COLLECTIONS OF THE STUDENT LOANS. In order to facilitate the servicing of the Student Loans by the Servicer of such Student Loans, the Servicing Agreement provides that the Servicer shall retain, in accordance with the provisions of the Servicing Agreement and this Indenture, all collections on such Student Loans prior to the time they are deposited into the Collateral Proceeds Account or the Reserve Fund. The Trustee hereby designates the Servicer as its agent and bailee to hold such collections on such Student Loans until they are deposited into the Collateral Proceeds Account or the Reserve Fund. By the designation pursuant to this Section and the acceptance of such designation by the Servicer of a Student Loan pursuant to the Servicing Agreement, the Trustee, as secured party, has possession of all collections on the Student Loans for purposes of Section 9-305 of the Uniform Commercial Code as in effect in Massachusetts.
COLLECTIONS OF THE STUDENT LOANS. SECTION 3.08
COLLECTIONS OF THE STUDENT LOANS. In order to facilitate the servicing of the Student Loans by the Servicer of such Student Loans, the Servicing Agreement provides that the Servicer shall retain, in accordance with the provisions of the Servicing Agreement and this Indenture, all collections on such Student Loans prior to the time they are deposited into the Collateral Proceeds Account or the Reserve Fund. The Trustee hereby designates the Servicer as its agent and bailee to hold such collections on such Student Loans until they are deposited into the Collateral Proceeds Account or the Reserve Fund. By the designation pursuant to this Section and the acceptance of such designation by the Servicer of a Student Loan pursuant to the Servicing Agreement, the Trustee, as secured party, has possession of all collections on the Student Loans for purposes of Section 9-305 of the Uniform Commercial Code as in effect in Massachusetts, Pennsylvania, Delaware and New York for the benefit of the Bondholders and the Bond Insurers.
