The Reserve Account Clause Samples
The Reserve Account clause establishes a dedicated account where funds are set aside to cover specific obligations or potential liabilities under an agreement. Typically, this account is funded by one party and may be used to ensure payment of future expenses, indemnities, or to secure performance of contractual duties. By requiring the maintenance of a reserve, the clause provides assurance to the other party that sufficient resources are available to meet certain financial commitments, thereby reducing the risk of non-payment or default.
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The Reserve Account. (a) On the Issuance Date, the Issuer has made an initial deposit of $________ into the Reserve Account. On each Payment Date, the Trustee shall transfer to the Reserve Account from the Collection Account such amounts as shall be required by Section 3.05(b).
(b) If by 12:00 noon, New York City time, one Business Day preceding any Payment Date, the amount of collected funds on deposit in the Collection Account available for distribution under Section 3.03(b) is insufficient to permit on such Payment Date all distributions required by Section 3.03(b)(i) through 3.03(b)(xii) (such payments, the "Required Payments" and such shortfall, an "Available Funds Shortfall"), then, to the extent of the Available Reserve Amount on deposit in the Reserve Account, the Trustee shall transfer, not later than the end of such Business Day, from the Reserve Account to the Collection Account such amount to the extent available as shall be necessary to make on such Payment Date all Required Payments.
(c) In the event that after giving effect to all the disbursements required to be made on any Payment Date, the Available Reserve Amount exceeds the Required Reserve Amount, the Trustee shall transfer, not later than the end of business on such Payment Date, an amount equal to such excess to the Issuer.
(d) Upon termination of this Indenture, any balance remaining in the Reserve Account, after all obligations to the Noteholders hereunder have been fully satisfied, shall be paid to reimburse the Trustee for any amounts owing to it arising from the performance of its obligations under this Indenture and, then, to the Issuer.
The Reserve Account. (a) The Indenture Trustee shall establish and maintain in the name of the Securities Intermediary an account (the “Reserve Account”) entitled “Reserve Account, U.S. Bank National Association, as Indenture Trustee, in trust for the benefit of the Holders of the GreenPoint Mortgage Funding Trust 2006-HE1 Home Equity Loan Asset-Backed Notes, Series 2006-HE1.” The Reserve Account shall be an Eligible Account.
(b) If the existing Reserve Account ceases to be an Eligible Account, the Indenture Trustee shall establish a new Reserve Account that is an Eligible Account within 10 Business Days and transfer all funds and investment property on deposit in such existing Reserve Account into such new Reserve Account. The Reserve Account shall relate solely to the Securities and funds therein shall be held separate and apart from and shall not be commingled with any other monies including, without limitation, other monies of the Indenture Trustee held under this Agreement. The Indenture Trustee shall make withdrawals from the Reserve Account only for the following purposes:
The Reserve Account. (i) If, on any Settlement Date prior to the Termination Date, Collections on deposit in the Collection Account on such day are less than the aggregate amount required to be distributed pursuant to clauses (i), (ii), (iii), and (iv) of Section 2.06, the Program Agent shall direct the Paying Agent to withdraw the amount of such deficiency (but not in excess of the amount required to be distributed pursuant to such clauses (i), (ii), (iii) and (iv)), up to the amount available in the Reserve Account, from the Reserve Account and shall apply such amount directly (and solely) to any unpaid amounts described in clauses (i), (ii), (iii) and (iv) in the order of priority and in the manner set forth in such clauses.
(ii) On the first Settlement Date after the Termination Date, any funds in the Reserve Account shall be deposited in the Collection Account to be applied as part of the Collections on such Settlement Date. After making the withdrawal required by this Section 2.06(d)(ii), the Reserve Account shall be closed.
The Reserve Account. (a) The Indenture Trustee shall establish and maintain in the name of the Securities Intermediary a separate, non-interest bearing trust account (the "Reserve Account") entitled "Reserve Account, [_______________], as Indenture Trustee, in trust for the benefit of the Holders of [_______________], Asset-Backed Notes, Series [____]." The Reserve Account shall be an Eligible Account.
