Derivative Contracts. (a) The Owner Trustee shall, at the direction of the Master Servicer, on behalf of the Trust Estate, enter into Derivative Contracts, solely for the benefit of the Certificateholder. Any such Derivative Contract shall constitute a fully prepaid agreement. The Master Servicer shall determine, in its sole discretion, whether any Derivative Contract conforms to the requirements of Section 5.06(b) and (c). All collections, proceeds and other amounts in respect of the Derivative Contracts payable by the Derivative Counterparty shall be distributed to the Certificateholder on the Payment Date following receipt thereof by the Owner Trustee.
Appears in 13 contracts
Samples: Trust Agreement (Home Loan Trust 2006-Hi2), Trust Agreement (Home Loan Trust 2006-Hi3), Trust Agreement (Home Loan Trust 2006-Hi1)
Derivative Contracts. (a) The Owner Trustee shall, at the direction of the Master Servicer, on behalf of the Trust Estate, enter into Derivative Contracts, solely for the benefit of the Certificateholder. Any such Derivative Contract shall constitute a fully prepaid agreement. The Master Servicer shall determine, in its sole discretion, whether any Derivative Contract conforms to the requirements of Section 5.06(b) and (c). All collections, proceeds and other amounts in respect of the Derivative Contracts payable by the Derivative Counterparty shall be distributed to the Certificateholder on the Payment Date following receipt thereof by the Owner Trustee.
Appears in 3 contracts
Samples: Owner Trust Agreement (Residential Funding Mortgage Securities Ii Inc), Owner Trust Agreement (Residential Funding Mortgage Securities Ii Inc), Owner Trust Agreement (Residential Fund Mort Sec Home Loan-BCKD NTS Ser 2004-Hi1)
