Priorities of Distribution Clause Samples
The 'Priorities of Distribution' clause defines the order in which proceeds or assets are distributed among parties, typically in the event of liquidation, dissolution, or a similar financial event. This clause specifies which stakeholders—such as creditors, preferred shareholders, and common shareholders—receive payment first and how remaining funds are allocated among subsequent parties. By clearly establishing the hierarchy of payments, the clause ensures transparency and predictability, reducing disputes and clarifying expectations regarding financial recoveries.
Priorities of Distribution. (a) On each Distribution Date, the Securities Administrator shall allocate from amounts then on deposit in the Distribution Account in the following order of priority and to the extent of the Available Funds remaining and, on such Distribution Date, shall make distributions on the Certificates in accordance with such allocation:
(i) to the Supplemental Interest Trust and to the holders of each Class of LIBOR Certificates in the following order of priority:
(A) to the Supplemental Interest Trust, the sum of (x) all Net Swap Payments and (y) any Swap Termination Payment owed to the Swap Provider other than a Defaulted Swap Termination Payment;
(B) concurrently, (1) from the Interest Remittance Amount related to the Group I Mortgage Loans, to the Class A-1 Certificates, the related Accrued Certificate Interest Distribution Amounts and Unpaid Interest Amounts for the Class A-1 Certificates; (2) from the Interest Remittance Amount related to the Group II Mortgage Loans, pro rata (based on the Accrued Certificate Interest Distribution Amounts and Unpaid Interest Amounts distributable to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates) to the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates, the related Accrued Certificate Interest Distribution Amounts and Unpaid Interest Amounts for the Class A-2A, Class A-2B, Class A-2C and Class A-2D Certificates; (3) provided, that if the Interest Remittance Amount for either Loan Group is insufficient to make the related payments set forth clause (1) or (2) above, any Interest Remittance Amount relating to the other Loan Group remaining after payment of the related Accrued Certificate Interest Distribution Amounts and Unpaid Interest Amounts will be available to cover that shortfall;
(C) from any remaining Interest Remittance Amounts, to the Class M-1 Certificates, the Accrued Certificate Interest Distribution Amount for such Class;
(D) from any remaining Interest Remittance Amounts, to the Class M-2 Certificates, the Accrued Certificate Interest Distribution Amount for such Class;
(E) from any remaining Interest Remittance Amounts, to the Class M-3 Certificates, the Accrued Certificate Interest Distribution Amount for such Class;
(F) from any remaining Interest Remittance Amounts, to the Class M-4 Certificates, the Accrued Certificate Interest Distribution Amount for such Class;
(G) from any remaining Interest Remittance Amounts, to the Class M-5 Certificates, the Accrued Certificate Interes...
Priorities of Distribution. (a) On each Distribution Date, the Trustee shall withdraw the Available Funds for each Certificate Group from the applicable subaccount of the Distribution Account and apply such funds to distributions on the Certificates of the related Certificate Group in the following order and priority and, in each case, to the extent of Available Funds remaining:
(i) to the Classes of Senior Certificates of the related Certificate Group, the Accrued Certificate Interest on each such Class for such Distribution Date;
(ii) to the Classes of Senior Certificates of the related Certificate Group, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Available Funds from the related Mortgage Pool;
(iii) to the Classes of Senior Certificates of the related Certificate Group, to the extent of remaining Available Funds from the related Mortgage Pool, the related Senior Optimal Principal Amount for such Distribution Date and, in the case of the Group II Senior Certificates, in the order of priority set forth below in Section 4.2(b), until the respective Class Certificate Balances thereof have been reduced to zero;
(iv) to the Class B-1 Certificates, to the extent of remaining Available Funds for the Mortgage Pools, but subject to the prior payment of amounts described under Section 4.2(g), in the following order: (1) the Accrued Certificate Interest thereon for such Distribution Date, (2) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (3) such Class' Allocable Share for such Distribution Date;
(v) to the Class B-2 Certificates, to the extent of remaining Available Funds for the Mortgage Pools, but subject to the prior payment of amounts described under Section 4.2(g), in the following order: (1) the Accrued Certificate Interest thereon for such Distribution Date, (2) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (3) such Class' Allocable Share for such Distribution Date;
(vi) to the Class B-3 Certificates, to the extent of remaining Available Funds for the Mortgage Pools, but subject to the prior payment of amounts described under Section 4.2(g), in the following order: (1) the Accrued Certificate Interest thereon for such Distribution Date, (2) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (3) such Class' Allocable Share for such Distribution...
