Escrow and Income after Event of Default Clause Samples
The 'Escrow and Income after Event of Default' clause outlines how funds and income are managed if a default occurs under the agreement. Typically, it requires that any income generated from the secured assets, or payments otherwise due to the defaulting party, be deposited into an escrow account controlled by a neutral third party or the non-defaulting party. This ensures that such funds are preserved and not misused while the default is being resolved. The core function of this clause is to protect the interests of the non-defaulting party by securing income streams and preventing the defaulting party from accessing or dissipating funds that may be needed to satisfy obligations or damages resulting from the default.
Escrow and Income after Event of Default. After the occurrence and during the continuance of an Event of Default, (a) all funds received on or in connection with a Purchased Loan shall be received and held by the Seller, Servicer and each Subservicer in trust for the benefit of the Agent on behalf of the Buyers as owner of the Purchased Loans, and (b) neither the Seller nor Servicer shall be deemed to have any rights or ownership interest in such funds prior to their being remitted to the Agent on behalf of the Buyers.
Escrow and Income after Event of Default. After the occurrence and during the continuance of an Event of Default, (i) Seller shall cause Servicer and any Subservicers to deposit all Income, excluding escrow payments, into the Income Account within two Business Days of receipt by Servicer or such Subservicer (ii) all funds received on or in connection with a Purchased Loan shall be received and held by Seller, Servicer and each Subservicer in trust for the benefit of the Administrative Agent on behalf of the Buyers as owner of the Purchased Loans and (iii) neither Seller nor Servicer shall be deemed to have any rights or ownership interest in such funds prior to their being remitted to the Administrative Agent on behalf of the Buyers.
Escrow and Income after Event of Default. After the occurrence and during the continuance of an Event of Default, (a) all funds received on or in connection with a
Escrow and Income after Event of Default. After the occurrence and during the continuance of an Event of Default, (a) all funds received on or in connection with a Purchased Loan shall be received and held by the Seller, Servicer and each Subservicer in trust for the benefit of the Agent on behalf of the Buyers as owner of the Purchased Loans, and (b) neither the Seller nor Servicer shall be deemed to have any rights or ownership interest in such funds prior to their being remitted to the Agent on behalf of the Buyers. MASTER REPURCHASE AGREEMENT – Page 86 13312-786/M/I Financial Warehouse Facility