SPREAD ACCOUNTS Clause Samples

The "Spread Accounts" clause establishes the creation and management of accounts used to hold funds that serve as a financial buffer or reserve in structured finance transactions. These accounts typically accumulate excess cash flows or spreads generated by the underlying assets, which can then be used to cover shortfalls, pay expenses, or provide additional security to investors. By specifying how these accounts are funded, maintained, and accessed, the clause ensures that there is a mechanism in place to mitigate payment risks and enhance the credit quality of the transaction.
SPREAD ACCOUNTS. Section 3.01. Establishment of Spread Accounts; Initial Deposits into Spread Accounts . . . . . . . . . . . . . . . . . . . . . . . . 19 Section 3.02. Investments . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 3.03. Distributions: Priority of Payments . . . . . . . . . . . . . . 21 Section 3.04. General Provisions Regarding Spread Accounts . . . . . . .
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SPREAD ACCOUNTS. Section 3.01. Establishment of Spread Accounts; Initial Deposits into Spread Accounts..........................26 Section 3.02. Investments...............................................27 Section 3.03. Distributions; Priority of Payments.......................28 Section 3.04. General Provisions Regarding Spread Accounts..............31 Section 3.05. Reports by the Collateral Agent...........................32
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SPREAD ACCOUNTS. Section 3.1 Establishment of Series 1999-1 Spread Account; Initial Spread Account Deposit into Spread Account. (a) On or prior to the Series 1999-1 Closing Date, the Collateral Agent established with respect to Series 1999-1, at its office or at another depository institution or trust company an Eligible Account, designated, "Spread Account - National Auto Finance 1999-1 Trust - Harr▇▇ ▇▇▇st and Savings Bank, as Collateral Agent for Financial Security Assurance Inc. and another Secured Party" (the "Series 1999-1 Spread Account"). On the Closing Date with respect to Series 1999-1, the Collateral Agent deposited the Initial Spread Account Deposit received from the Transferor into the Series 1999-1 Spread Account.
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SPREAD ACCOUNTS. (a) No later than the Closing Date, the Trustee will establish and maintain (i) for the benefit of the Holders of the Class X Certificates and the Insurer an Eligible Account titled "Class AF Spread Account, JPMorgan Chase Bank, as trustee for the registered holders of Equity One ABS, Inc. Mortgage Pass-Through Certificates, Series 2001-3, Class X," and (ii) for the benefit of the Holders of the Class X Certificates and the Insurer an Eligible Account titled "Class AV-1 Spread Account, JPMorgan Chase Bank, as trustee for the registered holders of Equity One ABS, Inc. Mortgage Pass-Through Certificates, Series 2001-3, Class X." Each Spread Account shall be treated as an "outside reserve fund" under applicable Treasury regulations and will not be part of any REMIC. The Trustee shall, promptly upon receipt, deposit into the applicable Spread Account and retain therein amounts transferred by the Trustee pursuant to Sections 4.02(a)(viii) and (b)(viii). The Spread Account Earnings shall be for the benefit of the Depositor and shall be payable to the Depositor on each Distribution Date. (b) Amounts on deposit in the Spread Accounts shall be withdrawn on each Distribution Date by the Trustee in the following order of priority: (i) the amount of any excess of (1) the Remittance Amount for the Class AF Certificates and Class A-IO-I Component for such Distribution Date over (2) the Net Available Funds for the Class AF Certificates and Class A-IO-I Component for such Distribution Date, shall be withdrawn from the Class AF Spread Account and, to the extent that the funds on deposit therein are insufficient, from the Class AV-1 Spread Account (any such amount, the "Class AF Spread Account Draw"), and deposited into the Distribution Account; and (ii) the amount of any excess of (1) the Remittance Amount for the Class AV-1 Certificates and Class A-IO-II Component for such Distribution Date over (2) the Net Available Funds for the Class AV-1 Certificates and Class A-IO-II Component for such Distribution Date, shall be withdrawn from the Class AV-1 Spread Account and, to the extent that the funds on deposit therein are insufficient, from the Class AF Spread Account (any such amount, the "Class AV-1 Spread Account Draw"), and deposited into the Distribution Account; and (iii) thereafter, in accordance with Section 4.02(d). The amounts withdrawn from the Spread Accounts pursuant to this paragraph (b) shall be net of any Spread Account Earnings not previously distributed to t...
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SPREAD ACCOUNTS. Section Establishment of Spread Accounts; Initial
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SPREAD ACCOUNTS 
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Related to SPREAD ACCOUNTS

