The Residual Interest Certificates Sample Clauses
The Residual Interest Certificates clause defines the rights and obligations associated with certificates that represent a residual or remaining interest in a financial trust or securitization structure. Typically, these certificates entitle holders to receive any excess cash flows or assets left after all other specified payments, such as principal and interest to senior certificate holders, have been made. For example, in a mortgage-backed security, the residual interest certificate holder may receive any leftover funds after all scheduled payments to other investors are satisfied. This clause is essential for clarifying the distribution of remaining assets and managing the allocation of risk and reward among different classes of investors.
The Residual Interest Certificates. The Residual Interest Certificates shall not be issued with a principal amount. The Residual Interest Certificates shall be executed on behalf of the Trust by manual or facsimile signature of a Trust Officer of the Owner Trustee. Residual Interest Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, shall be valid and binding obligations of the Trust, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Residual Interest Certificates or did not hold such offices at the date of authentication and delivery of such Residual Interest Certificates. A transferee of a Residual Interest Certificate shall become an Owner, and shall be entitled to the rights and subject to the obligations of an Owner hereunder and under the Sale and Servicing Agreement, upon such transferee's acceptance of a Residual Interest Certificate duly registered in such transferee's name pursuant to Section 3.4.
The Residual Interest Certificates. Each Residual Interest Certificate shall be issued and maintained in definitive, fully registered form as a single Certificate evidencing a Percentage Interest of not less than 100%. Each Residual Interest Certificate shall be executed on behalf of the Trust by manual or facsimile signature of an authorized officer of the Owner Trustee. Residual Interest Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, shall be validly issued and entitled to the benefit of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Residual Interest Certificates or did not hold such offices at the date of authentication and delivery of such Residual Interest Certificates. Upon issuance of the Residual Interest Certificates, the Owner Trustee shall authenticate the Residual Interest Certificates in accordance with the written instructions of the prospective transferee thereof. Neither the Certificate Registrar nor the Owner Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions. Upon the issuance of any such Residual Interest Certificate, the Owner Trustee shall recognize the Holders of the Residual Interest Certificates as Certificateholders. The Residual Interest Certificates shall be printed, lithographed or engraved or may be produced in any other manner as is reasonably acceptable to the Owner Trustee, as evidenced by its execution thereof. A transferee of a Residual Interest Certificate shall become a Certificateholder and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder upon such transferee’s acceptance of a Residual Interest Certificate duly registered in such transferee’s name pursuant to Section 3.04.