Interest Account. With respect to each series of Class A Notes or Class B Notes, the Trustee shall, upon delivery to the original purchasers thereof and from the proceeds thereof, credit to the Interest Account the amount, if any, specified in the Supplemental Indenture providing for the issuance of such series of Notes. The Trustee shall also deposit in the Interest Account (i) that portion of the proceeds from the sale of Financed Student Loans as is specified in Section 4.2 hereof, (ii) that portion of the proceeds from the sale of the Corporation's bonds, notes or other evidences of indebtedness, if any, to be used to pay interest on the Class A Notes or the Class B Notes, (iii) all Counterparty Swap Payments, (iv) all payments under any Credit Enhancement Facilities by Credit Facility Providers to be used to pay interest on Class A Notes or Class B Notes, and (v) all amounts required to be transferred thereto from the Funds and Accounts specified in the last sentence of the following paragraph. The moneys in the Interest Account shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be deposited in the Revenue Fund as provided in Section 4.6 hereof. To provide for the payment of each installment of interest which falls due upon Class A Notes or Class B Notes on each regularly scheduled Interest Payment Date and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date, the Trustee shall make six (6) equal monthly deposits to the credit of the Interest Account not later than the six (6) Monthly Payment Dates preceding such Interest Payment Date, to aggregate the full amount of such interest, payment and fees, except that if the first such Interest Payment Date occurs in six (6) months and fifteen (15) days or less from the date on which the Class A Notes or Class B Notes of such series are delivered to the initial purchasers thereof, then the Trustee shall make equal monthly deposits to the credit of the Interest Account not later than each Monthly Payment Date beginning with the calendar month following the calendar month in which such Notes are delivered to the initial purchasers and ending with the last such Monthly Payment Date prior to such first Interest Payment Date (provided, however, with respect to any Variable Rate Notes, deposits shall be made in an amount equal to the interest accrued on such Notes from the last previous Monthly Payment Date or regularly scheduled Interest Payment Date therefor, whichever is later, to that Monthly Payment Date or, in the case of the last Monthly Payment Date preceding a regularly scheduled Interest Payment Date, to such regularly scheduled Interest Payment Date), to aggregate the full amount of such interest, payment and fees, and except that the Corporation shall receive a credit against such payments for any accrued Counterparty Swap Payments that are to be paid on or before the next regularly scheduled Interest Payment Date if the Swap Counterparty is not then in default in its obligations under the Swap Agreement and if the Swap Counterparty or any obligor under a related Swap Counterparty Guarantee has unsecured long-term debt rated by each Rating Agency in any of its three (3) highest Rating Categories. Anything in this paragraph to the contrary notwithstanding, the Trustee shall, if so instructed in writing by an Authorized Officer of the Corporation, deposit to the credit of the Interest Account on any Monthly Payment Date for any installment of interest a larger amount than is required to be made on such Monthly Payment Date. If, on any Interest Payment Date (including any Redemption Date occurring on a date that is not a regularly scheduled Interest Payment Date) or other date on which Class A Notes or Class B Notes are to be purchased in accordance with Section 4.7.2(F) or 4.7.3 hereof, moneys in the Interest Account are insufficient to pay the accrued interest due on the Class A Notes and Class B Notes and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date or constituting a portion of the purchase price of Notes to be so purchased, the Trustee shall immediately deposit to the credit of the Interest Account an amount equal to such deficiency. In making the deposits required to be deposited and credited to the Interest Account, the amounts credited to the Interest Account pursuant to the first two (2) sentences of this Section 4-11 and other deposits and credits otherwise made or required to be made to the Interest Account shall, to the extent available for such purpose, be taken into consideration and allowed for. Each deposit required by this Section 4.7.1 to pay the foregoing amounts shall be made by transfer from the following Funds and Accounts, in the following order of priority: the Revenue Fund, the Surplus Fund (other than that portion of the Balance thereof consisting of Eligible Loans), the Reserve Fund, the Administration Fund, the Surplus Fund (including any portion of the Balance thereof consisting of Eligible Loans), the Retirement Account, the Principal Account and, as to Class A Notes and Other Senior Obligations only, the Acquisition Fund (other than that portion of the Balance thereof consisting of Student Loans); provided that such transfers shall be made from the Retirement Account or the Principal Account in respect of Subordinate Obligations only if, and to the extent, any amounts to be so transferred are in excess of the requirements of such Accounts with respect to Senior Obligations payable therefrom. If, as of any regularly scheduled Interest Payment Date, any Carry-Over Amount (including any accrued interest thereon) is due and payable with respect to a series of Notes, as provided in the related Supplemental Indenture, the Trustee shall transfer to the Interest Account (to the extent amounts are available therefor in the Surplus Account in accordance with the second paragraph of Section 4.8 hereof, after taking into account all other amounts payable from the Surplus Fund in accordance with such paragraph on such Interest Payment Date) an amount equal to such Carry-Over Amount (including any accrued interest thereon) so due and payable. The Trustee shall make payment of any Carry-Over Amount (and any interest accrued thereon) on an Interest Payment Date in the same manner as it pays interest on the related series of Notes on such Interest Payment Date. The moneys in the Interest Account required for the payment of interest on the Class A Notes or the Class B Notes of any series (including, without