Ownership by the Depositor of Trust Certificates Clause Samples
The "Ownership by the Depositor of Trust Certificates" clause establishes that the depositor retains legal ownership of the trust certificates issued by the trust. In practice, this means that even though the trust may issue certificates representing interests in its assets, these certificates are held by the depositor unless and until they are transferred or sold to other parties. This clause ensures that the depositor maintains control over the trust certificates, which can be important for regulatory, accounting, or operational reasons. Its core function is to clarify the initial ownership of the certificates and prevent disputes over entitlement or control.
Ownership by the Depositor of Trust Certificates. The Depositor shall receive on the Closing Date in accordance with Section 3.02 beneficial and record ownership of Trust Certificates representing 100% of the Certificate Balance. Notwithstanding any other provision of this Agreement to the contrary, the Depositor may not transfer any Trust Certificate prior to payment in full of the Notes unless the Rating Agency Condition has been satisfied with respect to such transfer.
Ownership by the Depositor of Trust Certificates. The Depositor shall receive on the Closing Date in accordance with Section 3.02 and shall thereafter retain beneficial and record ownership of Trust Certificates representing 100% of the Certificate Balance. Notwithstanding any other provision of this Agreement to the contrary, any attempted transfer of any Trust Certificate that would reduce such interest of the Depositor below 100% of the Certificate Balance shall be void. The Owner Trustee shall cause one Trust Certificate issued to the Depositor (representing 100% of the Certificate Balance) to bear a legend stating “THIS CERTIFICATE IS NON-TRANSFERABLE.” Notwithstanding the foregoing, upon a dissolution or termination of the Depositor, the Trust Certificates held by it shall be distributed to NMAC without regard to the provisions of Section 3.02 or this Section 3.10.
Ownership by the Depositor of Trust Certificates. The Depositor shall receive on the Closing Date in accordance with Section 3.02 beneficial and record ownership of a Trust Certificate representing the entire beneficial interest in the Issuing Entity.
Ownership by the Depositor of Trust Certificates. (a) On the Closing Date, the Depositor will retain one or more Trust Certificates representing at least 1% of the Initial Certificate Balance and will thereafter retain beneficial and record ownership of Trust Certificates representing at least 1% of the Certificate Balance. Any attempted transfer of the Depositor's Trust Certificate that would reduce such interest of the Depositor below 1% of the Certificate Balance will be void. The Owner Trustee will cause any Trust Certificate issued to the Depositor to contain a legend stating "THIS CERTIFICATE IS NON-TRANSFERABLE".
(b) The Trust Certificate issued to the Depositor as described in Section 3.10(a) will contain such additional language providing that all amounts to be distributed pursuant 5.06(b) of the Transfer and Servicing Agreement will be distributed to the Holder of such Certificate.