A) any Asset Pool One Restriction Event shall have occurred or (B) any Transfer Restriction Event shall have occurred pursuant to Section 2.12 of the Receivables Purchase Agreement and (y)
(1) the Asset Pool One Pool Balance for the Monthly Period in which such Asset Pool One Restriction Event or Transfer Restriction Event shall have occurred or any Monthly Period thereafter as determined with respect to each Monthly Period on the following Determination Date, calculated without giving effect to (I) the Invested Amount of any Asset Pool One Collateral Certificate with respect to which an Asset Pool One Restriction Event or Transfer Restriction Event has occurred and (II) any Asset Pool One Principal Receivables arising in any Asset Pool One Account with respect to which an Asset Pool One Restriction Event or Transfer Restriction Event has occurred, does not equal or exceed the Asset Pool One Minimum Pool Balance for such Monthly Period or (2) the Asset Pool One Transferor Amount for the Monthly Period in which such Asset Pool One Restriction Event or Transfer Restriction Event shall have occurred or any Monthly Period thereafter as determined with respect to each Monthly Period on the following Determination Date, calculated without giving effect to (I) the Invested Amount of any Asset Pool One Collateral Certificate with respect to which an Asset Pool One Restriction Event or Transfer Restriction Event has occurred and (II) any Asset Pool One Principal Receivables arising in any Asset Pool One Account with respect to which an Asset Pool One Restriction Event or Transfer Restriction Event has occurred, does not equal or exceed the Asset Pool One Required Transferor Amount ...
Early Amortization Events. 56 SECTION 9.02. Additional Rights Upon the Occurrence of Certain Events.......58 ARTICLE X Service Defaults