limitation, the payment of that portion of the purchase price of Class A Notes or Class B Notes purchased pursuant to Section 4.7.2(F) or 4.7.3 hereof attributable to accrued interest thereon), any Corporation Swap Payments or fees payable to a Credit Facility Provider under a Credit Enhancement Facility or Demand Purchase Agreement or any Carry-Over Amount (including any accrued interest thereon) shall be applied by the Trustee to the payment of such interest or amounts when due without further authorization or direction. Balances in the Interest Account shall be transferred to the credit of the Indemnification Fund to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund, the Administration Fund, the Retirement Account and the Principal Account, to make any deposit to the credit of the Indemnification Fund required by Section 4.5 hereof. Balances in the Interest Account shall be transferred to the credit of the Principal Account to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund and the Administration Fund, to make payment of the principal and purchase price of Class A Notes, as provided in Section 4.7.2 hereof. The moneys in the Interest Account required for (A) transfer to the Indemnification Fund as hereinbefore provided shall be transferred to such Fund without further
Appears in 1 contract
Interest Account. With respect to each series of Class A Notes or Class B Notes, the Trustee shall, upon delivery to the original purchasers thereof and from the proceeds thereof, credit to the Interest Account the amount, if any, specified in the Supplemental Indenture providing for the issuance of such series of Notes. The Trustee shall also deposit in the Interest Account (i) that portion of the proceeds from the sale of Financed Student Loans as is specified in Section 4.2 hereof, (ii) that portion of the proceeds from the sale of the Corporation's bonds, notes or other evidences of indebtedness, if any, to be used to pay interest on the Class A Notes or the Class B Notes, (iii) all Counterparty Swap Payments, (iv) all payments under any Credit Enhancement Facilities by Credit Facility Providers to be used to pay interest on Class A Notes or Class B Notes, and (v) all amounts required to be transferred thereto from the Funds and Accounts specified in the last sentence of the following paragraph. The moneys in the Interest Account shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be deposited in the Revenue Fund as provided in Section 4.6 hereof. To provide for the payment of each installment of interest which falls due upon Class A Notes or Class B Notes on each regularly scheduled Interest Payment Date and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date, the Trustee shall make six (6) equal monthly deposits to the credit of the Interest Account not later than the six (6) Monthly Payment Dates preceding such Interest Payment Date, to aggregate the full amount of such interest, payment and fees, except that if the first such Interest Payment Date occurs in six (6) months and fifteen (15) days or less from the date on which the Class A Notes or Class B Notes of such series are delivered to the initial purchasers thereof, then the Trustee shall make equal monthly deposits to the credit of the Interest Account not later than each Monthly Payment Date beginning with the calendar month following the calendar month in which such Notes are delivered to the initial purchasers and ending with the last such Monthly Payment Date prior to such first Interest Payment Date (provided, however, with respect to any Variable Rate Notes, deposits shall be made in an amount equal to the interest accrued on such Notes from the last previous Monthly Payment Date or regularly scheduled Interest Payment Date therefor, whichever is later, to that Monthly Payment Date or, in the case of the last Monthly Payment Date preceding a regularly scheduled Interest Payment Date, to such regularly scheduled Interest Payment Date), to aggregate the full amount of such interest, payment and fees, and except that the Corporation shall receive a credit against such payments for any accrued Counterparty Swap Payments that are to be paid on or before the next regularly scheduled Interest Payment Date if the Swap Counterparty is not then in default in its obligations under the Swap Agreement and if the Swap Counterparty or any obligor under a related Swap Counterparty Guarantee has unsecured long-term debt rated by each Rating Agency in any of its three (3) highest Rating Categories. Anything in this paragraph to the contrary notwithstanding, the Trustee shall, if so instructed in writing by an Authorized Officer of the Corporation, deposit to the credit of the Interest Account on any Monthly Payment Date for any installment of interest a larger amount than is required to be made on such Monthly Payment Date. If, on any Interest Payment Date (including any Redemption Date occurring on a date that is not a regularly scheduled Interest Payment Date) or other date on which Class A Notes or Class B Notes are to be purchased in accordance with Section 4.7.2(F) or 4.7.3 hereof, moneys in the Interest Account are insufficient to pay the accrued interest due on the Class A Notes and Class B Notes and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date or constituting a portion of the purchase price of Notes to be so purchased, the Trustee shall immediately deposit to the credit of the Interest Account an amount equal to such deficiency. In making the deposits required to be deposited and credited to the Interest Account, the amounts credited to the Interest Account pursuant to the first two (2) sentences of this Section 4-11 and other deposits and credits otherwise made or required to be made to the Interest Account shall, to the extent available for such purpose, be taken into consideration and allowed for. Each deposit required by this Section 4.7.1 to pay the foregoing amounts shall be made by transfer from the following Funds and Accounts, in the following order of priority: the Revenue Fund, the Surplus Fund (other than that portion of the Balance thereof consisting of Eligible Loans), the Reserve Fund, the Administration Fund, the Surplus Fund (including any portion of the Balance thereof consisting of Eligible Loans), the Retirement Account, the Principal Account and, as to Class A Notes and Other Senior Obligations only, the Acquisition Fund (other than that portion of the Balance thereof consisting of Student