Common use of Cap Contracts Clause in Contracts

Cap Contracts. (a) On or prior to the Closing Date, the Trustee, on behalf of the Trust Fund, is hereby authorized to, and will enter into (i) Cap Contract A for the benefit of the Holders of the Group I and Subordinated Certificates and (ii) Cap Contract B for the benefit of the Holders of the Group II and Subordinated Certificates. The Cap Contracts 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 either of the Cap Contracts. (c) The Trustee shall terminate the Cap Contract Counterparty with respect to a Cap Contract upon the occurrence of an event of default under the applicable 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 applicable Cap Contract. Any such amounts shall be held in the Excess Reserve Fund Account and applied as necessary until the applicable Cap Contract termination date. (d) The Trustee shall deposit any amounts received on the Cap Contracts into the Excess Reserve Fund and distribute such amounts as provided in Section 4.02(IV)(except as set forth in (c) above).

Cap Contracts. (a) On or prior to the Closing Date, the Trustee, on behalf of the Trust Fund, is hereby authorized to, and will enter into (i) Cap Contract A for the benefit of the Holders of the Group Class A-I and Subordinated Certificates and (ii) Cap Contract B for the benefit of the Holders of the Group II and Subordinated Certificates. The Cap Contracts 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 either of the Cap Contracts. (c) The Trustee shall terminate the Cap Contract Counterparty with respect to a Cap Contract upon the occurrence of an event of default under the applicable 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 applicable Cap Contract. Any such amounts shall be held in the Excess Reserve Fund Account and applied as necessary until the applicable Cap Contract termination date. (d) The Trustee shall deposit any amounts received on the Cap Contracts into the Excess Reserve Fund and distribute such amounts as provided in Section 4.02(IV)(except as set forth in (c) above).