Original Class B Principal Balance Clause Samples

The "Original Class B Principal Balance" clause defines the initial principal amount allocated to the Class B tranche of a structured finance security or similar financial instrument. In practice, this amount is set at the time the security is issued and serves as the reference point for tracking principal payments, losses, or allocations specific to Class B investors. By clearly establishing this original balance, the clause ensures accurate accounting and fair distribution of cash flows or losses among different classes, thereby promoting transparency and reducing disputes over payment priorities.