Loans); provided that such transfers shall be made from the Retirement Account or the Principal Account in respect of Subordinate Obligations only if, and to the extent, any amounts to be so transferred are in excess of the requirements of such Accounts with respect to Senior Obligations payable therefrom. If, as of any regularly scheduled Interest Payment Date, any Carry-Over Amount (including any accrued interest thereon) is due and payable with respect to a series of Notes, as provided in the related Supplemental Indenture, the Trustee shall transfer to the Interest Account (to the extent amounts are available therefor in the Surplus Account in accordance with the second paragraph of Section 4.8 hereof, after taking into account all other amounts payable from the Surplus Fund in accordance with such paragraph on such Interest Payment Date) an amount equal to such Carry-Over Amount (including any accrued interest thereon) so due and payable. The Trustee shall make payment of any Carry-Over Amount (and any interest accrued thereon) on an Interest Payment Date in the same manner as it pays interest on the related series of Notes on such Interest Payment Date. The moneys in the Interest Account required for the payment of interest on the Class A Notes or the Class B Notes of any series (including, without limitation, the payment of that portion of the purchase price of Class A Notes or Class B Notes purchased pursuant to Section 4.7.2(F) or 4.7.3 hereof attributable to accrued interest thereon), any Corporation Swap Payments or fees payable to a Credit Facility Provider under a Credit Enhancement Facility or Demand Purchase Agreement or any Carry-Over Amount (including any accrued interest thereon) shall be applied by the Trustee to the payment of such interest or amounts when due without further authorization or direction. Balances in the Interest Account shall be transferred to the credit of the Indemnification Fund to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund, the Administration Fund, the Retirement Account and the Principal Account, to make any deposit to the credit of the Indemnification Fund required by Section 4.5 hereof. Balances in the Interest Account shall be transferred to the credit of the Principal Account to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund and the Administration Fund, to make payment of the principal and purchase price of Class A Notes, as provided in Section 4.7.2 hereof. The moneys in the Interest Account required for (A) transfer to the Indemnification Fund as hereinbefore provided shall be transferred to such Fund without further.
Appears in 1 contract
Samples: Education Loans Inc /De
Interest Account. With respect to each series of Class A Notes or Class B Notes, the Trustee shall, upon delivery to the original purchasers thereof and from the proceeds thereof, credit to the Interest Account the amount, if any, specified in the Supplemental Indenture providing for the issuance of such series of Notes. The Trustee shall also deposit in the Interest Account (i) that portion of the proceeds from the sale of Financed Student Loans as is specified in Section 4.2 hereof, (ii) that portion of the proceeds from the sale of the CorporationIssuer's refunding bonds, notes or other evidences of indebtedness, if any, to be used to pay interest on the Class A Notes or the Class B Notes, (iii) all Counterparty Swap Payments, (ivii) all payments under any Credit Enhancement Facilities by Credit Facility Providers to be used to pay interest on Class A Notes or Class B Notes, and (viii) all amounts required to be transferred thereto from the Funds and Accounts specified in the last sentence this Section 4.7.1. With respect to each series of the following paragraph. The moneys in the Interest Account shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be deposited in the Revenue Fund as provided in Section 4.6 hereof. To provide for the payment of each installment of interest which falls due upon Class A Notes or Class B Notes on each regularly scheduled Interest Payment Date and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Datewhich interest is paid at intervals of less than every 60 days, the Trustee shall make six (6) equal monthly deposits deposit to the credit of the Interest Account not later than on each Monthly Calculation Date an amount equal to the six (6) Monthly Payment Dates preceding interest that will become payable on such Interest Payment Date, Notes during the following calendar month. With respect to aggregate the full amount each series of such interest, payment and fees, except that if the first such Interest Payment Date occurs in six (6) months and fifteen (15) days or less from the date Notes on which the Class A Notes or Class B Notes interest is paid at intervals of such series are delivered to the initial purchasers thereofmore than every 60 days, then the Trustee shall make equal monthly deposits to the credit of the Interest Account not later than on each Monthly Payment Date beginning with the calendar month following the calendar month in which such Notes are delivered to the initial purchasers and ending with the last such Monthly Payment Date prior to such first Interest Payment Date (provided, however, with respect to any Variable Rate Notes, deposits shall be made in an amount equal to the interest accrued on such Notes from the last previous Monthly Payment Date or regularly scheduled Interest Payment Date therefor, whichever is later, to that Monthly Payment Date or, in the case of the last Monthly Payment Calculation Date preceding a regularly scheduled each Interest Payment Date, to such regularly scheduled Interest Payment Date), to aggregate the full amount of such interest, payment and fees, and except that . With respect to Variable Rate Notes for which any such amount cannot be determined on the Corporation shall receive a credit against such payments for any accrued Counterparty Swap Payments that are to be paid on or before the next regularly scheduled Interest Payment Date if the Swap Counterparty is not then in default in its obligations under the Swap Agreement and if the Swap Counterparty or any obligor under a related Swap Counterparty Guarantee has unsecured long-term debt rated by each Rating Agency in any of its three (3) highest Rating Categories. Anything in this paragraph to the contrary notwithstandingMonthly Calculation Date, the Trustee shallwill make such deposit based upon assumptions set forth in the Supplemental Indenture authorizing such Notes. With respect to each Swap Agreement under which Issuer Swap Payments are paid no less frequently than every 60 days, if so instructed in writing by an Authorized Officer of the Corporation, Trustee shall deposit to the credit of the Interest Account on any each Monthly Payment Calculation Date for any installment of interest a larger an amount than is required equal to be made on such Monthly Payment Date. If, on any Interest Payment Date (including any Redemption Date occurring on a date that is not a regularly scheduled Interest Payment Date) or other date on which Class A Notes or Class B Notes are to be purchased in accordance with Section 4.7.2(F) or 4.7.3 hereof, moneys in the Interest Account are insufficient to pay the accrued interest due on the Class A Notes and Class B Notes and all Corporation Issuer Swap Payments and fees that will become payable under such Swap Agreement during the following calendar month. With respect to a Credit Facility Provider payable on such Interest Payment Date or constituting a portion of the purchase price of Notes to be so purchasedeach Swap Agreement under which Issuer Swap Payments are paid less frequently than every 60 days, the Trustee shall immediately make equal monthly deposits to the credit of the Interest Account on each Monthly Calculation Date preceding each date on which such Issuer Swap Payments are due, to aggregate the full amount of such Issuer Swap Payments. With respect to any Swap Agreement for which any such amount cannot be determined on the Monthly Calculation Date, the Trustee will make such deposit based upon assumptions set forth in the Supplemental Indenture authorizing such Swap Agreement. With respect to each Credit Enhancement Facility under which fees or premiums are due no less frequently than every 60 days, the Trustee shall deposit to the credit of the Interest Account on each Monthly Calculation Date an amount equal to the fees or premiums that will become payable under such deficiencyCredit Enhancement Facility during the following calendar month. With respect to each Credit Enhancement Facility under which fees or premiums are paid less frequently than every 60 days, the Trustee shall make equal monthly deposits to the credit of the Interest Account on each Monthly Calculation Date preceding each Interest Payment Date, to aggregate the full amount of such fees or premiums. In making the deposits required to be deposited and credited to the Interest Account, the amounts credited to the Interest Account pursuant to the first two (2) sentences of this Section 4-11 and all other deposits and credits otherwise made or required to be made to the Interest Account shall, to the extent available for such purpose, be taken into consideration and allowed for. Each deposit required by this Section 4.7.1 to pay the foregoing amounts shall be made by transfer from the following Funds and Accounts, in the following order of priority: the Revenue Collection Fund, the Surplus Fund (other than that portion of the Balance thereof consisting of Eligible Loans)Fund, the Reserve Fund, the Administration Fund, the Surplus Fund (including any portion of the Balance thereof consisting of Eligible Loans), the Retirement Account, the Principal Account and, as to Class A Senior Notes and Other Senior Obligations only, the Acquisition Fund (other than that portion of the Balance thereof consisting of Student Loans); provided that such transfers shall be made from the Retirement Account or the Principal Account in respect of Subordinate Obligations only if, and to the extent, any amounts to be so transferred are in excess of the requirements of such Accounts with respect to Senior Obligations payable therefrom. If, as of any regularly scheduled Interest Payment On each Monthly Calculation Date, if any Carry-Over Amount (including any accrued interest thereon) is will be due and payable with respect to a series of NotesNotes during the next month, as provided in the related Supplemental Indenture, the Trustee shall transfer to the Interest Account (to the extent amounts are available therefor in the Collection Fund or the Surplus Account in accordance with the second paragraph of Section 4.8 hereof, Fund after taking into account all other amounts payable from the Surplus Fund prior applications of moneys in such Funds on such Monthly Calculation Date in accordance with such paragraph on such Interest Payment DateSections 4.6 and 4.8 hereof) an amount equal to such Carry-Over Amount (including any accrued interest thereon) so due and payable. The Trustee shall make payment of any Carry-Over Amount (and any interest accrued thereon) on an Interest Payment Date in the same manner as it pays interest on the related series of Notes on such Interest Payment Date. The moneys in the Interest Account required for the payment of interest on the Class A Notes or the Class B Notes of any series (including, without limitation, the payment of that portion of the purchase price of Class A Notes or Class B Notes purchased pursuant to Section 4.7.2(F) 4.7.2 or 4.7.3 hereof attributable to accrued interest thereon), any Corporation Issuer Swap Payments or fees payable to a Credit Facility Provider under a Credit Enhancement Facility or Demand Purchase Agreement or any Carry-Over Amount (including any accrued interest thereon) shall be applied by the Trustee to the payment of such interest or amounts when due without further authorization or direction. Balances Pending application of moneys in the Interest Account Account, such moneys shall be transferred to the credit of the Indemnification Fund to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund, the Administration Fund, the Retirement Account and the Principal Account, to make any deposit to the credit of the Indemnification Fund required by Section 4.5 hereof. Balances invested in the Interest Account shall be transferred to the credit of the Principal Account to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund and the Administration Fund, to make payment of the principal and purchase price of Class A Notes, Investment Securities as provided in Section 4.7.2 4.11 hereof. The moneys , and any earnings on or income from such investments shall be deposited in the Interest Account required for (A) transfer to the Indemnification Collection Fund as hereinbefore provided shall be transferred to such Fund without furtherin Section 4.6 hereof.
