Payment of Principal and Interest; Defaulted Interest. (a) On each Payment Date from amounts on deposit in the Payment Account (after making (x) any deposit to the Funding Account pursuant to Section 8.02(b) and (y) any deposits to the Payment Account pursuant to Section 8.02(c)(ii) and Section 8.02(c)(i)(2)), the Indenture Trustee, on behalf of the Issuer shall pay to the Noteholders and the Indenture Trustee, in its capacity as agent for the Issuer shall pay to other Persons, the amounts to which they are entitled as set forth below: (i) to the Noteholders the sum of (a) one month's interest at the Note Rate on the Security Balances of Notes immediately prior to such Payment Date and (b) any previously accrued and unpaid interest for prior Payment Dates (specify priority of Classes of Notes); (ii) (if such Payment Date is after the Funding Period,) to the Noteholders as principal on the Notes(and Variable Funding Notes,) the applicable Security Percentage of the Principal Collection Distribution Amount (and if such Payment Date is the first Payment Date following the end of the Funding Period (if ending due to an Amortization Event) or the Payment Date on which the Funding Period ends, to the Noteholders as principal on the Notes (and Variable Funding Notes) the applicable Security Percentage of the amount deposited from the Funding Account in respect of Security Principal Collections); (iii) to the Noteholders, as principal on the Notes (and Variable Funding Notes), pro rata, based on the Security Balances from the amount remaining on deposit in the Payment Account, up to the applicable Security Percentage of Liquidation Loss Amounts for the related Col- lection Period; (iv) to the Noteholders, as principal on the Notes (and Variable Funding Notes), pro rata, based on the Security Balances from the amount remaining on deposit in the Payment Account, up to the applicable Security Percentage of Carryover Loss Amounts;
Appears in 1 contract
Payment of Principal and Interest; Defaulted Interest. (a) On each Payment Date from amounts on deposit in the Payment Account with respect to Home Equity Loans (after making (x) any deposit to other than amounts deposited in the Funding Account pursuant to Section 8.02(b) and (y) any deposits to the Payment Account pursuant to Section 8.02(c)(ii) and Section 8.02(c)(i)(2)nature of prepayment charges), the Indenture TrusteePaying Agent shall pay to the Noteholders, the Certificate Paying Agent, on behalf of the Issuer shall pay to the Noteholders Certificateholders, and the Indenture Trustee, in its capacity as agent for the Issuer shall pay to other Persons, Persons the amounts to which they are entitled entitled, as set forth belowin the statements delivered to the Indenture Trustee pursuant to Section 4.01 of the Servicing Agreement, and to the Class SB Certificateholders, amounts in the nature of prepayment charges, as set forth below in the following order of priority:
(i) first, to the Class A Noteholders and the sum Variable Funding Noteholders, the Interest Distribution Amount for the Class A Notes and the Variable Funding Notes for such Payment Date, on a pro rata basis in accordance with their respective Interest Distribution Amounts;
(ii) second, to the Class A Noteholders and the Variable Funding Noteholders, as principal on the Class A Notes and Variable Funding Notes, the Principal Collection Distribution Amount with respect to the Class A Notes and the Variable Funding Notes for such Payment Date, on a pro rata basis in accordance with the outstanding Security Balances thereof;
(iii) third, to the Class A Noteholders and the Variable Funding Noteholders, as principal on the Class A Notes and Variable Funding Notes, on a pro rata basis in accordance with the outstanding Security Balances thereof, the Liquidation Loss Distribution Amount (other than any amount attributable to Excess Loss Amounts) with respect to the Home Equity Loans for such Payment Date;
(iv) fourth, to the Credit Enhancer, the amount of the premium for the Policy and any previously unpaid premiums for the Policy, with interest thereon as provided in the Insurance Agreement;
(av) one month's fifth, to the Credit Enhancer, to reimburse it for prior draws made on the Policy (other than any Excess Loss Amount) related to payments of principal and interest on the Class A Notes and the Variable Funding Notes (other than any draws related to Excess Loss Amounts) with interest thereon as provided in the Insurance Agreement;
(vi) sixth, to the Class A Noteholders and the Variable Funding Noteholders, as principal on the Class A Notes and the Variable Funding Notes, on a pro rata basis in accordance with the outstanding Security Balances thereof, the Overcollateralization Increase Amount, if any, for such Payment Date;
