Gestation Collateral Sample Clauses
The Gestation Collateral clause defines the treatment and use of assets, typically loans or receivables, that are in the process of being originated but have not yet been fully funded or closed. In practice, this clause outlines how such in-progress assets are identified, tracked, and included as collateral in a financing arrangement, often specifying conditions under which they become eligible or ineligible as security. Its core function is to ensure that both parties understand the status and value of these developing assets, thereby reducing uncertainty and managing risk associated with collateral that is not yet fully realized.
Gestation Collateral. The Company may, from time to time, deliver a request to the Collateral Agent (or an Affiliate of the Collateral Agent) acting in its capacity as pool custodian, for the initial certification of Pledged Mortgages for purposes of creating a pool of Mortgage Loans to support the issuance of a FHLMC, FNMA or GNMA Security. Such request shall be in writing in the form of Exhibit 3.A to this Security Agreement, and such Pledged Mortgages shall constitute Gestation Mortgage Loans on the Business Day immediately following the Business Day on which such Pledged Mortgages are certified by the Collateral Agent (or an Affiliate of the Collateral Agent) in accordance with the standards of the applicable Federal Agency.
Gestation Collateral. By 10:30 a.m. on the day that Associates is converting any Dry Borrowing to a Gestation Borrowing, Associates shall execute and deliver to Administrative Agent a Collateral-Conversion Notice.