Owner Trustee May Own the Residual Interest and Notes Sample Clauses
This clause establishes that the owner trustee is permitted to hold both the residual interest and the notes associated with a trust or securitization structure. In practice, this means the trustee, who typically manages the trust assets on behalf of beneficiaries, can also be an investor in the trust by owning its financial instruments, such as residual interests (the remaining value after obligations are paid) and notes (debt securities issued by the trust). By explicitly allowing this dual role, the clause clarifies potential conflicts of interest and ensures that the trustee's participation as an investor is authorized, thereby preventing disputes over the trustee's eligibility to hold these interests.
Owner Trustee May Own the Residual Interest and Notes. The Owner Trustee in its individual or any other capacity may become the owner or pledgee of the Residual Interest or Notes and may deal with the Initial Beneficiary, the Administrator, the Indenture Trustee and the Servicer in transactions in the same manner as it would have if it were not the Owner Trustee.