(vii) seventh, to the Credit Enhancer, any other amounts owed to the Credit Enhancer pursuant to the Insurance Agreement and related to the Notes;
(viii) eighth, to the Class A Noteholders and the Variable Funding Noteholders, any Net WAC Cap Shortfalls for that Payment Date and any Net WAC Cap Shortfalls for previous Payment Dates and not previously paid (together with interest thereon at the Note Rate for the related Notes (as adjusted from time to time)), on a pro rata basis in accordance with the respective amounts of Net WAC Cap Shortfalls allocated for such Payment Date and any previous Payment Dates not previously paid (with interest thereon);
(ix) ninth, to pay to the holders of the Class A Notes and the Variable Funding Notes any Relief Act Shortfalls with respect to the Home Equity Loans incurred during the related Collection Period, pro rata in accordance with any such Relief Act Shortfalls allocated to the Class A Notes and Variable Funding Notes in such Collection Period;
(x) tenth, to the Indenture Trustee, any amounts owing to the Indenture Trustee pursuant to Section 6.07 remaining unpaid; and
(xi) eleventh, any remaining amount (other than amounts in the nature of prepayment charges) to the Certificate Paying Agent on behalf of the holders of the Class SB Certificates and any amounts in the nature of prepayment charges to the Certificate Paying Agent, on behalf of the holders of the Class SB Certificates;
(a) (i) through (iii), (vi) and (viii) through (ix) that are due and required to be paid on such Payment Date and any Interest Distribution Amount remaining unpaid from any previous Payment Date have been paid and (y) pursuant to clause 3.05(a) (v) will not be paid until the full amount of interest and principal in accordance with clauses 3.05
(a) (i) through (iii) and (vi) that are due and required to be paid on such Payment Date and any Interest Distribution Amount remaining unpaid from any previous Payment Date have been paid. For purposes of the foregoing, required payments of principal on the Notes on each Payment Date pursuant to clause 3.05(a)(iii) above will include the pro rata portion allocable to the Notes of all Liquidation Loss Amounts (other than any Excess Loss Amounts) for such Payment Date and for all previous Collection Periods until paid or covered in full, to the extent not otherwise covered by a Liquidation Loss Distribution Amount, a reduction of the Overcollateralization Amount or a draw on the Policy (up to the outstanding Security Balance thereof). On the Final Scheduled Payment Date or other final Payment Date for the Notes, the amount to be paid pursuant to clause (ii) above shall be equal to the Security Balances of the Notes immediately prior to such Payment Date and (b) any previously accrued and unpaid interest for prior Payment Dates (specify priority of Classes of Notes);
(ii) (Date. Notwithstanding anything herein to the contrary, if such the final Payment Date is after the Funding Period,) to the Noteholders as principal on the Notes(and Variable Funding Notes,) the applicable Security Percentage of the Principal Collection Distribution Amount (and if such Payment Date is the first Payment Date following the end of the Funding Period (if ending due to an Amortization Event) or the Payment Date a date on which the Funding Period ends, Master Servicer has exercised its right to the Noteholders as principal on the Notes (and Variable Funding Notes) the applicable Security Percentage purchase all of the amount deposited from Home Equity Loans pursuant to Section 8.08 of the Funding Account Servicing Agreement, the priorities set forth in respect of Security Principal Collections);
clauses (iiii) to the Noteholdersthrough (iv) above shall be disregarded, as principal on the Notes (and Variable Funding Notes), pro rata, based on the Security Balances from the amount remaining amounts on deposit in the Payment Account, up Account with respect to the applicable Security Percentage of Liquidation Loss Amounts Home Equity Loans will be applied first, to pay the Interest Distribution Amount for the related Col- lection Period;
(iv) to the Noteholders, as principal on the Class A Notes (and Variable Funding Notes), on a pro ratarata basis in accordance with their respective Interest Distribution Amounts; second, based to pay principal on the Class A Notes and Variable Funding Notes on a pro rata basis in accordance with their respective Security Balances, until the Security Balances from thereof have been reduced to zero and then in accordance with the priorities set forth in clauses (iv) through (xi) above.