  • Spread Account (a) On the Closing Date, the Seller shall deposit the applicable Spread Account Deposit into the Spread Account. (b) If the amount on deposit in the Spread Account on any Payment Date (after giving effect to all deposits or withdrawals therefrom on such Payment Date) is greater than the Specified Spread Account Balance for such Payment Date, the Servicer shall instruct the Indenture Trustee to distribute the amount of the excess to the Seller (and its transferees and assignees in accordance with their respective interests); provided, that if, after giving effect to all payments made on the Notes on such Payment Date, the Pool Balance as of the first day of the Collection Period in which such Payment Date occurs is less than the Note Balance, such excess shall not be distributed to the Seller (or such transferees or assignees) and shall be retained in the Spread Account for application in accordance with this Agreement. Amounts properly distributed pursuant to this Section 5.7(b) shall be deemed released from the Trust and the security interest therein granted to the Indenture Trustee, and the Seller (and such transferees and assignees) shall in no event thereafter be required to refund any such distributed amounts. (c) Following: (i) the payment in full of the aggregate Outstanding Amount of the Notes and of all other amounts owing or to be distributed hereunder or under the Indenture to the Noteholders, the Trustee and the Indenture Trustee and (ii) the termination of the Trust, any amount remaining on deposit in the Spread Account shall be distributed to the Seller or any transferee or assignee pursuant to clause (e). The Seller (and such transferees and assignees) shall in no event be required to refund any amounts properly distributed pursuant to this Section 5.7(c). (d) In the event that the First Principal Payment Amount and the Noteholders’ Distributable Amount for a Payment Date exceeds the amount deposited into the Note Distribution Account pursuant to Sections 5.6(b)(iv), (v), (vi), (vii) and (viii) on such Payment Date, the Servicer shall instruct the Indenture Trustee on such Payment Date to withdraw from the Spread Account on such Payment Date an amount equal to such excess, to the extent of funds available therein, and deposit such amount into the Note Distribution Account. (e) The Seller may at any time, without consent of the Noteholders, sell, transfer, convey or assign in any manner its rights to and interests in distributions from the Spread Account, including interest and other investment earnings thereon; provided, that the Rating Agency Condition is satisfied.

  • Reserve Accounts All unexpended funds in project reserve accounts shall remain with the Project to be used for the benefit of the property and/or its residents. The minimum replacement reserve deposit for projects shall be $ per unit per year. The on- going funding of the replacement reserve in this amount is a requirement of this Agreement during the Compliance Period, and the Owner shall maintain these reserves in a segregated account. Funds in the replacement reserve shall only be used for capital improvements or repairs. An operating reserve shall be funded in an amount equal to three months of estimated operating expenses and debt service under stabilized occupancy. Additional funding will be required only if withdrawals result in a reduction of the operating reserve account balance to 50% or less of the originally funded amount. An equal, verified operating reserve requirement of any other debt or equity source may be used as a substitute, and the reserve may be released following achievement of a minimum annual debt service ratio of 1.15 for three consecutive years following stabilized occupancy only to pay deferred developer fee. Upon Committee approval, operating reserve amounts in excess of industry norms may be considered “reasonable costs,” for purposes of this subsection, only for homeless assistance projects under the Non- Profit Set-Aside, as described in Section 10315(b), Special Needs projects, HOPE VI projects, or project based Section 8 projects. The original Sources and Uses budget and the final cost certification shall demonstrate the initial and subsequent funding of the operating reserves.

  • Investment Accounts Schedule 2 sets forth under the headings “Securities Accounts” and “Commodity Accounts”, respectively, all of the Securities Accounts and Commodity Accounts in which such Grantor has an interest. Except as disclosed to the Administrative Agent, such Grantor is the sole entitlement holder of each such Securities Account and Commodity Account, and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Administrative Agent) having “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over, or any other interest in, any such Securities Account or Commodity Account or any securities or other property credited thereto, except for, subject to the relevant Control Agreement, the account bank party to such Control Agreement; (a) Schedule 2 sets forth under the heading “Deposit Accounts” all of the Deposit Accounts in which such Grantor has an interest and, except as otherwise disclosed to the Administrative Agent, such Grantor is the sole account holder of each such Deposit Account and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Administrative Agent) having either sole dominion and control (within the meaning of common law) or “control” (within the meaning of Section 9-104 of the UCC) over, or any other interest in, any such Deposit Account or any money or other property deposited therein, except for, subject to the relevant Control Agreement, the account bank party to such Control Agreement; and (b) Except as otherwise permitted under Section 5.6 and Section 5.7, such Grantor has taken all actions necessary or desirable to: (i) establish the Administrative Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any Certificated Securities (as defined in Section 9-102 of the UCC); (ii) establish the Administrative Agent’s “control” (within the meanings of Sections 8-106 and 9-106 of the UCC) over any portion of the Investment Accounts constituting Securities Accounts, Commodity Accounts, Securities Entitlements or Uncertificated Securities (each as defined in Section 9-102 of the UCC); (iii) establish the Administrative Agent’s “control” (within the meaning of Section 9-104 of the UCC) over all Deposit Accounts other than Exempt Accounts; and (iv) deliver all Instruments (as defined in Section 9-102 of the UCC) to the Administrative Agent to the extent required hereunder, provided, that the Administrative Agent shall not send a notice of sole control or similar notice unless an Event of Default has occurred and is continuing.

