SPREAD ACCOUNTS Clause Samples
The "Spread Accounts" clause establishes the creation and management of accounts used to hold funds that serve as a financial buffer or reserve in structured finance transactions. These accounts typically accumulate excess cash flows or spreads generated by the underlying assets, which can then be used to cover shortfalls, pay expenses, or provide additional security to investors. By specifying how these accounts are funded, maintained, and accessed, the clause ensures that there is a mechanism in place to mitigate payment risks and enhance the credit quality of the transaction.
SPREAD ACCOUNTS. Section 3.01. Establishment of Spread Accounts; Initial Deposits into Spread Accounts . . . . . . . . . . . . . . . . . . . . . . . . 19 Section 3.02. Investments . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 3.03. Distributions: Priority of Payments . . . . . . . . . . . . . . 21 Section 3.04. General Provisions Regarding Spread Accounts . . . . . . .
SPREAD ACCOUNTS. Section 3.01. Establishment of Spread Accounts; Initial Deposits into Spread Accounts..........................26 Section 3.02. Investments...............................................27 Section 3.03. Distributions; Priority of Payments.......................28 Section 3.04. General Provisions Regarding Spread Accounts..............31 Section 3.05. Reports by the Collateral Agent...........................32
SPREAD ACCOUNTS. Section 3.1 Establishment of Series 1999-1 Spread Account; Initial Spread Account Deposit into Spread Account.
(a) On or prior to the Series 1999-1 Closing Date, the Collateral Agent established with respect to Series 1999-1, at its office or at another depository institution or trust company an Eligible Account, designated, "Spread Account - National Auto Finance 1999-1 Trust - Harr▇▇ ▇▇▇st and Savings Bank, as Collateral Agent for Financial Security Assurance Inc. and another Secured Party" (the "Series 1999-1 Spread Account"). On the Closing Date with respect to Series 1999-1, the Collateral Agent deposited the Initial Spread Account Deposit received from the Transferor into the Series 1999-1 Spread Account.
SPREAD ACCOUNTS. (a) No later than the Closing Date, the Trustee will establish and maintain (i) for the benefit of the Holders of the Class X Certificates and the Insurer an Eligible Account titled "Class AF Spread Account, JPMorgan Chase Bank, as trustee for the registered holders of Equity One ABS, Inc. Mortgage Pass-Through Certificates, Series 2001-3, Class X," and (ii) for the benefit of the Holders of the Class X Certificates and the Insurer an Eligible Account titled "Class AV-1 Spread Account, JPMorgan Chase Bank, as trustee for the registered holders of Equity One ABS, Inc. Mortgage Pass-Through Certificates, Series 2001-3, Class X." Each Spread Account shall be treated as an "outside reserve fund" under applicable Treasury regulations and will not be part of any REMIC. The Trustee shall, promptly upon receipt, deposit into the applicable Spread Account and retain therein amounts transferred by the Trustee pursuant to Sections 4.02(a)(viii) and (b)(viii). The Spread Account Earnings shall be for the benefit of the Depositor and shall be payable to the Depositor on each Distribution Date.
(b) Amounts on deposit in the Spread Accounts shall be withdrawn on each Distribution Date by the Trustee in the following order of priority:
(i) the amount of any excess of (1) the Remittance Amount for the Class AF Certificates and Class A-IO-I Component for such Distribution Date over (2) the Net Available Funds for the Class AF Certificates and Class A-IO-I Component for such Distribution Date, shall be withdrawn from the Class AF Spread Account and, to the extent that the funds on deposit therein are insufficient, from the Class AV-1 Spread Account (any such amount, the "Class AF Spread Account Draw"), and deposited into the Distribution Account; and
(ii) the amount of any excess of (1) the Remittance Amount for the Class AV-1 Certificates and Class A-IO-II Component for such Distribution Date over (2) the Net Available Funds for the Class AV-1 Certificates and Class A-IO-II Component for such Distribution Date, shall be withdrawn from the Class AV-1 Spread Account and, to the extent that the funds on deposit therein are insufficient, from the Class AF Spread Account (any such amount, the "Class AV-1 Spread Account Draw"), and deposited into the Distribution Account; and
(iii) thereafter, in accordance with Section 4.02(d). The amounts withdrawn from the Spread Accounts pursuant to this paragraph (b) shall be net of any Spread Account Earnings not previously distributed to t...
SPREAD ACCOUNTS. Section Establishment of Spread Accounts; Initial
SPREAD ACCOUNTS