(b) Relief Act Shortfalls on the Home Equity Loans will be allocated to the Class A Notes and Variable Funding Notes on a pro rata basis in accordance with the amount remaining of accrued interest payable on that Class for such Payment Date, absent such reductions.
(c) On each Payment Date, the Certificate Paying Agent shall deposit in the Payment Account, up Certificate Distribution Account all amounts it received pursuant to this Section 3.05 for the purpose of distributing such funds to the Certificateholders. The amounts paid to Noteholders shall be paid in respect of the related Class or Classes of Term Notes or Variable Funding Notes, as the case may be, in accordance with the applicable percentage as set forth in paragraph (d) below. Interest will accrue on the Notes during an Interest Period, on the basis of the actual number of days in such Interest Period and a year assumed to consist of 360 days. Any installment of interest or principal, if any, payable on any Note that is punctually paid or duly provided for by the Issuer on the applicable Payment Date shall, if such Holder holds Notes of an aggregate initial Security Balance or notional amount of at least $1,000,000, be paid to each Holder of record on the preceding Record Date, by wire transfer to an account specified in writing by such Holder reasonably satisfactory to the Indenture Trustee as of the preceding Record Date or in all other cases or if no such instructions have been delivered to the Indenture Trustee, by check to such Noteholder mailed to such Holder's address as it appears in the Note Register the amount required to be distributed to such Holder on such Payment Date pursuant to such Holder's Securities; provided, however, that the Indenture Trustee shall not pay to such Holders any amount required to be withheld from a payment to such Holder by the Code.
(d) Principal of each Note shall be due and payable in full on the Final Scheduled Payment Date for such Note as provided in the related form of Note set forth in Exhibits A-1 and A-2. All principal payments on each of the Term Notes and Variable Funding Notes shall be made in accordance with the priorities set forth in paragraphs (a) and (b) above to the Noteholders entitled thereto in accordance with the related Percentage Interests represented thereby. Upon written notice to the Indenture Trustee by the Issuer, the Indenture Trustee shall notify the Person in whose name a Note is registered at the close of Carryover Loss Amounts;business on the Record Date preceding the Final Scheduled Payment Date or other final Payment Date. Such notice shall be mailed no later than five Business Days prior to such Final Scheduled Payment Date or other final Payment Date and shall specify that payment of the principal amount and any interest due with respect to such Note at the Final Scheduled Payment Date or other final Payment Date will be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for such final payment.
