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 Senior Credit Facility Providers for the payment of principal of the Notes; (v) 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 Subordinate Notes or Other Subordinate Obligations (except termination payments due under Subordinate Swap Agreements as a result of Swap Counterparty default) payable therefrom; (vi) 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 Subordinate Notes at their Stated Maturity or on a Sinking Fund Payment Date, or the reimbursement of Subordinate Credit Facility Providers for the payment of principal of the Notes; (vii) to the credit of the Reserve Fund to the extent and in the manner provided in Section 4.4 hereof; (viii) 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 Junior Subordinate Notes or Other Junior Subordinate Obligations (except termination payments due under Junior Subordinate Swap Agreements as a result of Swap Counterparty default) payable therefrom; (ix) 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 Junior Subordinate Notes at their Stated Maturity or on a Sinking Fund Payment Date or the reimbursement of Junior Subordinate Credit Facility Providers for the payment of principal of the Notes; (x) to make such other payments or distributions as may be set forth in a Supplemental Indenture; (xi) during the Revolving Period, to the extent directed by Issuer Order, to the credit of the Acquisition Fund and, after the Revolving Period, to the extent directed by Issuer Order, to the credit of the Acquisition Fund an amount equal to any Add-On Loans required to be funded; (xii) to the credit of the Retirement Account, but only at the direction of the Issuer, to the extent and in the manner provided in Section 4.7.3 hereof for the redemption of, or distribution of principal with respect to, Notes (or the reimbursement of Credit Facility Providers for the payment of the Prepayment Price of the Notes); (xiii) to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 for the payment of Carry-Over Amounts (and interest thereon) with respect to the Senior Notes; (xiv) (but only if the Senior Asset Percentage would be at least 100% upon the application of such amounts), to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 for the payment of Carry-Over Amounts (and interest thereon) with respect to the Subordinate Notes; (xv) (but only if the Senior Asset Percentage and the Subordinate Asset Percentage would be at least 100% upon the application of such amounts), to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 for the payment of Carry-Over Amounts (and interest thereon) with respect to the Junior Subordinates Notes; (xvi) to the credit of the Interest Account for the payment of termination payments due under Senior Swap Agreements as a result of Swap Counterparty default; (xvii) to the credit of the Interest Account for the payment of termination payments due under Subordinate Swap Agreements as a result of Swap Counterparty default; (xviii) to the credit of the Interest Account for the payment of termination payments due under Junior Subordinate Swap Agreements as a result of Swap Counterparts defaults; and (xix) to the credit of the Surplus Fund in the manner provided in Section 4.8 hereof. Pending application of moneys in the Collection Fund, such moneys shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be retained therein.
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Sources: Indenture of Trust (Collegiate Funding Services Inc)
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 44 45 in the Collection Fund under this Section. The Indenture Trustee has deposited to the credit of (a) the Collection Account and (b) the Expense Account in the Collection Fund the amounts required by the Original Terms Supplement.
