Collateral Account Funds Sample Clauses
The 'Collateral Account Funds' clause defines how funds held in a collateral account are managed and governed within the context of an agreement. Typically, this clause outlines the types of assets or cash that may be deposited, the rights and obligations of the parties regarding withdrawals or transfers, and any restrictions on the use of these funds. For example, it may specify that the funds are to be used solely as security for obligations under the contract and cannot be accessed for other purposes. The core function of this clause is to ensure that collateral is properly segregated and protected, thereby reducing credit risk and providing assurance to the secured party that the funds will be available if needed.
Collateral Account Funds. Payments on the Collateral received by the Third Party shall be paid over to the Bank.
Collateral Account Funds. (a) Payments on the Collateral received by the Servicer or by WFS as servicer under the WFS Sale and Servicing Agreement shall be paid over to the Bank or WFAL2 as pledgor of such Collateral free of the lien created by this Agreement until the Servicer or WFS shall have received a Controlling Party Notice specifying that a Default has occurred and is continuing. After receipt of such a Controlling Party Notice, the Servicer and WFS shall transfer to the Master Collateral Agent any moneys received by it on or in respect of the Collateral for deposit in the Collateral Account.
(b) Following delivery of a Controlling Party Notice, all payments made to the Master Collateral Agent on, or otherwise received by the Master Collateral Agent in respect of, any Collateral shall be deposited on the date of receipt by the Master Collateral Agent in the Collateral Account. Any income received by the Master Collateral Agent with respect to the balance from time to time credited to the Collateral Account, including any interest or capital gains on investments, shall be deposited in the Collateral Account. All right, title and interest in and to the funds on deposit from time to time in the Collateral Account, together with any investments made pursuant to paragraph (c) below, shall vest in the Master Collateral Agent, shall constitute part of the Collateral hereunder and shall not constitute payment of any Master Secured Obligations until applied as specified herein.
(c) Amounts, if any, on deposit in the Collateral Account shall be invested and re-invested from time to time in such investments as shall be specified by instructions (which may include, subject to the other provisions hereof, general standing instructions) given to the Master Collateral Agent by the Controlling Party; provided that if the Master Collateral Agent receives a Controlling Party Notice, the Master Collateral Agent shall, if instructed by the Controlling Party, liquidate any such investments and apply or cause to be applied the proceeds thereof to the payment of the Master Secured Obligations in the manner specified in Section 3.03(d) hereof. If no such instruction with respect to investment of any portion of the Collateral Account is received by the Master Collateral Agent, no investment shall be made of such portion and the Master Collateral Agent shall not be liable for any resulting absence of income.
(d) The Master Collateral Agent or its affiliates are permitted to receive additional compen...
Collateral Account Funds. The Acquiror shall have received the opinion of ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP, outside counsel to the Seller, substantially in the form of Exhibit J.
Collateral Account Funds. (a) Payments on the Collateral received by the Servicer shall be paid over to the Bank or WFAL 2 as pledgor of such Collateral free of the lien created by this Agreement until the Servicer shall have received an FSA Notice specifying that a Default has occurred and is continuing. After receipt of such an FSA Notice, the Servicer shall transfer to the Master Collateral Agent any moneys received by it on or in respect of the Collateral for deposit in the Collateral Account.
(b) Following delivery of an FSA Notice, all payments made to the Master Collateral Agent on or otherwise received by the Master Collateral Agent in respect of any Collateral shall be deposited on the date of receipt by the Master Collateral Agent in the Collateral Account. Any income received by the Master Collateral Agent with respect to the balance from time to time credited to the Collateral Account, including any interest or capital gains on investments, shall be deposited in the Collateral Account. All right, title and interest in and to the funds on deposit from time to time in the Collateral Account, together with any investments made pursuant to paragraph (c) below, shall vest in the Master Collateral Agent, shall constitute part of
Collateral Account Funds. Each Pledgor hereby acknowledges and agrees that notwithstanding any provisions hereof or any other circumstance to the contrary, Collateral Agent shall at all times (A) have "control" (as defined in Section 9-104 of the UCC) of the Collateral Account and all Collateral Account Funds, as may be confirmed in one or more Control Agreements, and (B) be authorized in writing to direct the institution maintaining the Collateral Account or any Collateral Account Funds to comply without further consent of any Pledgor or any person acting or purporting to act for any Pledgor being required, with all instructions originated by Collateral Agent. Collateral Agent hereby agrees that it shall not issue any such instructions to any institution maintaining the Collateral Account or any Collateral Account Funds except in connection with Collateral Agent's exercise of remedies upon the occurrence of an Event of Default.
Collateral Account Funds. 14 Section 3.04. General Provisions Regarding the Accounts..............................................15 Section 3.05. FSA Notices............................................................................16 Section 3.06. Representations by the Bank and WFAL 2.................................................16