Backed Security Clause Samples
The Backed Security clause defines the requirement for a party to provide a form of financial guarantee or collateral to secure its obligations under an agreement. This may involve posting a letter of credit, a performance bond, or other acceptable security instruments to assure the other party that commitments will be fulfilled. By requiring such backing, the clause mitigates the risk of non-performance or default, ensuring that there are tangible resources available to cover losses or enforce compliance if necessary.
Backed Security. Except as otherwise expressly provided herein, the Indenture Trustee shall hold all such money and property received by it as part of the Trust Estate with respect to the Series for which it was received and shall apply it as provided in this Indenture. All claims on and draws under any Enhancement in respect of any Series shall be made by the Indenture Trustee or other specified Person in accordance with the applicable Terms Indenture and/or any applicable Servicing and Administration Agreement. In the event that in any month any Paying Agent shall not have received when due a payment required to be made thereto with respect to any item or items of Mortgage Collateral in accordance with the respective terms and conditions of the document or documents pursuant to which such Mortgage Collateral is being serviced and administered, in the case of a Pledged Mortgage Loan or REO Property, or was issued, in the case of a Pledged Mortgage-Backed Security, such Paying Agent shall promptly notify the Indenture Trustee (except in the case where the Indenture Trustee is the Paying Agent), and in any event (subject to the terms and conditions of the applicable Terms Indenture or any applicable Servicing and Administration Agreement) the Indenture Trustee shall, unless within three Business Days following the date on which such payment was scheduled to be made, such payment shall subsequently have been received by the Indenture Trustee or other Paying Agent or unless the Issuer makes provisions for such payment satisfactory to the Indenture Trustee, as soon as practicable thereafter request the designated paying agent for such item or items of Mortgage Collateral to make such payment on the earliest day permitted following such request. The Indenture Trustee may withdraw such request upon subsequent receipt of such payment. Notwithstanding any other provision hereof, the Paying Agent shall deliver to the Issuer or its designee any payment with respect to any item of Mortgage Collateral received after the scheduled date of receipt to the extent the Issuer or its designee previously made provisions for such payment satisfactory to the Paying Agent in accordance with this Section 8.01, and such payment shall not be deemed part of the Trust Estate for any Series. Except as otherwise expressly provided in the related Terms Indenture, if following any request by the Indenture Trustee for payment of a late payment in accordance with the preceding paragraph, any default occurs...