Priorities of Distribution. Section 4.03 Monthly Statements to Certificateholders..................... Section 4.04 Certain Matters Relating to the Determination of LIBOR....
Priorities of Distribution. (A) On each Distribution Date, the Trust Administrator shall determine the amounts to be distributed to each Class of Certificates as follows:
(a) with respect to the Group 1 Certificates, before the related Credit Support Depletion Date and from the Available Distribution Amount relating to Loan Group 1, subject to Section 4.01(B) below:
(i) first, to the Group 1 Certificates entitled to interest, an amount allocable to interest equal to the related Interest Distribution Amount; any shortfall being allocated pro rata among such Classes in proportion to the amount of the Interest Distribution Amount that would have been distributed in the absence of such shortfall; and
(ii) second, to the Group 1 Certificates entitled to principal, the Senior Principal Distribution Amount for Loan Group 1, in the following order of priority;
(A) first, to the Class AR and Class AR-L Certificates, pro rata based on Class Principal Balances, until their respective Class Principal Balances are reduced to zero;
(B) second, to the Class 1-A-1, Class 1-A-2, Class 1-A-3 and Class 1-A-6 Certificates, pro rata based on Class Principal Balances, until their respective Class Principal Balances are reduced to zero;
(b) with respect to the Group 2 and Class A-X Certificates, before the related Credit Support Depletion Date and from the Available Distribution Amount relating to Loan Group 2, subject to Section 4.01(B) below:
(i) first, concurrently, to the Group 2 and Class A-X Certificates, an amount allocable to interest equal to the related Interest Distribution Amount; any shortfall being allocated pro rata among such Classes in proportion to the amount of the Interest Distribution Amount that would have been distributed in the absence of such shortfall; provided however, that for the purposes of distributions to the Class A-X Certificates pursuant to this Section 4.01(A)(b)(i), only a portion of the Class A-X Notional Amount derived from the Group 2 Mortgage Loans will be used to calculate these distributions; provided further, that any Class 2-A-2/2-A-5 Accrual Amount for any Distribution Date on or before the Class 2-A-2/2-A-5 Accretion Termination Date will instead be distributed in accordance with the Class 2-A-2/2-A-5 Accretion Direction Rule; and
(ii) second, to the Group 2 Certificates, the Senior Principal Distribution Amount for Loan Group 2, in the following order of priority;
(A) first, to the Class 2-A-4, the Group 2 Priority Amount, until its Class Principal Balance is...
Priorities of Distribution. (a) On each Distribution Date, the Trustee shall withdraw the Available Funds from the Distribution Account and apply such funds to distributions on the Certificates in the following order and priority and, in each case, to the extent of Available Funds remaining:
(i) concurrently, to each interest-bearing Class of Senior Certificates, an amount allocable to interest equal to the related Class Optimal Interest Distribution Amount, any shortfall being allocated among such Classes in proportion to the amount of the Class Optimal Interest Distribution Amount that would have been distributed in the absence of such shortfall; provided that prior to the Accrual Termination Date, the Accrual Amount shall be distributed as provided in Section 4.02(a)(ii);
(ii) [reserved];
(iii) concurrently, to the Classes of Senior Certificates as follows:
(A) to the Class PO Certificates an amount allocable to the PO Formula Principal Amount up to the Class Certificate Balance thereof; and
(B) on each Distribution Date prior to the Senior Credit Support Depletion Date, the Non-PO Formula Principal Amount up to the amount of the Senior Principal Distribution Amount for such Distribution Date will be distributed, sequentially, as follows:
1. to the Class A-R Certificates, until its Class Certificate Balance is reduced to zero; and
2. concurrently, to the Class A-1 and Class A-2 Certificates, pro rata, until their respective Class Certificate Balances are reduced to zero;
(iv) to the Class PO Certificates, any Class PO Deferred Amount, up to an amount not to exceed the amount calculated pursuant to the definition of Subordinated Principal Distribution Amount actually received or advanced for such Distribution Date (with such amount to be allocated first from amounts calculated pursuant to (i) and (ii) and then (iii) of the definition of Subordinated Principal Distribution Amount;
(v) On each Distribution Date, Available Funds remaining after making the distributions described in Section 4.02(a)(i)-(iv) will be distributed to the Subordinated Certificates, subject to paragraph 4.02(e) below, in the following order of priority:
(A) to the Class B-1 Certificates, an amount allocable to interest equal to the Class Optimal Interest Distribution Amount for such Class for such Distribution Date;
(B) to the Class B-1 Certificates, an amount allocable to principal equal to its Pro Rata Share for such Distribution Date until the Class Certificate Balance thereof is reduced to zero;
(C) to th...
