NOTE SURETY BONDS Clause Samples

The "Note Surety Bonds" clause requires a party, typically a contractor or borrower, to provide a surety bond as a guarantee for the performance of obligations under a promissory note or similar financial instrument. In practice, this means that a third-party surety company issues a bond ensuring that the noteholder will be compensated if the principal fails to meet payment or performance terms. This clause is essential for mitigating the risk of default, providing financial security to the noteholder, and ensuring that contractual obligations are fulfilled even if the original party cannot perform.
NOTE SURETY BONDS. (a) If for any Note Distribution Date for a Class of Notes, a Note Surety Bond Payment is required to be made under the terms of the related Note Surety Bond, the Indenture Trustee shall submit the notice in the form of Attachment I to the applicable Note Surety Bond in accordance with the terms and conditions of such Note Surety Bond in the amount of such Note Surety Bond Payment to the Surety Provider and, if one has been designated, to the fiscal agent for the Surety Provider no later than 12:00 noon, New York City time, on the Business Day prior to such Note Distribution Date. Upon receipt of payment from the Surety Provider in accordance with the terms of the applicable Note Surety Bond, the Indenture Trustee shall deposit such amount into the Note Distribution Account for distribution solely to Noteholders of the applicable Class. (b) If for any Certificate Distribution Date for a Class of Certificates, a Certificate Surety Bond Payment is required to be made under the terms of the related Certificate Surety Bond, the Eligible Lender Trustee shall submit the notice in the form of Attachment I to the applicable Certificate Surety Bond in accordance with the terms and conditions of such Certificate Surety Bond in the amount of such Certificate Surety Bond Payment to the Surety Provider and, if one has been designated, to the fiscal agent for the Surety Provider no later than 12:00 noon, New York City time, on the Business Day prior to such Certificate Distribution Date. Upon receipt of payment from the Surety Provider in accordance with the terms of the applicable Certificate Surety Bond, the Eligible Lender Trustee shall deposit such amount into the Certificate Distribution Account for distribution solely to Certificateholders of the applicable Class.
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NOTE SURETY BONDS. SECTION 10.2. Further Assurances; Surety Provider Default; etc................................................59 ARTICLE XI Miscellaneous
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Related to NOTE SURETY BONDS

  • Surety Bonds No Trustee, officer, employee or agent of the Trust shall, as such, be obligated to give any bond or surety or other security for the performance of any of his duties, unless required by applicable law or regulation, or unless the Trustees shall otherwise determine in any particular case.

  • Surety Bond (a) If a Required Surety Payment is payable pursuant to the Surety Bond with respect to any Additional Collateral Loan, the Master Servicer shall so notify the Trustee as soon as reasonably practicable and the Trustee shall promptly complete the notice in the form of Attachment 1 to the Surety Bond and shall promptly submit such notice to the Surety as a claim for a Required Surety. The Master Servicer shall upon request assist the Trustee in completing such notice and shall provide any information requested by the Trustee in connection therewith. (b) Upon receipt of a Required Surety Payment from the Surety on behalf of the Holders of Certificates, the Trustee shall deposit such Required Surety Payment in the Certificate Account and shall distribute such Required Surety Payment, or the proceeds thereof, in accordance with the provisions of Section 4.02. (c) The Trustee shall (i) receive as attorney-in-fact of each Holder of a Certificate any Required Surety Payment from the Surety and (ii) disburse the same to the Holders of such Certificates as set forth in Section 4.02.

  • Revolving Notes The Revolving Loans made by each Lender shall be evidenced by a duly executed promissory note of the Borrower to such Lender in an original principal amount equal to such Lender's Revolving Commitment Percentage of the Revolving Committed Amount and in substantially the form of Exhibit 2.1(e).

  • Credit Agreement and Notes This Agreement and the Notes executed by each party thereto;

  • Replacement Bonds In the event that any Bond is not delivered due to any occurrence, act or event beyond the control of the Depositor and of the Trustee (such a Bond being herein called a "Special Bond"), the Depositor may so certify to the Trustee and instruct the Trustee to purchase Replacement Bonds which have been selected by the Depositor having a cost and an aggregate principal amount not in excess of the cost and aggregate principal amount of the Special Bonds not so delivered. To be eligible for inclusion in the Trust, the Replacement Bonds which the Depositor selects must: (i) for Trusts containing municipal bonds, yield current interest which is exempt from taxation for federal income tax purposes and, if the Trust is a State Trust, exempt from taxation under the personal income tax law of the particular state involved; (ii) have a fixed maturity or disposition date comparable to the bonds replaced; (iii) be purchased at a price that results in a yield to maturity and in a current return, in each case as of the execution and delivery of the applicable Reference Trust Agreement, which is approximately equivalent to the yield maturity and current return of the Special Bonds which failed to be delivered and for which the Replacement Bonds are substituted; (iv) be purchased within twenty days after delivery of notice of the failed contract to the Trustee or to the Depositor, whichever occurs first and (v) be of comparable credit quality to the Special Bond which failed to be delivered. Any Replacement Bonds received by the Trustee shall be deposited hereunder and shall be subject to the terms and conditions of this Indenture to the same extent as other Bonds deposited hereunder. No such deposit of Replacement Bonds shall be made after the earlier of (i) 90 days after the date of execution and delivery of the applicable Reference Trust Agreement or (ii) the first Distribution Date to occur after the date of execution and delivery of the applicable Reference Trust Agreement. (25) Article III is hereby amended by adding the following Section 3.19: