Cap Accounts definition
Examples of Cap Accounts in a sentence
The Trust Fund (exclusive of any entitlement to Assigned Prepayment Premiums, Interest Rate Cap Agreements, Swap Agreements, the assets held in the Interest Rate Cap Accounts, rights to payments from the Supplemental Interest Accounts, Prefunding Accounts, Capitalized Interest Accounts and certain other assets, in each case if applicable and as set forth in the Series Supplement) for federal income tax purposes shall consist of one or more REMICs as more particularly set forth in the Series Supplement.
In the absence of such written direction, all funds in the Interest Rate Cap Accounts shall remain uninvested.
The Trust Administrator shall treat amounts paid by the Interest Rate Cap Accounts as payments made from outside the REMIC’s for all federal tax purposes.
The Interest Rate Cap Accounts shall be Eligible Accounts, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.
The Trust Administrator shall account for the Interest Rate Cap Accounts as an outside reserve fund within the meaning of Treasury regulation 1.860G-2(h) and not an asset of any REMIC created pursuant to this Agreement.
Ownership of the Interest Rate Cap Accounts is evidenced by the Class 1-X Certificates.
The Interest Rate Cap Accounts shall be an asset of the Supplemental Interest Trust, but will not be an asset of any REMIC.
The Cap Accounts shall be Eligible Accounts, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including, without limitation, other moneys of the Trust held pursuant to this Agreement.
The Class 1-X Certificateholders will be the owner of each of the Interest Rate Cap Accounts for federal tax purposes and the Depositor shall direct the Trust Administrator in writing as to the investment of amounts therein.
As provided herein, the Trust Administrator shall elect that the Trust Fund (exclusive of the Supplemental Interest Trust, the Interest Rate Cap Accounts, the Interest Rate Cap Agreements and the Basis Risk Reserve Fund) be treated for federal income tax purposes as comprising two real estate mortgage investment conduits (each a “REMIC” or, in the alternative, “Subsidiary REMIC 1” and “Master REMIC”).