Trustee Not Required to Amortize Clause Samples
The 'Trustee Not Required to Amortize' clause establishes that the trustee is not obligated to allocate receipts or disbursements between income and principal over time, a process known as amortization. In practice, this means the trustee can treat certain payments, such as loan repayments or investment returns, as either income or principal without spreading them out over multiple periods. This clause simplifies the trustee's administrative duties and reduces the complexity of trust accounting, ensuring clarity and efficiency in managing trust assets.
Trustee Not Required to Amortize. Nothing in this Indenture, or otherwise, shall be construed to require the Trustee to make any adjustments between the Income and Capital Accounts of any Trust by reason of any premium or discount in respect of any of the Bonds."
34. Section 5.01 of Standard Terms and Conditions of Trust shall be replaced in its entirety with the following:
Trustee Not Required to Amortize. Nothing in this Indenture, or otherwise, shall be construed to require the Trustee to make any adjustments between the Income and Capital Accounts of any Trust by reason of any premium or discount in respect of any of the Fixed Income Securities.
Trustee Not Required to Amortize. Nothing in this Indenture or otherwise shall be construed to require the Trustee to make any adjustments between the Interest and Principal Accounts of the Trust by reason of any premium or discount in respect of any of the Securities.