Accounts; Investment; Collection of Moneys Clause Samples
The "Accounts; Investment; Collection of Moneys" clause establishes the procedures and responsibilities for managing, investing, and collecting funds related to the agreement. It typically outlines how accounts are to be set up and maintained, specifies who is authorized to invest or withdraw funds, and details the process for collecting payments or other receivables. For example, it may require that all payments be deposited into a designated account and that investments be made only in approved instruments. The core function of this clause is to ensure proper handling and oversight of financial assets, reducing the risk of mismanagement and providing transparency in the flow of funds.
Accounts; Investment; Collection of Moneys. (a) The Trust hereby directs the Indenture Trustee to establish, on or before the Closing Date, at its Corporate Trust Office, one or more Eligible Accounts that shall collectively be the "Payment Account". The Indenture Trustee shall promptly deposit in the Payment Account (i) the Servicer Remittance Amount received by it from the Servicer on the Servicer Payment Date pursuant to the Sale and Servicing Agreement, (ii) any other funds from any deposits to be made by the Servicer pursuant to the Sale and Servicing Agreement, (iii) any amount required to be deposited in the Payment Account pursuant to this Section 8.01, (iv) all amounts received pursuant to Section 8.03 hereof, (v) any amount required to be deposited pursuant to Section 8.05 hereof, (vi) the Termination Price received by it from either the Majority Certificateholder or the Servicer on the Clean-up Call Date pursuant to Section 10.01, and (vii) all other amounts for the Mortgage Loan Pool received for deposit in the Payment Account, including the payment of any Loan Repurchase Price for a Mortgage Loan received by the Indenture Trustee. All amounts that are deposited from time to time in the Payment Account are subject to withdrawal by the Indenture Trustee for the purposes set forth in Sections 8.02 hereof. All funds withdrawn from the Payment Account pursuant to Section 8.02 hereof for the purpose of making payments to the Holders of Notes shall be applied in accordance with Sections 3.03 and 8.02 hereof.
(b) [Reserved]
(c) [Reserved]
(d) So long as no Default or Event of Default shall have occurred and be continuing, amounts held in the Accounts, other than the Note Insurance Payment Account, shall at the written direction of the Servicer be invested in Permitted Investments, which Permitted Investments shall mature no later than the Business Day preceding the immediately following Payment Date. All income or other gains, if any, from investment of moneys deposited in the Payment Account and Collection Account shall be for the benefit of the Servicer and on each Payment Date, any such amounts may be released from the Accounts and paid to the Servicer as part of its compensation for acting as Servicer. Any loss resulting from such investment of moneys deposited in an Account shall be reimbursed immediately as incurred to the related Account by the Servicer. Subject to Section 6.01 hereof and the preceding sentence, neither the Indenture Trustee nor the Servicer shall in any way be held liab...
Accounts; Investment; Collection of Moneys. (a) The Trust hereby directs the Indenture Trustee to establish, on or before the Closing Date, three Eligible Accounts that shall be the "Payment Accounts" for the Notes. Each Payment Account shall relate to one of each of the three Classes of Notes. The Indenture Trustee shall promptly deposit in the related Payment Account (i) the Servicer Remittance Amount for the related Group received by it from the Master Servicer on the Servicer Payment Date pursuant to the Sale and Servicing Agreement, (ii) any other funds from any deposits for such Group to be made by the Master Servicer pursuant to the Sale and Servicing Agreement, (iii) any amount for such Group required to be deposited in such Payment Account pursuant to this Section 8.01(c), (iv) all amounts for such Group received pursuant to Section 8.03 hereof, (v) the Termination Price received by it from the Sponsor on the related Clean-up Call Date pursuant to Section 10.01, (vi) on each Payment Date, in accordance with the Indenture Trustee's Remittance Report, (A) until the Shortfall Amount for the related Class, is paid in full, and (B) until the amount specified in clause (v) of Section 8.02 for such group is paid in full, in each case, first, pro rata from the Payment Account relating to each of the other Classes of Notes based on the amount of Net Monthly Excess Cashflow for such other Classes of Notes, to the extent of the Net Monthly Excess Cashflow from the related Groups of Mortgage Loans and second, from each Reserve Account, an amount equal to the product of (A) a fraction, the numerator of which is the amount on deposit in such Reserve Account and the denominator of which is the aggregate amounts on deposit in all three Reserve Accounts and (B) the Shortfall Amount after giving effect to this Section 8.01(a)(vi)(B) first, (vii) any amounts received from the related Pre-Funding Account, (viii) any amounts received from the Capitalized Interest Account allocable to such Payment Account, (ix) on each Payment Date, from each Reserve Account an amount equal to the product of (A) a fraction, the numerator of which is the amount on deposit in the such Reserve Account and the denominator of which is the aggregate amounts on deposit in all three Reserve Accounts and (B) the Reserve Account Release Amount, and (x) all other amounts for such Group received for deposit in such Payment Account, including the payment of any Loan Repurchase Price or Substitution Adjustment for a Mortgage Loan in such Grou...
Accounts; Investment; Collection of Moneys. (a) The Issuing Entity hereby directs the Indenture Trustee to establish, on or before the Closing Date, an Eligible Account that shall be the “Payment Account” for the Notes. The Indenture Trustee shall promptly upon receipt, deposit in the Payment Account and retain therein the Interest Remittance Amount and the Principal Remittance Amount remitted on each Servicer Remittance Date to the Indenture Trustee by the Servicer and any other funds from any deposits to be made by the Servicer pursuant to the Sale and Servicing Agreement. All amounts that are deposited from time to time in the Payment Account are subject to withdrawal by the Indenture Trustee for the purposes set forth in Section 8.01 hereof. All funds withdrawn from the Payment Account pursuant to this Section 8.01 for the purpose of making payments to the Holders of Notes shall be applied in accordance with this Section 8.01 and Section 3.03 hereof.
(b) On each Payment Date, the Indenture Trustee will apply the Available Funds to pay the Custodian Fees, the Owner Trustee Fees and the Indenture Trustee Fees for such Payment Date. On each Payment Date, funds will be applied in the following order of priority:
(i) Concurrently,