Appears in 1 contract
Payment of Principal and Interest; Defaulted Interest. (a) On each Payment Date (other than a Payment Date after an Event of Default and an acceleration of the Notes), from amounts on deposit in the Payment Trustee Collection Account resulting from Interest Collections, Principal Collections and prepayment penalties with respect to the Mortgage Loans in Loan Group I and investment earnings on amounts on deposit in the Trustee Collection Account with respect to Mortgage Loans in Loan Group I (after making (x) the Indenture Trustee has removed any deposit investment earnings to the Funding Account be retained by it pursuant to Section 8.02(b) and (y) 6.07, together with any deposits draw on the Policy for such Payment Date to the Payment Account pursuant be applied only to Section 8.02(c)(ii) and Section 8.02(c)(i)(2))an Insured Payment, the Indenture Trustee, on behalf Trustee shall apply the following amounts in the following order of the Issuer shall pay to the Noteholders and the Indenture Trusteepriority, in its capacity as agent for accordance with the Issuer shall pay to other Persons, the amounts to which they are entitled as set forth belowServicing Certificate:
(i) To pay any prepayment penalties on the Group I Mortgage Loans to holders of the Certificates
(ii) to pay the Enhancer the accrued and unpaid premium for the Policy and to pay the Indenture Trustee the Trustee Fee for services with respect to the Noteholders Group I Notes;
(iii) to pay accrued and unpaid interest due on the Note Balances of the Class IA-1 Notes and the Group I Variable Funding Notes, pro rata, at their respective Note Rates;
(iv) to pay as principal on the Class IA-1 Notes and the Group I Variable Funding Notes, pro rata, an amount equal to the Principal Collection Distribution Amount for the Group I Notes and that Payment Date;
(v) to pay as principal on the Class IA-1 Notes and the Group I Variable Funding Notes, pro rata, an amount equal to the Liquidation Loss Distribution Amount for the Group I Notes and that Payment Date;
(vi) to reimburse the Enhancer for any unreimbursed draws made on the Policy for the Group I Notes, with interest thereon as provided in the Insurance Agreement;
(vii) to the holders of the Certificates in the priorities set forth in Section 3.26:
(A) on the Payment Dates in July and August 2002, 100% of the Remaining Excess Spread for the Group I Notes and the applicable Payment Date; and
(B) on the Payment Dates in September 2002 through and including December 2002, 50% of the Remaining Excess Spread for the Group I Notes and the applicable Payment Date;
(viii) to pay as principal on the Class IA-1 Notes and the Group I Variable Funding Notes, pro rata, an amount equal to the Overcollaterization Increase Amount for the Group I Notes and that Payment Date;
(ix) to pay the Enhancer any other amounts owed to it pursuant to the Insurance Agreement, with interest thereon;
(x) to pay the Indenture Trustee, the Owner Trustee, the Administrator and the Master Servicer any unpaid expenses and other reimbursable amounts owed to the Indenture Trustee, the Owner Trustee, the Administrator and the Master Servicer with respect to the Group I Notes; and
(xi) to pay the holders of the Class IA-1 Notes and the Variable Funding Notes, pro rata, any applicable unpaid Interest Carry-Forward Amounts, together with interest thereon;
(xii) any remaining amounts to the holders of the Certificates; provided, that in the event that on a Payment Date an Enhancer Default shall have occurred and be continuing, then the priorities of distributions described above will be adjusted such that payments of any amounts to be paid to the Enhancer will not be paid until the full amount of interest and principal in accordance with clauses (ii) through (iv) above that are due and required to be paid by the Enhancer on the Notes on such Payment Date have been paid. Notwithstanding the foregoing, on the Legal Final Payment Date of the Class IA-1 Notes, the amounts to be paid pursuant to clause (iii) above shall be equal to the sum of (a) one month's interest at the Offered Note Rate on Balance of the Security Balances Class IA-1 Notes and the Variable Funding Balance of the Variable Funding Notes immediately prior to such Payment Date and Date.