Appears in 1 contract
Samples: Collegiate Funding Services Inc
Interest Account. With respect to each series of Class A Notes or Class B Notes, the Trustee shall, upon delivery to the original purchasers thereof and from the proceeds thereof, credit to the Interest Account the amount, if any, specified in the Supplemental Indenture providing for the issuance of such series of Notes. The Trustee shall also deposit in the Interest Account (i) that portion of the proceeds from the sale of Financed Student Loans as is specified in Section 4.2 hereof, (ii) that portion of the proceeds from the sale of the Corporation's bonds, notes or other evidences of indebtedness, if any, to be used to pay interest on the Class A Notes or the Class B Notes, (iii) all Counterparty Swap Payments, (iv) all payments under any Credit Enhancement Facilities by Credit Facility Providers to be used to pay interest on Class A Notes or Class B Notes, and (v) all amounts required to be transferred thereto from the Funds and Accounts specified in the last sentence of the following paragraph. The moneys in the Interest Account shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be deposited in the Revenue Fund as provided in Section 4.6 hereof. To provide for the payment of each installment of interest which falls due upon Class A Notes or Class B Notes on each regularly scheduled Interest Payment Date and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date, the Trustee shall make six (6) equal monthly deposits to the credit of the Interest Account not later than the six (6) Monthly Payment Dates preceding such Interest Payment Date, to aggregate the full amount of such interest, payment and fees, except that if the first such Interest Payment Date occurs in six (6) months and fifteen (15) days or less from the date on which the Class A Notes or Class B Notes of such series are delivered to the initial purchasers thereof, then the Trustee shall make equal monthly deposits to the credit of the Interest Account not later than each Monthly Payment Date beginning with the calendar month following the calendar month in which such Notes are delivered to the initial purchasers and ending with the last such Monthly Payment Date prior to such first Interest Payment Date (provided, however, with respect to any Variable Rate Notes, deposits shall be made in an amount equal to the interest accrued on such Notes from the last previous Monthly Payment Date or regularly scheduled Interest Payment Date therefor, whichever is later, to that Monthly Payment Date or, in the case of the last Monthly Payment Date preceding a regularly scheduled Interest Payment Date, to such regularly scheduled Interest Payment Date), to aggregate the full amount of such interest, payment and fees, and except that the Corporation shall receive a credit against such payments for any accrued Counterparty Swap Payments that are to be paid on or before the next regularly scheduled Interest Payment Date if the Swap Counterparty is not then in default in its obligations under the Swap Agreement and if the Swap Counterparty or any obligor under a related Swap Counterparty Guarantee has unsecured long-term debt rated by each Rating Agency in any of its three (3) highest Rating Categories. Anything in this paragraph to the contrary notwithstanding, the Trustee shall, if so instructed in writing by an Authorized Officer of the Corporation, deposit to the credit of the Interest Account on any Monthly Payment Date for any installment of interest a larger amount than is required to be made on such Monthly Payment Date. If, on any Interest Payment Date (including any Redemption Date occurring on a date that is not a regularly scheduled Interest Payment Date) or other date on which Class A Notes or Class B Notes are to be purchased in accordance with Section 4.7.2(F) or 4.7.3 hereof, moneys in the Interest Account are insufficient to pay the accrued interest due on the Class A Notes and Class B Notes and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date or constituting a portion of the purchase price of Notes to be so purchased, the Trustee shall immediately deposit to the credit of the Interest Account an amount equal to such deficiency. In making the deposits required to be deposited and credited to the Interest Account, the amounts credited to the Interest Account pursuant to the first two (2) sentences of this Section 4-11 and other deposits and credits otherwise made or required to be made to the Interest Account shall, to the extent available for such purpose, be taken into consideration and allowed for. Each deposit required by this Section 4.7.1 to pay the foregoing amounts shall be made by transfer from the following Funds and Accounts, in the following order of priority: the Revenue Fund, the Surplus Fund (other than that portion of the Balance thereof consisting of Eligible Loans), the Reserve Fund, the Administration Fund, the Surplus Fund (including any portion of the Balance thereof consisting of Eligible Loans), the Retirement Account, the Principal Account and, as to Class A Notes and Other Senior Obligations only, the Acquisition Fund (other than that portion of the Balance thereof consisting of Student Loans); provided that such transfers shall be made from the Retirement Account or the Principal Account in respect of Subordinate Obligations only if, and to the extent, any amounts to be so transferred are in excess of the requirements of such Accounts with respect to Senior Obligations payable therefrom. If, as of any regularly scheduled Interest Payment Date, any Carry-Over Amount (including any accrued interest thereon) is due and payable with respect to a series of Notes, as provided in the related Supplemental Indenture, the Trustee shall transfer to the Interest Account (to the extent amounts are available therefor in the Surplus Account in accordance with the second paragraph of Section 4.8 hereof, after taking into account all other amounts payable from the Surplus Fund in accordance with such paragraph on such Interest Payment Date) an amount equal to such Carry-Over Amount (including any accrued interest thereon) so due and payable. The Trustee shall make payment of any Carry-Over Amount (and any interest accrued thereon) on an Interest Payment Date in the same manner as it pays interest on the related series of Notes on such Interest Payment Date. The moneys in the Interest Account required for the payment of interest on the Class A Notes or the Class B Notes of any series (including, without limitation, the payment of that portion of the purchase price of Class A Notes or Class B Notes purchased pursuant to Section 4.7.2(F) or 4.7.3 hereof attributable to accrued interest thereon), any Corporation Swap Payments or fees payable to a Credit Facility Provider under a Credit Enhancement Facility or