Common use of Net WAC Clause in Contracts

Net WAC. RESERVE FUND AND CLASS A-2/A-3 NET WAC PASS-THROUGH AMOUNTS. (a) The Trustee shall establish a Net WAC Reserve Fund on behalf of the holders of the Offered Certificates. The Net WAC Reserve Fund must be an Eligible Account. The Net WAC Reserve Fund shall be entitled "Net WAC Reserve Fund, U.S. Bank National Association as Trustee for the benefit of holders of Bear ▇▇▇▇▇▇▇ Asset Backed Securities I LLC, Asset-Backed Certificates, Series 2004-AC6, Class A-1, Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class M-1, Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3". On the Closing Date, the Depositor will deposit, or cause to be deposited, into the Net WAC Reserve Fund $5,000. On each Distribution Date as to which there is a Net WAC Rate Carryover Amount payable to any Class of Certificates, the Trustee shall, in accordance with the Remittance Report for such Distribution Date, deposit the amounts pursuant to paragraphs 8 through 14 of clause third of Section 6.04(a) into the Net WAC Reserve Fund and the Trustee has been directed by the Class C Certificateholder to distribute such amounts to the Holders of the Offered Certificates in the amounts and priorities set forth in clause third of Section 6.04(a). (b) The Net WAC Reserve Fund is an "outside reserve fund" within the meaning of Treasury Regulation ss.1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any REMIC. The Trustee on behalf of the Trust shall be the nominal owner of the Net WAC Reserve Fund. The Class C Certificateholders shall be the beneficial owners of the Net WAC Reserve Fund, subject to the power of the Trustee to transfer amounts under Section 6.04(a). Amounts in the Net WAC Reserve Fund shall be held either uninvested in a trust or deposit account of the Trustee with no liability for interest or other compensation thereof or, at the direction of the Majority Class C Certificateholder, be invested in Permitted Investments that mature no later than the Business Day prior to the next succeeding Distribution Date. All net income and gain from such investments shall be distributed to the Majority Class C Certificateholder, not as a distribution in respect of any interest in any REMIC, on such Distribution Date. All amounts earned on amounts on deposit in the Net WAC Reserve Fund shall be taxable to the Majority Class C Certificateholder. Any losses on such investments shall be deposited in the Net WAC Reserve Fund by the Majority Class C Certificateholder out of its own funds immediately as realized. In the event that the Majority Class C Certificateholder shall fail to provide investment instructions to the Trustee, the amounts on deposit in the Net WAC Reserve Fund shall be held uninvested. (c) For federal tax return and information reporting, the right of the holders of the Offered Certificates to receive payments from the Net WAC Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be assigned a value of zero. (d) With respect to each Distribution Date as to which there is a positive Class A-2/A-3 Net WAC Pass-Through Amount, such amount shall be payable from the Holders of the Class A-2 Certificates to the Holders of the Class A-3 Certificates. Accordingly, on each such Distribution Date the Trustee shall deposit into the Net WAC Reserve Fund the Class A-2/A-3 Net WAC Pass-Through Amount, rather than distributing such amount to the Class A-2 Certificateholders. Notwithstanding the foregoing, such Class A-2/A-3 Net WAC Pass-Through Amount shall for federal, state and local tax purposes be deemed distributed in respect of REMIC III Regular Interest A-2 and the Class A-2 Certificates. On each such Distribution Date, the Trustee shall hold the Class A-2/A-3 Net WAC Pass-Through Amount for the benefit of the Holders of the Class A-3 Certificates, and shall distribute such amount to the Holders of the Class A-3 Certificates. Payments to the Holders of the Class A-3 Certificates of any Class A-2/A-3 Net WAC Pass-Through Amount will not be payments with respect to a "regular interest" in a REMIC within the meaning of Code Section 860G(a)(1). By accepting a Class A-2 Certificate, each Class A-2 Certificateholder thereby agrees to direct the Trustee, and the Trustee hereby is directed, to deposit into the Net WAC Reserve Fund any Class A-2/A-3 Net WAC Pass-Through Amount rather than distributing such amounts to the Class A-2 Certificateholders and further agrees that such direction is given for good and valuable consideration, the receipt and sufficiency of which is acknowledged by such acceptance. By accepting a Class A-2 Certificate, each Class A-2 Certificateholder acknowledges that any such Class A-2/A-3 Net WAC Pass-Through Amount shall for federal, state and local tax purposes be deemed distributed in respect of REMIC III Regular Interest A-2 and the Class A-3 Certificates. By accepting a Class A-3 Certificate, each Class A-3 Certificateholder acknowledges that for federal, state and local tax purposes any payments of such Class A-2/A-3 Net WAC Pass-Through Amount shall not be payments with respect to a "regular interest" in a REMIC within the meaning of Code Section 860G(a)(1).

