Reserve Account Draw Amount Clause Samples
The Reserve Account Draw Amount clause defines the conditions and limits under which funds can be withdrawn from a reserve account, typically established as a financial safeguard in a contractual relationship. This clause specifies the maximum amount that may be drawn, the circumstances that trigger a draw (such as payment shortfalls or specific events of default), and the process for requesting and approving such withdrawals. Its core practical function is to ensure that sufficient funds are available to cover certain obligations or losses, thereby reducing financial risk and providing assurance to the parties involved.
Reserve Account Draw Amount. On or before two Business Days before a Payment Date, the Servicer will calculate the Reserve Account Draw Amount for the Payment Date and will direct the Indenture Trustee to withdraw from the Reserve Account and deposit the Reserve Account Draw Amount into the Collection Account on or before the Payment Date.
Reserve Account Draw Amount. On or before each Payment Date, the Indenture Trustee will withdraw the amounts required to be withdrawn from the Reserve Account and deposit them into the Collection Account under Section 4.4 of the Sale and Servicing Agreement.
Reserve Account Draw Amount. On or before each Payment Date, the Indenture Trustee will (as directed by the Servicer under Section 4.6 of the Servicing Supplement) withdraw the Reserve Account Draw Amount for the Payment Date from the Reserve Account and deposit it in the Exchange Note Collection Account.