SECTION 5.5.1 COLLECTION ACCOUNT There shall credit be deposited to the Collection Fund: (i) Account all amounts received received, whether as principal, interest, including federal interest subsidy Interest Subsidy Payments, Special Allowance Payments, Guarantee payments, late fees and principal tuition refunds, repurchase payments with paid by Sellers pursuant to the Purchase Agreements or otherwise, in respect to of all Financed Student Loans, including interest on all Guarantee payments, and all Special Allowance Payments with respect to such Financed Student Loans (excluding, unless otherwise provided payable by the borrowers in a Supplemental Indenture, any federal interest subsidy payments and Special Allowance Payments that respect thereof accrued prior to the date on which such Student Loans were Financed), (ii) unless otherwise provided of acquisition thereof by the Indenture Trustee and included in a Supplemental Indenture, proceeds of any sale of any Financed Student Loans as permitted the purchase price thereof paid by Section 4.2, (iii) amounts transferred thereto from the Acquisition Fund as provided in Section 4.2, Indenture Trustee to 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 Sellers thereof; amounts received as earnings on or income from Investment Securities Eligible Investments included in the Acquisition Fund, balances of the Administration Fund, Funds and Accounts to the Reserve Fund, extent provided in Section 5.7 hereof; any Counterparty Exchange Payments; and proceeds of any sale of Financed Student Loans pursuant to Section 5.4 hereof to the Alternative Loan Loss Reserve Fund, the Collection Fund, the Debt Service Fund and the Surplus Fund and (v) all Counterparty Swap Paymentsextent required by such Section. The Issuer shall, and shall cause all amounts required to be credited to the Collection Fund, upon receipt by the Issuer or a each Seller and Servicer, in accordance with the applicable Purchase Agreement or any agent thereofServicing Agreement, as the case may be, to be forthwith transmitted transfer all Available Funds received by it to the Indenture Trustee, and the Indenture Trustee for shall, upon receipt of any such creditAvailable Funds, immediately deposit and credit such Available Funds to the Collection Account. Payment of rebate fees in respect of Consolidation Loans and any other amount owed by the Issuer with respect to Financed Student Loans to the Secretary of Education, any Guarantee Agency, any Servicer or the Indenture Trustee shall be made by the Indenture Trustee from funds available in the Collection Account. On each Monthly Calculation Distribution Date, the Indenture Trustee shall transfer the moneys received during the preceding month in from the Collection Fund, as follows:
(i) to make any payments due and payable by Account 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 amounts 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 Senior Credit Facility Providers for the payment of principal of the Notes;
(v) 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 Subordinate Notes or Other Subordinate Obligations (except termination payments due under Subordinate Swap Agreements as a result of Swap Counterparty default) payable therefrom;
(vi) 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 Subordinate Notes at their Stated Maturity or on a Sinking Fund Payment Date, or the reimbursement of Subordinate Credit Facility Providers for the payment of principal of the Notes;
(vii) to the credit of the Reserve Fund to the extent and in the manner provided in Section 4.4 hereof;
(viii) 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 Junior Subordinate Notes or Other Junior Subordinate Obligations (except termination payments due under Junior Subordinate Swap Agreements as a result of Swap Counterparty default) payable therefrom;
(ix) 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 Junior Subordinate Notes at their Stated Maturity or on a Sinking Fund Payment Date or the reimbursement of Junior Subordinate Credit Facility Providers for the payment of principal of the Notes;
(x) to make such other payments or distributions as may be priority set forth in a Supplemental Indenture;
(xi) during the Revolving Period, to the extent directed by Issuer Order, to the credit Article IV of the Acquisition Fund and, after the Revolving Period, to the extent directed by Issuer Order, to the credit of the Acquisition Fund an amount equal to any Add-On Loans required to be funded;
(xii) to the credit of the Retirement Account, but only at the direction of the Issuer, to the extent and in the manner provided in Section 4.7.3 hereof for the redemption of, or distribution of principal with respect to, Notes (or the reimbursement of Credit Facility Providers for the payment of the Prepayment Price of the Notes);
(xiii) to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 for the payment of Carry-Over Amounts (and interest thereon) with respect to the Senior Notes;
(xiv) (but only if the Senior Asset Percentage would be at least 100% upon the application of such amounts), to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 for the payment of Carry-Over Amounts (and interest thereon) with respect to the Subordinate Notes;
(xv) (but only if the Senior Asset Percentage and the Subordinate Asset Percentage would be at least 100% upon the application of such amounts), to the credit of the Interest Account to the extent and in the manner provided in Section 4.7.1 for the payment of Carry-Over Amounts (and interest thereon) with respect to the Junior Subordinates Notes;
(xvi) to the credit of the Interest Account for the payment of termination payments due under Senior Swap Agreements as a result of Swap Counterparty default;
(xvii) to the credit of the Interest Account for the payment of termination payments due under Subordinate Swap Agreements as a result of Swap Counterparty default;
(xviii) to the credit of the Interest Account for the payment of termination payments due under Junior Subordinate Swap Agreements as a result of Swap Counterparts defaults; and
(xix) to the credit of the Surplus Fund in the manner provided in Section 4.8 hereof. Pending application of moneys in the Collection Fund, such moneys shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be retained thereinTerms Supplement.
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