(b) any previously accrued On each Payment Date (other than a Payment Date after an Event of Default and unpaid interest for prior Payment Dates (specify priority an acceleration of Classes of the Notes), from amounts on deposit in the Trustee Collection Account resulting from Interest Collections, Principal Collections, prepayment penalties with respect to the Mortgage Loans in Loan Group II and investment earnings on amounts on deposit in the Trustee Collection Account with respect to Mortgage Loans in Loan Group II (after the Indenture Trustee has removed any investment earnings to be retained by it pursuant to Section 6.07), together with any Interest Rate Cap Agreement Payments on deposit in the Trustee Collection Account, minus any permitted expenses reimbursable to the Indenture Trustee pursuant to Section 6.07, the Indenture Trustee shall apply the following amounts in the following order of priority, in accordance with the Servicing Certificate:
(i) To pay any prepayment penalties on the Group II Mortgage Loans to holders of the Certificates;
(ii) to pay the Indenture Trustee the Trustee Fee with respect to the Group II Notes;
(if such iii) for any Payment Date is after up to and including the Funding Period,December 2004 Payment Date, an amount equal to $25,883.33 to the Interest Rate Cap Counterparty;
(iv) to pay the Noteholders accrued and unpaid interest due on the Note Balances of the Group II Notes and the notional balance of the Class IIA-IO Notes at their respective Note Rates as follows:
(A) first, to the Senior Group II Notes and the Class IIA-IO Notes, on a pro rata basis in accordance with the amount of accrued interest due thereon;
(B) second, to the Class IIM-1 Notes;
(C) third, to the Class IIM-2 Notes; and
(D) fourth, to the Class IIB-1 Notes;
(v) to pay as principal on the Notes(and Variable Funding Group II Notes (other than the Class IIA-IO Notes,) the applicable Security Percentage of ), an amount equal to the Principal Collection Distribution Amount for the Group II Notes and that Payment Date, as follows:
(and if such Payment Date is the first Payment Date following the end of the Funding Period (if ending due to an Amortization EventA) or the Payment Date on which the Funding Period endsfirst, to the Noteholders as principal on Class IIA-1 Notes and the Notes (and Group II Variable Funding Notes) the applicable Security Percentage of the amount deposited from the Funding Account in respect of Security Principal Collections);
(iii) to the Noteholders, as principal on the Notes (and Variable Funding Notes), pro rata, based on Note Balance, until the Security Balances from aggregate Note Balance of the amount remaining on deposit in the Payment Account, up Senior Group II Notes has been reduced to the applicable Security Percentage of Liquidation Loss Amounts for the related Col- lection PeriodSenior Group II Optimal Principal Balance;
(ivB) second, to the Class IIM-1 Notes, until the Note Balance of the Class IIM-1 Notes has been reduced to the Class IIM-1 Optimal Principal Balance;
(C) third, to the Class IIM-2 Notes, until the Note Balance of the Class IIM-2 Notes has been reduced to the Class IIM-2 Optimal Principal Balance; and
(D) fourth, to the Class IIB-1 Notes, until the Note Balance of the Class IIB-1 Notes has been reduced to the Class IIB-1 Optimal Principal Balance;
(vi) to the Noteholders, pay as principal on the Class IIA-1 Notes (and the Group II Variable Funding Notes), pro rata, based on Note Balance, until their aggregate Note Balance has been reduced to the Security Senior Group II Optimal Principal Balance, an amount equal to the Liquidation Loss Distribution Amount for the Group II Notes and that Payment Date;
(vii) to pay as principal on the Class IIM-1 Notes, until the Note Balance thereof has been reduced to the Class IIM-1 Optimal Principal Balance, an amount equal to the Liquidation Loss Distribution Amount for the Group II Notes and that Payment Date, to the extent not distributed to the holders of the Senior Group II Notes under clause (v) above;
(viii) to pay as principal on the Class IIM-2 Notes, until the Note Balance thereof has been reduced to the Class IIM-2 Optimal Principal Balance, an amount equal to the Liquidation Loss Distribution Amount for the Group II Notes and that Payment Date, to the extent not distributed to the holders of the Senior Group II Notes or the Class IIM-1 Notes under clauses (v) and (vi) above, respectively;
(ix) to pay as principal on the Class IIB-1 Notes, until the Note Balance thereof has been reduced to the Class IIB-1 Optimal Principal Balance, an amount equal to the Liquidation Loss Distribution Amount for the Group II Notes and that Payment Date, to the extent not distributed to the holders of the Senior Group II Notes, the Class IIM-1 Notes or the Class IIM-2 Notes under clauses (v), (vi) and (vii) above, respectively;
