Principal Sharing Groups Sample Clauses
The Principal Sharing Groups clause defines how groups of parties, typically lenders, share rights and obligations related to a principal amount in a financial arrangement. In practice, this clause outlines the mechanism for allocating payments, losses, or voting rights among the members of the group, often in proportion to their respective shares or commitments. Its core function is to ensure transparency and fairness in the distribution of financial interests and responsibilities among multiple stakeholders, thereby preventing disputes and promoting efficient administration of the shared principal.
Principal Sharing Groups. With respect to each Distribution Date, (i) the Servicer will allocate Shared Principal Collections to each Principal Sharing Series in a particular Principal Sharing Group, pro rata, in proportion to the Principal Shortfalls, if any, with respect to each such Series and (ii) the Servicer will deduct from the allocated Principal Collections available for deposit into the Collection Account on or before such Distribution Date an amount equal to the excess, if any, of (A) the aggregate Shared Principal Collections as defined in the related Indenture Supplements for all such Series for such Distribution Date, over (B) the aggregate Principal Shortfalls as defined in the related Indenture Supplements for all such Series for such Distribution Date and will distribute such excess to the Owner Trustee for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement; provided, however, that if the Net Adjusted Pool Balance as of such Distribution Date is less than the Required Pool Balance, the Servicer will not distribute such excess funds to the Owner Trustee for distribution to the holders of the Transferor Interest in accordance with the Trust Agreement, but will deposit such excess funds into the Excess Funding Account to the extent necessary to cause the Net Adjusted Pool Balance to equal the Required Pool Balance as of such Distribution Date pursuant to Section 8.03(b).
Principal Sharing Groups. The Servicer will allocate Shared Principal Collections for each Payment Date to each Principal Sharing Series in a particular Principal Sharing Group, pro rata, in proportion to the Principal Shortfall, if any, for each such Series. On each Payment Date, from an amount for each Principal Sharing Group equal to the excess, if any, of (i) the Shared Principal Collections for such Payment Date, over (ii) the aggregate Principal Shortfall for all Series in such Principal Sharing Group for such Payment Date, the Servicer will (A) deposit such excess into the Excess Funding Account to the extent necessary, without duplication, to cause the Net Adjusted Pool Balance to equal the Required Pool Balance as of such Payment Date pursuant to Section 8.3(b)(ii), and (B) distribute any remainder to the Trust Paying Agent for distribution to the holders of the Depositor Interest in accordance with the Trust Agreement.
Principal Sharing Groups. On each Distribution Date, (i) the Servicer will allocate Shared Principal Collections to each Principal Sharing Series in a particular Principal Sharing Group, pro rata, in proportion to the Principal Shortfalls, if any, with respect to each such Series and (ii) the Servicer will withdraw from the Collection Account and pay to the Owner Trustee for distribution to the holders of the Transferor Interest (in accordance with the Trust Agreement) an amount equal to the excess, if any, of (1) the aggregate Shared Principal Collections as defined in the related Indenture Supplements for all such Series for such Distribution Date over (2) the aggregate Principal Shortfalls as defined in the related Indenture Supplements for all such Series for such Distribution Date; provided, however, that if the Net Adjusted Pool Balance as of such Distribution Date is less than the Required Pool Balance, the Servicer will not distribute to the Owner Trustee any such amount, but will deposit such funds into the Excess Funding Account.