Demand on Surety Bond Sample Clauses
The 'Demand on Surety Bond' clause outlines the process by which a party can formally request payment or performance from a surety under a bond agreement. Typically, this clause specifies the conditions that must be met before a demand can be made, such as providing written notice, substantiating the default of the principal, or submitting supporting documentation. For example, if a contractor fails to complete a project, the project owner may invoke this clause to require the surety to fulfill the contractor’s obligations or compensate for losses. The core function of this clause is to establish a clear and enforceable mechanism for accessing the protection offered by a surety bond, thereby mitigating the risk of non-performance or default.
Demand on Surety Bond. If the sum of the Series 2003-5 Letter of Credit Amount and the Series 2003-5 Available Reserve Account Amount will be less than the Principal Deficit Amount on any Distribution Date, then the Trustee shall make a demand on the Surety Bond by 12:00 noon (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to the Insured Principal Deficit Amount and shall cause the proceeds thereof to be deposited in the Series 2003-5 Distribution Account.
Demand on Surety Bond. If after giving effect to the deposit into the Series 2005-4 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) and all other amounts described in clauses (i), (ii) and (iii) of this Section 2.5(c), the amount to be deposited in the Series 2005-4 Distribution Account with respect to the Series 2005-4 Final Distribution Date is or will be less than the sum of the Class A-1 Outstanding Principal Amount and the Class A-2 Outstanding Principal Amount, or the Class A-3 Outstanding Principal Amount, as the case may be, then the Trustee shall make a demand on the Surety Bond by 12:00 noon (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to such insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2005-4 Distribution Account.
Demand on Surety Bond. If after giving effect to the deposit into the Series 2007-2 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) and all other amounts described in clauses (i), (ii) and (iii) of this Section 2.5(c), the amount to be deposited in the Series 2007-2 Distribution Account with respect to the Series 2007-2 Final Distribution Date is or will be less than the Series 2007-2 Outstanding Principal Amount then the Trustee shall make a demand on the Surety Bond by 12:00 noon (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to such insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2007-2 Distribution Account.
Demand on Surety Bond. If after giving effect to the deposit into the Series 2003-5 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) and all other amounts described in clauses (i), (ii) and (iii) of this Section 2.5(c), the amount to be deposited in the Series 2003-5 Distribution Account with respect to such Series 2003-5 Final Distribution Date is or will be less than the Class A-1 Outstanding Principal Amount or the Class A-2 Outstanding Principal Amount, as the case may be, then the Trustee shall make a demand on the Surety Bond by 12:00 p.m. (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to such insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2003-5 Distribution Account.
Demand on Surety Bond. If after giving effect to the deposit into the Series 2003-3 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) and all other amounts described in clauses (i), (ii) and (iii) of this Section 2.5(c), the amount to be deposited in the Series 2003-3 Distribution Account with respect to such Series 2003-3 Final Distribution Date is or will be less than the Class A-1 Outstanding Principal Amount, the Class A-2 Outstanding Principal Amount or the Class A-3 Outstanding Principal Amount, as the case may be, then the Trustee shall make a demand on the Surety Bond by 12:00 p.m. (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to such insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2003-3 Distribution Account.
Demand on Surety Bond. If after giving effect to the deposit into the Series 2002-1 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) of this Supplement and all other amounts described in clauses (i), (ii) and (iii) of this SECTION 2.5(c), the amount to be deposited in the Series 2002-1 Distribution Account with respect to such Series 2002-1 Final Distribution Date is or will be less than the Class A-1 Outstanding Principal Amount or the Class A-2 Outstanding Principal Amount, as the case may be, then the Trustee shall make a demand on the Surety Bond by 12:00 p.m. (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to such insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2002-1 Distribution Account.
Demand on Surety Bond. If after giving effect to the deposit into the Series 2003-4 Distribution Account of the amount to be deposited in accordance with Section 2.5(a) and all other amounts described in clauses (i), (ii) and (iii) of this Section 2.5(c), the amount to be deposited in the Series 2003-4 Distribution Account with respect to such Series 2003-4 Final Distribution Date is or will be less than the Class A-1 Outstanding Principal Amount, the sum of the Class A-2 Outstanding Principal Amount and the Class A-3 Outstanding Principal Amount or the Class A-4 Outstanding Principal Amount, as the case may be, then the Trustee shall make a demand on the Surety Bond by 12:00 p.m. (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to such insufficiency in accordance with the terms thereof and shall cause the proceeds thereof to be deposited in the Series 2003-4 Distribution Account.
Demand on Surety Bond. If the sum of the Series 2005-2 Letter of Credit Amount and the amount on deposit in the Series 2005-2 Reserve Account (after giving effect to the distribution of any amounts in the Series 2005-2 Reserve Account made pursuant to Section 2.3(d) on such Distribution Date) will be less than the Principal Deficit Amount on any Distribution Date, then the Trustee shall make a demand on the Surety Bond by 12:00 noon (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to the Insured Principal Deficit Amount and shall cause the proceeds thereof to be deposited in the Series 2005-2
Demand on Surety Bond. If the sum of the Series 2006-2 Letter of Credit Amount and the Series 2006-2 Available Reserve Account Amount will be less than the Principal Deficit Amount on any Distribution Date, then the Trustee shall make a demand on the Surety Bond by 12:00 noon (New York City time) on the second Business Day preceding such Distribution Date in an amount equal to the Insured Principal Deficit Amount in accordance with the terms of the Surety Bond and shall cause the proceeds thereof to be deposited in the Series 2006-2 Distribution Account. The Trustee shall uses the proceeds of any draw on the Surety Bond made pursuant to this paragraph solely for the purpose of making principal payments on the Series 2006-2 Notes.
Demand on Surety Bond. If the Administrator determines on the third Business Day prior to any Mandatory Decrease Date, that there will be insufficient funds available in the Series 2006-2 Collection Account to make a Decrease pursuant to Section 2.5(a)(ii) in an amount equal to the Mandatory Decrease Amount for such Mandatory Decrease Date, then the Administrator shall, on such Business Day, instruct the Trustee in writing to make a demand on the Surety Bond in an amount equal to such insufficiency in accordance with the terms of the Surety Bond prior to 12:00 noon (New York City time) on the second Business Day prior to such Mandatory Decrease Date, and the Trustee shall make such a demand on the Surety Bond and shall cause the proceeds thereof to be deposited into the Series 2006-2 Distribution Account to be paid to the Administrative Agent for distribution in accordance with Section 3.5(h)(ii). It shall be a condition precedent under the Surety Bond to payment of such shortfall that, on the applicable Mandatory Decrease Date, after giving effect to all payments to be made to the CP Conduit Purchaser on or prior to such Mandatory Decrease Date pursuant to the Asset Purchase Agreement with respect to such CP Conduit Purchaser, the aggregate amount paid thereunder to such CP Conduit Purchaser will be equal to the Liquidity Amount with respect to the Purchaser Group of which such Funding Agent and CP Conduit Purchaser are members, and the Trustee shall not submit such a claim unless it has received written notice from the related Funding Agent confirming that such condition will be satisfied on such Mandatory Decrease Date.