Collection Fund Clause Samples
The Collection Fund clause establishes a dedicated account or fund into which collected payments, such as loan repayments or receivables, are deposited and managed. Typically, this clause outlines the procedures for handling, distributing, and safeguarding these funds, often specifying the roles of trustees or agents in overseeing the account. Its core practical function is to ensure transparency and proper allocation of collected monies, thereby protecting the interests of all parties involved and reducing the risk of mismanagement or misuse of funds.
Collection Fund. The Trustee shall credit to the Collection Fund: (i) all amounts received as interest, including federal interest subsidy payments, late fees and principal payments with respect to Financed Student Loans, including all Guarantee payments, and all Special Allowance Payments with respect to Financed Student Loans (excluding, unless otherwise provided in a Supplemental Indenture, any federal interest subsidy payments and Special Allowance Payments that accrued prior to the date on which such Student Loans were Financed), (ii) unless otherwise provided in a Supplemental Indenture, proceeds of any sale of any Financed Student Loans as permitted by Section 4.2, (iii) amounts transferred thereto from the Acquisition Fund as provided in Section 4.2, the Administration Fund as provided in Section 4.3, the Reserve Fund as provided in Section 4.4, and the Alternative Loan Loss Reserve Fund as provided in Section 4.5, (iv) all amounts received as earnings on or income from Investment Securities in the Acquisition Fund, the Administration Fund, the Reserve Fund, the Alternative Loan Loss Reserve Fund, the Collection Fund, the Debt Service Fund and the Surplus Fund and (v) all Counterparty Swap Payments. The Issuer shall cause all amounts required to be credited to the Collection Fund, upon receipt by the Issuer or a Servicer, or any agent thereof, as the case may be, to be forthwith transmitted to the Trustee for such credit. On each Monthly Calculation Date, the Trustee shall transfer the moneys received during the preceding month in the Collection Fund, as follows:
(i) to make any payments due and payable by the Issuer to the U.S. Department of Education related to the Financed Student Loans or any other payment due and payable to a Guarantee Agency relating to its Guarantee of Financed Student Loans;
(ii) to the credit of the Administration Fund to the extent and in the manner provided in Section 4.3 hereof;
(iii) to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 hereof to provide for the payment of interest on Senior Notes or Other Senior Obligations (except termination payments due under Senior Swap Agreements as a result of Swap Counterparty default) payable therefrom;
(iv) to the credit of the Principal Account to the extent and in the manner provided in Section 4.7.2 hereof to provide for the payment of principal of Senior Notes at their Stated Maturity or on a Sinking Fund Payment Date, or the reimbursement of Seni...
Collection Fund. 45 Section 4.7
Collection Fund. There is established hereunder a Fund, held by the Indenture Trustee and designated the "Collection Fund", and established therein (a) the "Collection Account", (b) the "Note Payment Account", and (c) the "Expense Account". To the extent necessary or appropriate, the Issuer and the Indenture Trustee may establish additional Accounts hereunder, and subaccounts within any such Accounts established in the Collection Fund under this Section. The Indenture Trustee shall deposit to the credit of (a) the Collection Account and (b) the Expense Account in the Collection Fund the amounts required by the Terms Supplement.
Collection Fund. In connection with the Closing, Buyer shall deposit funds in the amount of $62,000 with the Escrow Agent (the "Collection Fund") to be governed by the terms set forth herein. The Collection Fund shall be available to compensate Buyer for certain obligations of the Bank and Sellers concerning uncollectible loans.
Collection Fund. There is established hereunder a Fund, held by the Indenture Trustee and designated the "Collection Fund", and established therein (a) the "Collection Account", (b) the "Note Payment Account", (c) the "Expense Account" and (d) the "Excess Surplus Account". To the extent necessary or appropriate, the Issuer and the Indenture Trustee may establish additional Accounts hereunder, and subaccounts within any such Accounts established in the Collection Fund under this Section. The Indenture Trustee shall deposit to the credit of (a) the Collection Account and (b) the Expense Account in the Collection Fund the amounts required by the Terms Supplement.
Collection Fund