Demand Purchase Agreement or any Carry-Over Amount (including any accrued interest thereon) shall be applied by the Trustee to the payment of such interest or amounts when due without further authorization or direction. Balances in the Interest Account shall be transferred to the credit of the Indemnification Fund to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund, the Administration Fund, the Retirement Account and the Principal Account, to make any deposit to the credit of the Indemnification Fund required by Section 4.5 hereof. Balances in the Interest Account shall be transferred to the credit of the Principal Account to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund and the Administration Fund, to make payment of the principal and purchase price of Class A Notes, as provided in Section 4.7.2 hereof. The moneys in the Interest Account required for (A) transfer to the Indemnification Fund as hereinbefore provided shall be transferred to such Fund without furtherfurther authorization or direction, and (B) transfer to the Principal Account for payment of the principal or purchase price of Class A Notes, as provided in Section 4.7.2 hereof, shall be transferred to such Account without further authorization or direction. Notwithstanding any other provisions of this Article Four, deposits to the credit of the Interest Account required to be made on each Monthly Payment Date by this Section 4.7.1 or on any other date on which the Balance in the Interest Account is not sufficient to pay all amounts payable therefrom on such date, and any other amounts at any time on deposit in the Interest Account, shall be applied in the following order of priority: first, to the extent hereinabove provided, for transfers to the Indemnification Fund; second, to the payment of interest on all Class A Notes, Corporation Swap Payments under Senior Swap Agreements and fees payable to Senior Credit Facility Providers under a Senior Credit Enhancement Facility or Senior Demand Purchase Agreement, and if such money (after the transfers hereinabove described, including all amounts, to the extent necessary, in the Principal Account) is less than such interest and Other Senior Obligations on an Interest Payment Date, such money shall be applied, pro rata, among such indebtedness based upon such amounts then owing to Senior Beneficiaries and to be paid from the Interest Account; third, by transfer to the Principal Account or the Retirement Account, to the extent required under Section 4.7.2 and 4.7.3 hereof, in respect of amounts with respect to the principal of the Class A Notes or other amounts owed to Other Senior Beneficiaries payable therefrom; fourth, to the payment of interest on all Class B Notes, Corporation Swap Payments under Subordinate Swap Agreements and fees payable to Subordinate Credit Facility Providers, and if such money (after the transfers hereinabove described, including all amounts, to the extent necessary, in the Principal Account over and above the amount on deposit therein to meet any accrued obligations to pay principal of the Class A Notes or amounts, other than fees, to Senior Credit Facility Providers) is less than such interest and Other Subordinate Obligations on an Interest Payment Date, such money shall be applied, pro rata, among such indebtedness based upon such amounts then owing to Subordinate Beneficiaries and to be paid from the Interest Account; fifth, to the payment of all Carry-Over Amounts (including any accrued interest thereon) due and payable on all series of Class A Notes, and if such money is less than such Carry-Over Amounts (including any accrued interest thereon) on an Interest Payment Date, such money shall be applied, pro rata, among such Carry-Over Amounts (including any accrued interest thereon) based upon such amounts then otherwise due and payable to Class A Noteholders and to be paid from the Interest Account; and sixth, to the payment of all Carry-Over Amounts (including any accrued interest thereon) due and payable on all series of Class B Notes, and if such money is less than such Carry-Over Amounts (including any accrued interest thereon) on an Interest Payment Date, such money shall be applied, pro rata, among such Carry-Over Amounts (including any accrued interest thereon) based upon such amounts then otherwise due and payable to Class B Noteholders and to be paid from the Interest Account.
Appears in 1 contract
Samples: Education Loans Inc /De
Interest Account. With respect to each series of Class A Notes or Class B Notes, the Trustee shall, upon delivery to the original purchasers thereof and from the proceeds thereof, credit to the Interest Account the amount, if any, specified in the Supplemental Indenture providing for the issuance of such series of Notes. The Trustee shall also deposit in the Interest Account (i) that portion of the proceeds from the sale of Financed Student Loans as is specified in Section 4.2 hereof, (ii) that portion of the proceeds from the sale of the Corporation's bonds, notes or other evidences of indebtedness, if any, to be used to pay interest on the Class A Notes or the Class B Notes, (iii) all Counterparty Swap Payments, (iv) all payments under any Credit Enhancement Facilities by Credit Facility Providers to be used to pay interest on Class A Notes or Class B Notes, and (v) all amounts required to be transferred thereto from the Funds and Accounts specified in the last sentence of the following paragraph. The moneys in the Interest Account shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be deposited in the Revenue Fund as provided in Section 4.6 hereof. To provide for the payment of each installment of interest which falls due upon Class A Notes or Class B Notes on each regularly scheduled Interest Payment Date and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date, the Trustee shall make six (6) equal monthly deposits to the credit of the Interest Account not later than the six (6) Monthly Payment Dates preceding such Interest Payment Date, to aggregate the full amount of such interest, payment and fees, except that if the first such Interest Payment Date occurs in six (6) months and fifteen (15) days or less from the date on which the Class A Notes or Class B Notes of such series are delivered to the initial purchasers thereof, then the Trustee shall make equal monthly deposits to the credit of the Interest Account not later than each Monthly Payment Date beginning with the calendar month following the calendar month in which such Notes are delivered to the initial purchasers and ending with the last such Monthly Payment Date prior to such first Interest Payment Date (provided, however, with respect to any Variable Rate Notes, deposits shall be made in an amount equal to the interest accrued on such Notes from the last previous Monthly Payment Date or