(b) If the existing Reserve Account ceases to be an Eligible Account, the Indenture Trustee shall establish a new Reserve Account that is an Eligible Account within 10 Business Days and transfer all funds and investment property on deposit in such existing Reserve Account into such new Reserve Account. The Reserve Account shall relate solely to the Securities and funds therein shall be held separate and apart from and shall not be commingled with any other monies including, without limitation, other monies of the Indenture Trustee held under this Agreement. The Indenture Trustee shall make withdrawals from the Reserve Account only for the following purposes:
(i) to pay such amounts in respect of Additional Balance Advance Amounts pursuant to Section 2.01(b) of this Agreement;
(ii) to pay such amounts required to paid pursuant to Section 3.11 of the Trust Agreement; and
(iii) to withdraw amounts deposited in the Reserve Account in error.
(c) The Indenture Trustee may (but is not obligated to) invest, or cause to be invested, funds held in the Reserve Account in Eligible Investments (which may be obligations of the Indenture Trustee). All such investments must be payable on demand or mature no later than one Business Day prior to the next Payment Date, and shall not be sold or disposed of prior to their maturity. All such Eligible Investments will be made in the name of the Indenture Trustee (in its capacity as such) or its nominee. The amount of any losses incurred in respect of any such investments shall be paid by the Indenture Trustee for deposit in the Reserve Account out of its own funds, without any right of reimbursement therefor, immediately as realized. All income and gain realized from any such investment shall be compensation to the Indenture Trustee and shall be subject to its withdrawal on order from time to time.
The Reserve Account. All present and future security for the payment to Seller of any of the Collateral and goods, which gave or will give rise to any such Collateral or are evidenced, identified, or represented therein or thereby.
The Reserve Account. 1. The Amount Distributed to the Reserve Account
The Reserve Account. (a) The Buyer will establish a reserve account (the “Reserve Account”). The Reserve Account will be owned, maintained, managed, and controlled by the Buyer and the Provider shall have no legal or equitable interest therein. The funds in the Reserve Account may be commingled with other funds of Buyer so long as Buyer separately accounts for transactions in the Reserve Account pursuant to this Section 3.2.
(b) The Reserve Account shall be accounted for on a Batch-by-Batch basis and will be credited with all cash received by Buyer with respect to the Provider’s Accounts in accordance with the terms and conditions of this Section 3.2, including any amounts paid by the Provider as a result of the Provider’s repurchase obligations, as set forth in Section 3.3(b)(iii), below.
(c) The Buyer may debit or withdraw at any time and from time to time from the Reserve Account all amounts due to Buyer with respect to any Obligations and repurchase obligations then owed by the Provider to the Buyer under this Agreement and may allocate such amounts among the various Batches as deemed advisable or appropriate in the sole discretion of the Buyer.
(d) The Buyer may debit or withdraw at any time and from time to time from the Reserve Account pursuant to this Section 3.2(d) all amounts paid by third party Payors and others with respect to the Accounts Purchased from the Provider by Buyer; provided, however, Buyer shall not debit or withdraw from the Reserve Account pursuant this Section 3.2(d) an aggregate amount with respect to any Batch in excess of the aggregate ENR of the Accounts in such Batch as of the Purchase Date.
(e) Buyer may account to the Provider from time to time with a statement of the Outstanding Initial Installments, the Outstanding ENR Balance, the Reserve Account, and charges and payments made pursuant to this Agreement, and in the absence of manifest error, any such accounting rendered by Buyer shall be deemed final, binding and conclusive unless Buyer is notified by the Provider in writing to the contrary within 30 calendar days of receipt of each accounting, which notice shall be deemed an objection only to items specifically objected to therein.
(f) If no Event of Default has occurred, and after all amounts have been debited or withdrawn from the Reserve Account pursuant to Section 3.2(c) and (d) above, the Buyer will pay to the Provider as a Subsequent Installment of the Purchase Price of previously Purchased Accounts, an amount equal to all funds then...
