Residual Interest and Transfer of Certificates Clause Samples

The "Residual Interest and Transfer of Certificates" clause defines how any remaining interests in a financial instrument or trust, known as residual interests, are handled and the rules governing the transfer of certificates representing ownership or participation. Typically, this clause outlines the process by which holders of residual interests may transfer their certificates to other parties, including any required approvals, restrictions, or documentation. Its core function is to ensure that the transfer of ownership rights is conducted in an orderly and legally compliant manner, thereby preventing unauthorized transfers and clarifying the rights of all parties involved.