regularly scheduled Interest Payment Date therefor, whichever is later, to that Monthly Payment Date or, in the case of the last Monthly Payment Date preceding a regularly scheduled Interest Payment Date, to such regularly scheduled Interest Payment Date), to aggregate the full amount of such interest, payment and fees, and except that the Corporation shall receive a credit against such payments for any accrued Counterparty Swap Payments that are to be paid on or before the next regularly scheduled Interest Payment Date if the Swap Counterparty is not then in default in its obligations under the Swap Agreement and if the Swap Counterparty or any obligor under a related Swap Counterparty Guarantee has unsecured long-term debt rated by each Rating Agency in any of its three (3) highest Rating Categories. Anything in this paragraph to the contrary notwithstanding, the Trustee shall, if so instructed in writing by an Authorized Officer of the Corporation, deposit to the credit of the Interest Account on any Monthly Payment Date for any installment of interest a larger amount than is required to be made on such Monthly Payment Date. If, on any Interest Payment Date (including any Redemption Date occurring on a date that is not a regularly scheduled Interest Payment Date) or other date on which Class A Notes or Class B Notes are to be purchased in accordance with Section 4.7.2(F) or 4.7.3 hereof, moneys in the Interest Account are insufficient to pay the accrued interest due on the Class A Notes and Class B Notes and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date or constituting a portion of the purchase price of Notes to be so purchased, the Trustee shall immediately deposit to the credit of the Interest Account an amount equal to such deficiency. In making the deposits required to be deposited and credited to the Interest Account, the amounts credited to the Interest Account pursuant to the first two (2) sentences of this Section 4-11 and other deposits and credits otherwise made or required to be made to the Interest Account shall, to the extent available for such purpose, be taken into consideration and allowed for. Each deposit required by this Section 4.7.1 to pay the foregoing amounts shall be made by transfer from the following Funds and Accounts, in the following order of priority: the Revenue Fund, the Surplus Fund (other than that portion of the Balance thereof consisting of Eligible Loans), the Reserve Fund, the Administration Fund, the Surplus Fund (including any portion of the Balance thereof consisting of Eligible Loans), the Retirement Account, the Principal Account and, as to Class A Notes and Other Senior Obligations only, the Acquisition Fund (other than that portion of the Balance thereof consisting of Student Loans); provided that such transfers shall be made from the Retirement Account or the Principal Account in respect of Subordinate Obligations only if, and to the extent, any amounts to be so transferred are in excess of the requirements of such Accounts with respect to Senior Obligations payable therefrom. If, as of any regularly scheduled Interest Payment Date, any Carry-Over Amount (including any accrued interest thereon) is due and payable with respect to a series of Notes, as provided in the related Supplemental Indenture, the Trustee shall transfer to the Interest Account (to the extent amounts are available therefor in the Surplus Account in accordance with the second paragraph of Section 4.8 hereof, after taking into account all other amounts payable from the Surplus Fund in accordance with such paragraph on such Interest Payment Date) an amount equal to such Carry-Over Amount (including any accrued interest thereon) so due and payable. The Trustee shall make payment of any Carry-Over Amount (and any interest accrued thereon) on an Interest Payment Date in the same manner as it pays interest on the related series of Notes on such Interest Payment Date. The moneys in the Interest Account required for the payment of interest on the Class A Notes or the Class B Notes of any series (including, without limitation, the payment of that portion of the purchase price of Class A Notes or Class B Notes purchased pursuant to Section 4.7.2(F) or 4.7.3 hereof attributable to accrued interest thereon), any Corporation Swap Payments or fees payable to a Credit Facility Provider under a Credit Enhancement Facility or Demand Purchase Agreement or any Carry-Over Amount (including any accrued interest thereon) shall be applied by the Trustee to the payment of such interest or amounts when due without further authorization or direction. Balances in the Interest Account shall be transferred to the credit of the Indemnification Fund to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund, the Administration Fund, the Retirement Account and the Principal Account, to make any deposit to the credit of the Indemnification Fund required by Section 4.5 hereof. Balances in the Interest Account shall be transferred to the credit of the Principal Account to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund and the Administration Fund, to make payment of the principal and purchase price of Class A Notes, as provided in Section 4.7.2 hereof. The moneys in the Interest Account required for (A) transfer to the Indemnification Fund as hereinbefore provided shall be transferred to such Fund without furtherexcept
Appears in 1 contract
Samples: Please Insert Social Security (Education Loans Inc /De)
Interest Account. With respect to each series of ---------------- Class A Notes or Class B Notes, the Trustee shall, upon delivery to the original purchasers thereof and from the proceeds thereof, credit to the Interest Account the amount, if any, specified in the Supplemental Indenture providing for the issuance of such series of Notes. The Trustee shall also deposit in the Interest Account (i) that portion of the proceeds from the sale of Financed Student Loans as is specified in Section 4.2 hereof, (ii) that portion of the proceeds from the sale of the Corporation's bonds, notes or other evidences of indebtedness, if any, to be used to pay interest on the Class A Notes or the Class B Notes, (iii) all Counterparty Swap Payments, (iv) all payments under any Credit Enhancement Facilities by Credit Facility Providers to be used to pay interest on Class A Notes or Class B Notes, and (v) all amounts required to be transferred thereto from the Funds and Accounts specified in the last sentence of the following paragraph. The moneys in the Interest Account shall be invested in Investment Securities as provided in Section 4.11 hereof, and any earnings on or income from such investments shall be deposited in the Revenue Fund as provided in Section 4.6 hereof. To provide for the payment of each installment of interest which falls due upon Class A Notes or Class B