(x) to pay as principal on the Class IIA-1 Notes and the Group II Variable Funding Notes, pro rata, based on Note Balance, until their aggregate Note Balance has been reduced to the Senior Group II Optimal Principal Balance, an amount equal to the Overcollaterization Increase Amount for the Group II Notes and that Payment Date;
(xi) to pay as principal on the Class IIM-1 Notes, until the Note Balance thereof has been reduced to the Class IIM-1 Optimal Principal Balance, an amount equal to the Overcollaterization Increase Amount for the Group II Notes and that Payment Date, to the extent not distributed to the Senior Group II Notes under clause (x) above;
(xii) to pay as principal on the Class IIM-2 Notes, until the Note Balance thereof has been reduced to the Class IIM-2 Optimal Principal Balance, an amount equal to the Overcollaterization Increase Amount for the Group II Notes and that Payment Date, to the extent not distributed to the Senior Group II Notes or the Class IIM-1 Notes under clauses (x) and (xi) above, respectively;
(xiii) to pay as principal on the Class IIB-1 Notes, until the Note Balance thereof has been reduced to the Class IIB-1 Optimal Principal Balance, an amount equal to the Overcollaterization Increase Amount for the Group II Notes and that Payment Date, to the extent not distributed to the Senior Group II Notes, the Class IIM-1 Notes or the Class IIM-2 Notes under clauses (x), (xi) and (xii) above, respectively;
(xiv) to pay the Indenture Trustee, the Owner Trustee, the Administrator and the Master Servicer any unpaid expenses and other reimbursable amounts owed to the Indenture Trustee, the Owner Trustee, the Administrator and the Master Servicer with respect to the Group II Notes; and
(xv) to pay to the Class IIA-1 Notes and the Group II Variable Funding Notes, pro rata, any unpaid Interest Carry-Forward Amounts together with interest thereon;
(xvi) to pay to the Class IIM-1 Notes any unpaid Interest Carry-Forward Amounts together with interest thereon;
(xvii) to pay to the Class IIM-2 Notes any unpaid Interest Carry-Forward Amounts together with interest thereon;
(xviii) to pay to the Class IIB-1 Notes any unpaid Interest Carry-Forward Amounts together with interest thereon; and
(xix) any remaining amounts to the holders of the Certificates. Notwithstanding the foregoing, on the Legal Final Payment Date for a Class of Group II Notes, the amounts to be paid pursuant to clause (iv) above shall be equal to the aggregate of the Offered Note Balances from immediately prior to such Payment Date for all Group II Notes with a Legal Final Payment Date on such Payment Date. In the event that any withholding tax is imposed on distributions (or allocations of income) to a Holder of a Note or Certificate, such tax shall reduce the amount remaining otherwise distributable to such Holder in accordance with this Section 3.05. The Indenture Trustee is hereby authorized and directed to retain or cause to be retained from amounts otherwise distributable to the Holders of the Notes or Certificates sufficient funds for the payment of any tax that is legally owed by the Issuer; provided, that such authorization shall not prevent the Indenture Trustee from contesting any such tax in appropriate Proceedings and withholding payment thereof, if permitted by law, pending the outcome of such Proceedings. The amount of any withholding tax imposed with respect to a Holder of a Note or Certificate shall be treated as cash distributed to such Holder at the time it is withheld by the Indenture Trustee and remitted to the appropriate taxing authority. If there is a possibility that withholding tax is payable with respect to a distribution, the Indenture Trustee may in its sole discretion withhold such amounts in accordance with this paragraph. Amounts paid to Noteholders shall be paid in respect of the Notes, as the case may be, in accordance with the applicable percentage as set forth in paragraph (c) below. Any installment of interest or principal payable on deposit any Note that is punctually paid or duly provided for by the Issuer on the applicable Payment Date shall be paid to the Holder of record thereof on the immediately preceding Record Date by check or money order mailed to the address of such Noteholder reflected in the Payment AccountNote Register (or upon the request of a Holder owning Offered Notes with a principal amount or notional balance of at least $1,000,000, up by wire transfer to an account specified in writing by such Holder reasonably satisfactory to the Indenture Trustee), in the amount required to be distributed to such Holder on such Payment Date pursuant to such Holder’s Notes; provided, that the Indenture Trustee shall not pay to any such Holder any amounts required to be withheld from a payment to such Holder by the Code.
