Payments of Interest and Principal Collections Sample Clauses
The 'Payments of Interest and Principal Collections' clause defines how collected funds from a loan or financial asset are distributed between interest and principal payments. Typically, this clause outlines the order and timing in which borrowers' payments are applied, specifying whether interest is paid before principal or if payments are split proportionally. For example, in a securitization, it may detail how incoming cash flows are allocated to investors or used to pay down outstanding balances. Its core function is to ensure transparency and predictability in the allocation of payments, thereby reducing disputes and clarifying the rights of parties to receive funds.
Payments of Interest and Principal Collections. Pursuant to Section 3.1 of the Indenture, on each Payment Date, the Indenture Trustee, with respect to the Notes, and the Paying Agent, with respect to the Ownership Interest, shall distribute out of the Collection Account, to the extent of the Available Payment Amount, the following amounts and in the following order of priority to the following Persons (based on the information set forth in the Servicing Certificate):
(i) to the Class A Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class A Notes;
(ii) to the Class M Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class M Notes;
(iii) to the Class A Notes until the Note Principal Amount of such Class A Notes has been reduced to zero, 84.94624679% of the Principal Payment Amount;
(iv) to the Class A Notes, the Principal Carry Forward Amount with respect to the Class A Notes;
(v) to the Class A Notes until the Note Principal Amount of such Class A Notes has been reduced to zero, 84.94624679% of the Additional Principal Reduction Amount;
(vi) to the Class M Notes until the Note Principal Amount of such Class M Notes has been reduced to zero, 15.05375321% of the Principal Payment Amount;
(vii) to the Class M Notes, the Principal Carry Forward Amount with respect to the Class M Notes;
(viii) to the Class M Notes until the Note Principal Amount of such Class M Notes has been reduced to zero, 15.05375321% of the Additional Principal Reduction Amount;
(ix) concurrently, to the Class A Notes and to the Class M Notes until the Note Principal Amount of each such Class A and Class M Notes has been reduced to zero, 84.94624679% of the Extra Principal Payment Amount to the Class A Notes and 15.05375321% of the Extra Principal Payment Amount to the Class M Notes;
(x) the Class A and Class M Notes, pro rata, according to the outstanding Class A Supplemental Interest Amount and Class M Supplemental Interest Amount, the outstanding Class A Supplemental Interest Amount and the outstanding Class M Supplemental Interest Amount;
(xi) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay any judgment or settlement affecting the Trust; and
(xii) to the Transferor in respect of the Ownership Interest, any remaining Available Payment Amount; PROVIDED, HOWEVER, that on any Payment Date after the earlier of (i) the date on which the first auction conducted by the Indenture Trustee pursuant to Section 8.01(c) does not produce any bid at...
Payments of Interest and Principal Collections. Pursuant to Section 3.1 of the Indenture, on each Payment Date, the Indenture Trustee, with respect to the Notes, and the Paying Agent, with respect to the Ownership Interest, shall distribute out of the Collection Account, to the extent of the Available Payment Amount (except that amounts paid under the Note Guaranty Insurance Policy shall only be available for payment to Noteholders), the following amounts and in the following order of priority to the following Persons (based on the information set forth in the Servicing Certificate):
(i) to the Insurer, the Premium Amount (to the extent not previously paid by the Master Servicer);
(ii) to the holders of the Notes, an amount equal to the Interest Payment Amount for the Notes for such Payment Date;
(iii) to the holders of the Notes, the Principal Payment Amount for such Payment Date until the Note Principal Amount has been reduced to zero;
(iv) to the holders of the Notes, to the extent of the Available Payment Amount remaining, the Distributable Excess Cashflow for such Payment Date until the Note Principal Amount has been reduced to zero;
(v) to the Insurer, any Reimbursement Amounts due and owing to the Insurer under the Insurance and Indemnity Agreement;
(vi) to the Notes, the Supplemental Interest Amount for such Payment Date;
(vii) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay any judgment or settlement affecting the Trust; and
(viii) to the Transferor in respect of the Ownership Interest, any remaining Available Payment Amount provided, however, that on any Payment Date after the earlier of (i) the date on which the first auction conducted by the Indenture Trustee pursuant to Section 8.01(c) does not produce any bid at least equal to the Termination Price or (ii) the August 2012 Payment Date, any remaining amount available for payment pursuant to this Section 5.01(a)(viii) shall instead be paid to the Notes in reduction of the Note Principal Amount; provided, that in the event that on a Payment Date an Insurer Default shall have occurred and be continuing, then the priorities of payments described above will be adjusted such that payments of any amounts to be paid to the Insurer 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 Issuer on the Notes on such Payment Date have been paid; provided, further that so long as an Insurer Default has occurred and is continui...