The Reserve Account and the Collateral Account; ----------------------------------------------- Investments. -----------
(a) If, on any Distribution Date, the Amount Available is less than the aggregate amount required to be distributed pursuant to clauses (i), (ii), (iii), and (v) of Section 3(a), the Collateral Agent shall withdraw (or, if the Reserve Account shall not at such time be maintained by the Collateral Agent, the Collateral Agent shall direct the holder of the Reserve Account to withdraw) the amount of such deficiency, up to the amount available in the Reserve Account, from the Reserve Account and apply such amount in the order of priority and in the manner set forth in such clauses of Section 3(a).
(b) If, on any Distribution Date, the Amount Available plus the ---- amount to be withdrawn from the Reserve Account pursuant to Section 4(a) on such Distribution Date is less than the aggregate amount required to be distributed pursuant to clauses (i), (ii), (iii), (iv), and (v) of Section 3(a), the Collateral Agent shall withdraw (or, if the Collateral Account shall not at such time be maintained by the Collateral Agent, the Collateral Agent shall direct the holder of the Collateral Account to withdraw) the amount of such deficiency, up to the amount available in the Collateral Account, from the Collateral Account and apply such amount in the order of priority and in the manner set forth in such clauses of Section 3(a).
(c) If, on any Interim Distribution Date, the amount withdrawn from the Collection Account is less than the aggregate amount required to be distributed pursuant to clauses (i) and (ii) of Section 3(c), the Collateral Agent shall withdraw (or, if the Reserve Account shall not at such time be maintained by the Collateral Agent, the Collateral Agent shall direct the holder of the Reserve Account to withdraw) the amount of such deficiency, up to the amount available in the Reserve Account, from the Reserve Account and apply such amount in the order of priority and in the manner set forth in such clauses of Section 3(c).
(d) If, on any Interim Distribution Date, the amount withdrawn from the Collection Account plus the amount to be withdrawn from the Reserve Account ---- pursuant to Section 4(c) on such Interim Distribution Date is less than the aggregate amount required to be distributed pursuant to clauses (i) and (ii) of Section 3(c), the Collateral Agent shall withdraw (or, if the Collateral Account shall not at such time be maintained by the Collater...
The Reserve Account. (a) The Issuer shall establish and maintain a reserve account (the "Reserve Account"), into which the Issuer shall ensure that from the First Issue Date, an amount equal to 1/3 of the next Interest Payment shall be paid on a monthly basis. The Reserve Account shall be pledged and blocked in favour of the Agent, save for interest payments to be paid in accordance with the terms of the Bonds.
(b) Five (5) Business Days prior to each Interest Payment Date, the Issuer shall request the Agent to release an amount equal to the amount payable on that Interest Payment Date by instructing the bank to transfer such amount from the Reserve Account to the Issuer's account affiliated with the CSD. The Agent shall give the bank such instructions no later than two (2) Business Days prior to the relevant Interest Payment Date.
The Reserve Account. The Trustee, for the benefit of the Secured Parties, shall establish and maintain in the city in which the Corporate Trust Office is located, with a Qualified Institution, in the name of the Issuer on behalf of the Trustee for the benefit of the Secured Parties, a non-interest bearing segregated trust account (the “Reserve Account”) bearing a designation clearly indicating that the funds deposited therein are held in trust for the benefit of the Secured Parties. The Trustee shall be the entitlement holder of the Reserve Account, and shall possess all right, title and interest in all moneys, instruments, securities and other property on deposit from time to time in the Reserve Account and the proceeds thereof for the benefit of the Secured Parties. Initially, the Reserve Account will be established with the Securities Intermediary. Funds on deposit in the Reserve Account that are not both deposited and to be withdrawn on the same day shall be invested in Permitted Investments, in accordance with a direction from the Issuer pursuant to Section 5.3(e). That portion of the proceeds of the Notes, if any, set forth in the applicable Series Supplement shall be deposited into the Reserve Account. In addition, on any Monthly Payment Date, the Trustee shall transfer Available Funds to the Reserve Account as and to the extent provided in Article 5 hereof. Moneys in the Reserve Account that constitute Available Funds shall be applied on any Monthly Payment Date as provided in Article 5 hereof or as otherwise provided in the applicable Series Supplement.