(c) Principal of each Note shall be due and payable in full on the Legal Final Payment Date for the related Class of Notes as provided in the applicable Security form of Note set forth in Exhibits ▇-▇, ▇-▇, and A-3. All principal payments on the Offered Notes and the Variable Funding Notes shall be made pro rata to the Class of Noteholders entitled thereto in accordance with the related Percentage Interests represented thereby. Upon written notice to the Indenture Trustee by the Issuer, the Indenture Trustee shall notify the Person in the name of Carryover Loss Amounts;which a Note is registered at the close of business on the Record Date preceding the related Legal Final Payment Date. Such notice shall be mailed no later than five Business Days prior to the related Legal Final Payment Date and shall specify that payment of the principal amount and any interest due with respect to such Note at the related Legal Final Payment Date will be payable only upon presentation and surrender of such Note, and shall specify the place where such Note may be presented and surrendered for such final payment.
Appears in 1 contract
Sources: Indenture (Bear Stearns Asset Backed Securities Inc)
Payment of Principal and Interest; Defaulted Interest. (a) On each Payment Date (other than a Payment Date after an Event of Default and an acceleration of the Notes), from amounts on deposit in the Payment Trustee Collection Account resulting from Interest Collections and Principal Collections with respect to the Mortgage Loans (after making (x) the Indenture Trustee has removed any deposit investment earnings to the Funding Account be retained by it pursuant to Section 8.02(b) and (y) any deposits 6.07 or paid to the Payment Account Depositor pursuant to Section 8.02(c)(ii) 5.03 of the Sale and Section 8.02(c)(i)(2)Servicing Agreement), MINUS the Indenture Trustee, on behalf of the Issuer shall pay Trustee Fee payable to the Noteholders and the Indenture Trustee, in its capacity as agent Trustee for the Issuer shall pay to other Persons, the amounts to which they are entitled as set forth below:
(i) to the Noteholders the sum of (a) one month's interest at the Note Rate on the Security Balances of Notes immediately prior to such Payment Date and (b) any previously permitted expenses reimbursable to the Indenture Trustee pursuant to Section 6.07, the Indenture Trustee shall apply the following amounts in the following order of priority, in accordance with the Report to Noteholders: FIRST, to pay the accrued and unpaid interest for prior Payment Dates (specify priority of Classes of Notes);
(ii) (if such Payment Date is after the Funding Period,) to the Noteholders as principal due on the Notes(and Note Balances (or Variable Funding Notes,) Balance in the applicable Security Percentage case of the Principal Collection Distribution Amount (and if such Payment Date is the first Payment Date following the end of the Funding Period (if ending due to an Amortization Event) or the Payment Date on which the Funding Period ends, to the Noteholders as principal on the Notes (and Variable Funding Notes) the applicable Security Percentage of the Notes and the notional balance of the Class A-IO Notes at their respective Note Rates, in the following order:
(A) to the Senior Notes on a PRO RATA basis in accordance with the amount deposited from the Funding Account in respect of Security Principal Collections)accrued interest due thereon;
(iiiB) to the Noteholders, as principal on the Notes (and Variable Funding Notes), pro rata, based on the Security Balances from the amount remaining on deposit in the Payment Account, up to the applicable Security Percentage of Liquidation Loss Amounts for the related Col- lection PeriodClass M-1 notes;
(ivC) to the Noteholders, as principal on the Notes Class M-2 notes;
(and Variable Funding Notes), pro rata, based on the Security Balances from the amount remaining on deposit in the Payment Account, up D) to the applicable Security Percentage of Carryover Loss AmountsClass B-1 notes; and
(E) to the Class B-2 notes;
Appears in 1 contract
Sources: Indenture (Bear Stearns Asset Backed Securities Inc)