Common use of Cap Contract Clause in Contracts

Cap Contract. (a) On or prior to the Closing Date, the Trustee, on behalf of the Trust Fund, will enter into the Cap Contract for the benefit of the Holders of the Adjustable Rate Certificates. The Cap Contract will be an asset of the Trust Fund but will not be an asset of any REMIC. (b) The Trustee will prepare and deliver any notices required to be delivered to the Cap Contract Counterparty under the Cap Contract. (c) The Trustee shall terminate the Cap Contract Counterparty with respect to the Cap Contract upon the occurrence of an event of default under the Cap Contract of which a Responsible Officer of the Trustee has actual knowledge. Upon such termination, Cap Contract Counterparty may be required to pay an amount to the Trustee in respect of market quotations for the replacement cost of the Cap Contract. Any such amounts shall be held in the Excess Reserve Fund Account and applied as necessary until the Cap Contract termination date.