Underlying Security Default definition
Underlying Security Default. Unless otherwise specified in the Trust Agreement, (i) the acceleration of the outstanding Underlying Securities under the terms of the Underlying Securities and/or the applicable Underlying Security Issuance Agreement and failure to pay the accelerated amount on the acceleration date; (ii) the failure of the Underlying Security Issuer (or any applicable guarantor on its behalf) to pay an installment of principal of, or any amount of interest due on, the Underlying Securities after the due date thereof and after the expiration of any applicable grace period; (iii) the initiation by the Underlying Security Issuer or applicable guarantor of any proceedings seeking a judgment of insolvency or bankruptcy or seeking relief under bankruptcy or insolvency laws or similar laws affecting creditor's rights; (iv) if not otherwise addressed in (iii), the passage of thirty (30) calendar days since the day upon which any person or entity initiates any proceedings against the Underlying Security Issuer or applicable guarantor seeking a judgment of insolvency or bankruptcy or seeking relief under bankruptcy or insolvency laws or similar laws affecting creditor's rights and such proceeding has not been dismissed prior to such thirtieth day; or (v) other events specified in the Trust Agreement.
Underlying Security Default. Unless otherwise specified in the Terms Schedule, (i) the failure to pay an installment of principal of, or any amount of interest due on, the Underlying Securities after the due date, and after the expiration of any applicable grace period or cure period (provided, however, that, if a Credit Support exists, then failure to pay may be modified in the Terms Schedule) and (ii) the occurrence of any event of default relating to bankruptcy or insolvency of the Underlying Security Issuer under the Underlying Securities and/or the Underlying Security Indenture, as applicable. An Underlying Security Default will be deemed to have occurred for all purposes of the Trust Agreement notwithstanding any subsequent payment (after the default and after any applicable grace period) of such overdue principal or interest.
Underlying Security Default. [If different from Trust Agreement, specify. Subject to confirmation from rating agencies, failure to pay may be modified if a Credit Support exists and the occurrence of a waiver, deferral, restructuring, rescheduling, exchange or other adjustment with respect to the Underlying Security such that the Swap Counterparty reasonably determines that the economic terms of the Underlying Security are materially different or the Underlying Security represents materially greater credit or other risks may be an Underlying Security Default.] Optional Exchange Terms: Trigger Amount: [ $50,000 ] Maximum Reimbursable Amount: [ o ] [Maximum Number of Obligors:] [If the total number of obligors in respect of Permitted Investments, Underlying Securities, Swap Agreements, Credit Support and other Deposited Assets will exceed ten, specify the number.] Other Terms: Schedule II (Terms of Trust Property) Underlying Securities ---------------------
Examples of Underlying Security Default in a sentence
If a Underlying Security Default occurs on or prior to the first Distribution Date and the Depositor does not receive such Retained Interest amount in connection with such Distribution Date, the Depositor will have a claim for such Retained Interest, and will share pro rata with holders of the Units to the extent of such claim in the proceeds from the recovery on the Underlying Securities.
If an Underlying Security Default occurs on or prior to the first Distribution Date and the Depositor does not receive such Retained Interest amount in connection with such Distribution Date, the Depositor will have a claim for such Retained Interest, and will share pro rata with holders of the Units to the extent of such claim in the proceeds from the recovery on the Underlying Securities.
More Definitions of Underlying Security Default
Underlying Security Default. Unless otherwise specified in the Terms Schedule, (i) the acceleration of the maturity of the Underlying Securities under the Underlying Securities and/or the Underlying Security Indenture, as applicable, whether by declaration of the Holders thereof, the Underlying Security Trustee or otherwise, (ii) the failure to pay an installment of principal of, or any amount of interest due on, the Underlying Securities after the due date, and after the expiration of any applicable grace period or cure period, (iii) the occurrence of any event of default relating to bankruptcy or insolvency of the Underlying Security Issuer under the Underlying Securities and/or the Underlying Security Indenture, as applicable or (iv) the occurrence of a waiver, deferral, restructuring, rescheduling, exchange or other adjustment with respect to the Underlying Security such that the Swap Counterparty reasonably determines that the economic terms of the Underlying Security are materially different or the Underlying Security represents materially greater credit or other risks. An Underlying Security Default will be deemed to have occurred for all purposes of the Trust Agreement notwithstanding any rescission or annulment of any such acceleration or any subsequent payment (after the default and after any applicable grace period) of such overdue principal or interest.
Underlying Security Default. [If different from Trust Agreement, specify. Subject to confirmation from rating agencies, failure to pay may be modified if a Credit Support exists and the occurrence of a waiver, deferral, restructuring, rescheduling, exchange or other adjustment with respect to the Underlying Security such that the Swap Counterparty reasonably determines that the economic terms of the Underlying Security are materially different or the Underlying Security represents materially greater credit or other risks may be an Underlying Security Default.] Optional Exchange Terms: Trigger Amount: [ $50,000 ] Maximum Reimbursable Amount: [ o ]