Net WAC. RESERVE FUND AND CLASS A-2/A-3 NET WAC PASS-THROUGH AMOUNTS. (a) The Trustee shall establish a Net WAC Reserve Fund on behalf of the holders of the Offered Certificates. The Net WAC Reserve Fund must be an Eligible Account. The Net WAC Reserve Fund shall be entitled "Net WAC Reserve Fund, U.S. Bank National Association as Trustee for the benefit of holders of Bear Stearns Asset Backe▇ ▇▇▇▇▇▇▇ Asset Backed Securities ities I LLC, Asset-Backed Certificates, Series 2004-AC6AC7, Class A-1, Class A-2, Class A-3, Cla▇▇ ▇-▇, ▇▇▇▇▇ ▇-▇, Class M-1, Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3". On the Closing Date, the Depositor will deposit, or cause to be deposited, into the Net WAC Reserve Fund $5,000. On each Distribution Date as to which there is a Net WAC Rate Carryover Amount payable to any Class of Certificates, the Trustee shall, in accordance with the Remittance Report for such Distribution Date, deposit the amounts pursuant to paragraphs 8 through 14 of clause third THIRD of Section 6.04(a) into the Net WAC Reserve Fund and the Trustee has been directed by the Class C Certificateholder to distribute such amounts to the Holders of the Offered Certificates in the amounts and priorities set forth in clause third THIRD of Section 6.04(a). (b) The Net WAC Reserve Fund is an "outside reserve fund" within the meaning of Treasury Regulation ss.1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any REMIC. The Trustee on behalf of the Trust shall be the nominal owner of the Net WAC Reserve Fund. The Class C Certificateholders shall be the beneficial owners of the Net WAC Reserve Fund, subject to the power of the Trustee to transfer amounts under Section 6.04(a). Amounts in the Net WAC Reserve Fund shall be held either uninvested in a trust or deposit account of the Trustee with no liability for interest or other compensation thereof or, at the direction of the Majority Class C Certificateholder, be invested in Permitted Investments that mature no later than the Business Day prior to the next succeeding Distribution Date. All net income and gain from such investments shall be distributed to the Majority Class C Certificateholder, not as a distribution in respect of any interest in any REMIC, on such Distribution Date. All amounts earned on amounts on deposit in the Net WAC Reserve Fund shall be taxable to the Majority Class C Certificateholder. Any losses on such investments shall be deposited in the Net WAC Reserve Fund by the Majority Class C Certificateholder out of its own funds immediately as realized. In the event that the Majority Class C Certificateholder shall fail to provide investment instructions to the Trustee, the amounts on deposit in the Net WAC Reserve Fund shall be held uninvested. (c) For federal tax return and information reporting, the right of the holders of the Offered Certificates to receive payments from the Net WAC Reserve Fund in respect of any Net WAC Rate Carryover Amount shall be assigned a value of zero. (d) With respect to each Distribution Date as to which there is a positive Class A-2/A-3 Net WAC Pass-Through Amount, such amount shall be payable from the Holders of the Class A-2 Certificates to the Holders of the Class A-3 Certificates. Accordingly, on each such Distribution Date the Trustee shall deposit into the Net WAC Reserve Fund the Class A-2/A-3 Net WAC Pass-Through Amount, rather than distributing such amount to the Class A-2 Certificateholders. Notwithstanding the foregoing, such Class A-2/A-3 Net WAC Pass-Through Amount shall for federal, state and local tax purposes be deemed distributed in respect of REMIC III Regular Interest A-2 and the Class A-2 Certificates. On each such Distribution Date, the Trustee shall hold the Class A-2/A-3 Net WAC Pass-Through Amount for the benefit of the Holders of the Class A-3 Certificates, and shall distribute such amount to the Holders of the Class A-3 Certificates. Payments to the Holders of the Class A-3 Certificates of any Class A-2/A-3 Net WAC Pass-Through Amount will not be payments with respect to a "regular interest" in a REMIC within the meaning of Code Section 860G(a)(1). By accepting a Class A-2 Certificate, each Class A-2 Certificateholder thereby agrees to direct the Trustee, and the Trustee hereby is directed, to deposit into the Net WAC Reserve Fund any Class A-2/A-3 Net WAC Pass-Through Amount rather than distributing such amounts to the Class A-2 Certificateholders and further agrees that such direction is given for good and valuable consideration, the receipt and sufficiency of which is acknowledged by such acceptance. By accepting a Class A-2 Certificate, each Class A-2 Certificateholder acknowledges that any such Class A-2/A-3 Net WAC Pass-Through Amount shall for federal, state and local tax purposes be deemed distributed in respect of REMIC III Regular Interest A-2 and the Class A-3 Certificates. By accepting a Class A-3 Certificate, each Class A-3 Certificateholder acknowledges that for federal, state and local tax purposes any payments of such Class A-2/A-3 Net WAC Pass-Through Amount shall not be payments with respect to a "regular interest" in a REMIC within the meaning of Code Section 860G(a)(1).