Final distribution on the residual certificates Clause Samples
The "Final distribution on the residual certificates" clause defines how any remaining funds or assets are distributed to holders of residual certificates at the conclusion of a trust or securitization. Typically, after all obligations to senior certificate holders and other expenses have been satisfied, any leftover amounts are allocated to the residual certificate holders, who often bear the highest risk and receive payment last. This clause ensures a clear and orderly process for winding up the trust and allocating any remaining value, thereby providing certainty and transparency to all parties involved.
Final distribution on the residual certificates. Upon termination of the Trust in accordance with section 9.1, “Termination upon repurchase by CMSI or liquidation of all mortgage loans,” any class PR certificates, and if there are no class PR certificates, the LR certificates will receive all amounts remaining in the certificate account and in any retail reserve fund after all required distributions on the certificates, and any required distributions to any Insurer, have been made.