  • Custodial Accounts The Master Servicer shall cause to be established and maintained by each Servicer under the Master Servicer's supervision the Custodial Account for P&I, Buydown Fund Accounts (if any) and special Custodial Account for Reserves and shall deposit or cause to be deposited therein daily the amounts related to the Mortgage Loans required by the Selling and Servicing Contracts to be so deposited. Proceeds received with respect to individual Mortgage Loans from any title, hazard, or FHA insurance policy, VA guaranty, Primary Insurance Policy or other insurance policy (other than any Special Primary Insurance Policy) covering such Mortgage Loans shall be deposited first in the Custodial Account for Reserves if required for the restoration or repair of the related Mortgaged Property. Otherwise, Insurance Proceeds (other than proceeds from any Special Primary Insurance Policy) shall be deposited in the Custodial Account for P&I, and shall be applied to the balances of the related Mortgage Loans as payments of interest and principal. The Master Servicer is hereby authorized to make withdrawals from and to issue drafts against the Custodial Accounts for P&I and the Custodial Accounts for Reserves for the purposes required or permitted by this Agreement. Each Custodial Account for P&I and each Custodial Account for Reserves shall bear a designation clearly showing the respective interests of the applicable Servicer, as trustee, and of the Master Servicer, in substantially one of the following forms: (a) With respect to the Custodial Account for P&I: (i) [Servicer's Name], as agent, trustee and/or bailee of principal and interest custodial account for PNC Mortgage Securities Corp., its successors and assigns, for various owners of interests in PNC Mortgage Securities Corp. mortgage-backed pools or (ii) [Servicer's Name] in trust for PNC Mortgage Securities Corp.; (b) With respect to the Custodial Account for Reserves: (i) [Servicer's Name], as agent, trustee and/or bailee of taxes and insurance custodial account for PNC Mortgage Securities Corp., its successors and assigns for various mortgagors and/or various owners of interests in PNC Mortgage Securities Corp. mortgage-backed pools or (ii) [Servicer's Name] in trust for PNC Mortgage Securities Corp. and various Mortgagors. The Master Servicer hereby undertakes to assure remittance to the Certificate Account of all amounts relating to the Mortgage Loans that have been collected by any Servicer and are due to the Certificate Account pursuant to Section 4.01 of this Agreement.

  • Collateral Accounts (a) The Trustee is authorized to receive any funds for the benefit of the Holders distributed under, and in accordance with, the Collateral Documents, and to make further distributions of such funds to the Holders according to the provisions of this Indenture, the Collateral Documents and the Intercreditor Agreement. (b) Prior to the Issue Date, the Trustee shall have established the Collateral Accounts, which shall at all times hereafter until this Indenture shall have terminated, be maintained with, and under the sole control of, the Trustee. The Collateral Accounts shall be trust accounts and shall be established and maintained by the Trustee at one of its corporate trust offices (which may include the New York corporate trust office) and all Collateral shall be credited thereto. All cash and Cash Equivalents received by the Trustee from Asset Dispositions of Collateral, Recovery Events, Asset Swaps involving the transfer of Collateral, foreclosures of or sales of the Collateral, issuances of Additional Securities and other awards or proceeds pursuant to the Collateral Documents, including earnings, revenues, rents, issues, profits and income from the Collateral received pursuant to the Collateral Documents, shall be deposited in the First Priority Collateral Account, in the case of proceeds from First Priority Collateral, or in the Second Priority Collateral Account, in the case of proceeds from Second Priority Collateral, and thereafter shall be held, applied and/or disbursed by the Trustee in accordance with the terms of this Indenture (including, without limitation, Section 2.1(a), Section 3.5, Section 6.10 and Section 11.8(a). In connection with any and all deposits to be made into the Collateral Accounts under this Indenture, the Collateral Documents or the Intercreditor Agreement, the Trustee and/or the Collateral Agent, as applicable, shall receive an Officers’ Certificate identifying which Collateral Account shall receive such deposit and directing the Trustee and/or the Collateral Agent to make such deposit. (c) Pending the distribution of funds in the Collateral Account in accordance with the provisions hereof and provided that no Event of Default shall have occurred and be continuing, the Company may direct the Trustee to invest such funds in Cash Equivalents specified in such direction, such investments to mature by the times such funds are needed hereunder and such direction to certify that such funds constitute Cash Equivalents and that no Event of Default shall have occurred and be continuing. So long as no Event of Default shall have occurred and be continuing, the Company may direct the Trustee to sell, liquidate or cause the redemption of any such investments, such direction to certify that no Event of Default shall have occurred and be continuing. Any gain or income on any investment of funds in the Collateral Account shall be credited to the Collateral Account. The Trustee shall have no liability for any loss incurred in connection with any investment or any sale, liquidation or redemption thereof made in accordance with the provisions of this Section 11.8(c).