Notes on each regularly scheduled Interest Payment Date and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date, the Trustee shall make six (6) equal monthly deposits to the credit of the Interest Account not later than the six (6) Monthly Payment Dates preceding such Interest Payment Date, to aggregate the full amount of such interest, payment and fees, except that if the first such Interest Payment Date occurs in six (6) months and fifteen (15) days or less from the date on which the Class A Notes or Class B Notes of such series are delivered to the initial purchasers thereof, then the Trustee shall make equal monthly deposits to the credit of the Interest Account not later than each Monthly Payment Date beginning with the calendar month following the calendar month in which such Notes are delivered to the initial purchasers and ending with the last such Monthly Payment Date prior to such first Interest Payment Date (provided, however, with respect to any Variable Rate Notes, deposits shall be made in an amount equal to the interest accrued on such Notes from the last previous Monthly Payment Date or regularly scheduled Interest Payment Date therefor, whichever is later, to that Monthly Payment Date or, in the case of the last Monthly Payment Date preceding a regularly scheduled Interest Payment Date, to such regularly scheduled Interest Payment Date), to aggregate the full amount of such interest, payment and fees, and except that the Corporation shall receive a credit against such payments for any accrued Counterparty Swap Payments that are to be paid on or before the next regularly scheduled Interest Payment Date if the Swap Counterparty is not then in default in its obligations under the Swap Agreement and if the Swap Counterparty or any obligor under a related Swap Counterparty Guarantee has unsecured long-term debt rated by each Rating Agency in any of its three (3) highest Rating Categories. Anything in this paragraph to the contrary notwithstanding, the Trustee shall, if so instructed in writing by an Authorized Officer of the Corporation, deposit to the credit of the Interest Account on any Monthly Payment Date for any installment of interest a larger amount than is required to be made on such Monthly Payment Date. If, on any Interest Payment Date (including any Redemption Date occurring on a date that is not a regularly scheduled Interest Payment Date) or other date on which Class A Notes or Class B Notes are to be purchased in accordance with Section 4.7.2(F) or 4.7.3 hereof, moneys in the Interest Account are insufficient to pay the accrued interest due on the Class A Notes and Class B Notes and all Corporation Swap Payments and fees to a Credit Facility Provider payable on such Interest Payment Date or constituting a portion of the purchase price of Notes to be so purchased, the Trustee shall immediately deposit to the credit of the Interest Account an amount equal to such deficiency. In making the deposits required to be deposited and credited to the Interest Account, the amounts credited to the Interest Account pursuant to the first two (2) sentences of this Section 4-11 and other deposits and credits otherwise made or required to be made to the Interest Account shall, to the extent available for such purpose, be taken into consideration and allowed for. Each deposit required by this Section 4.7.1 to pay the foregoing amounts shall be made by transfer from the following Funds and Accounts, in the following order of priority: the Revenue Fund, the Surplus Fund (other than that portion of the Balance thereof consisting of Eligible Loans), the Reserve Fund, the Administration Fund, the Surplus Fund (including any portion of the Balance thereof consisting of Eligible Loans), the Retirement Account, the Principal Account and, as to Class A Notes and Other Senior Obligations only, the Acquisition Fund (other than that portion of the Balance thereof consisting of Student Loans); provided that such transfers shall be made from the Retirement Account or the Principal Account in respect of Subordinate Obligations only if, and to the extent, any amounts to be so transferred are in excess of the requirements of such Accounts with respect to Senior Obligations payable therefrom. If, as of any regularly scheduled Interest Payment Date, any Carry-Carry- Over Amount (including any accrued interest thereon) is due and payable with respect to a series of Notes, as provided in the related Supplemental Indenture, the Trustee shall transfer to the Interest Account (to the extent amounts are available therefor in the Surplus Account in accordance with the second paragraph of Section 4.8 hereof, after taking into account all other amounts payable from the Surplus Fund in accordance with such paragraph on such Interest Payment Date) an amount equal to such Carry-Over Amount (including any accrued interest thereon) so due and payable. The Trustee shall make payment of any Carry-Over Amount (and any interest accrued thereon) on an Interest Payment Date in the same manner as it pays interest on the related series of Notes on such Interest Payment Date. The moneys in the Interest Account required for the payment of interest on the Class A Notes or the Class B Notes of any series (including, without limitation, the payment of that portion of the purchase price of Class A Notes or Class B Notes purchased pursuant to Section 4.7.2(F) or 4.7.3 hereof attributable to accrued interest thereon), any Corporation Swap Payments or fees payable to a Credit Facility Provider under a Credit Enhancement Facility or Demand Purchase Agreement or any Carry-Over Amount (including any accrued interest thereon) shall be applied by the Trustee to the payment of such interest or amounts when due without further authorization or direction. Balances in the Interest Account shall be transferred to the credit of the Indemnification Rebate Fund to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund, the Administration Fund, the Retirement Account and the Principal Account, to make any deposit to the credit of the Indemnification Rebate Fund required by Section 4.5 hereof. Balances in the Interest Account shall be transferred to the credit of the Principal Account to the extent necessary, after transfers thereto from the Revenue Fund, the Surplus Fund, the Reserve Fund and the Administration Fund, to make payment of the principal and purchase price of Class A Notes, as provided in Section 4.7.2 hereof. The moneys in the Interest Account required for (A) transfer to the Indemnification Rebate Fund as hereinbefore provided shall be transferred to such Fund without furtherfurther authorization or direction, and (B) transfer to the Principal Account for payment of the principal or purchase price of Class A Notes, as provided in Section
Appears in 1 contract
Samples: Education Loans Inc /De