Priorities of Distribution. (1) With respect to Available Funds for Loan Group 1, on each Distribution Date, the Securities Administrator shall withdraw the Available Funds from the funds available therefor in the Distribution Account and apply such funds to distributions on the specified Classes of Group 1 Senior Certificates in the following order and priority and, in each case, to the extent of Available Funds remaining:
(i) [Reserved];
(ii) concurrently, to each interest-bearing Class of Group 1 Senior Certificates, an amount allocable to interest equal to the related Class Optimal Interest Distribution Amount, any shortfall being allocated among such Classes in proportion to the amount of the Class Optimal Interest Distribution Amount that would have been distributed in the absence of such shortfall; provided that prior to an Accrual Termination Date, the related Accrual Amount shall be distributed as provided in Section 5.02(a)(1)(iii);
(iii) the Accrual Amount shall be distributed in accordance with the Accretion Direction Rule;
(iv) to each Class of Group 1 Senior Certificates, concurrently as follows:
Priorities of Distribution. Section 4.03
Priorities of Distribution. (a) On each Distribution Date, the Trustee shall withdraw the Available Funds from the Distribution Account and apply such funds to distributions on the Certificates in the following order and priority and, in each case, to the extent of Available Funds remaining:
(i) [Reserved];
(ii) concurrently, to each interest-bearing Class of Senior Certificates, an amount allocable to interest equal to the related Class Optimal Interest Distribution Amount, any shortfall being allocated among such Classes in proportion to the amount of the Class Optimal Interest Distribution Amount that would have been distributed in the absence of such shortfall, provided that prior to an Accrual Termination Date, the related Accrual Amount shall be distributed as provided in Section 4.02(a)(iii);
(iii) [Reserved];
(iv) to each Class of Senior Certificates, concurrently as follows:
Priorities of Distribution. 58 Section 4.03 [Reserved]............................................................................61 Section 4.04 [Reserved]............................................................................61 Section 4.05 Allocation of Realized Losses.........................................................61 Section 4.06 Monthly Statements to Certificateholders..............................................62 Section 4.07 [Reserved]............................................................................64 Section 4.08 Determination of Pass-Through Rates for LIBOR Certificates............................64 ARTICLE FIVE THE CERTIFICATES......................................................................66 Section 5.01 The Certificates......................................................................66 Section 5.02 Certificate Register; Registration of Transfer and Exchange of Certificates...........66 Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.....................................70 Section 5.04 Persons Deemed Owners.................................................................70 Section 5.05 Access to List of Certificateholders' Names and Addresses.............................71 Section 5.06 Maintenance of Office or Agency.......................................................71 ARTICLE SIX THE DEPOSITOR AND THE MASTER SERVICER.................................................72
Priorities of Distribution. Section 4.03 Monthly Statements to Certificateholders......................... Section 4.04 Certain Matters Relating to the Determination of LIBOR........... Section 4.05 Allocation of Applied Realized Loss Amounts......................