Derivative Reserve Account definition

Derivative Reserve Account is defined in Section 2.11.

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Derivative Reserve Account is hereby added to Section 2 of the Indenture Supplement as follows:

Examples of Derivative Reserve Account in a sentence

If, at any time, the institution holding the Derivative Reserve Account ceases to be a Qualified Institution, the Issuer will within ten (10) Business Days (or such longer period, not to exceed thirty (30) calendar days, as to which each Note Rating Agency may consent) establish a new Derivative Reserve Account that is a Qualified Account and shall transfer any cash and/or investments to such new Derivative Reserve Account.
From the date such new Derivative Reserve Account is established, it will be the "Derivative Reserve Account." The Derivative Reserve Account will receive deposits as described in this Section.
The Indenture Trustee hereby accepts the Derivative Reserve Account and any amounts on deposit therein in trust under the Indenture, the Indenture Supplement and this Terms Document, in accordance with the provisions thereof and hereof.
It shall be a condition precedent to the effectiveness of this Agreement that the Trust shall credit the Required Derivative Reserve Amount to the Derivative Reserve Account on the Issuance Date.
It shall be a condition precedent to the effectiveness of this Agreement that the Issuer shall deposit the Required Derivative Reserve Amount in the Derivative Reserve Account on the Issuance Date.
If either of the Derivative Agreement Account or Derivative Reserve Account loses its status as an Eligible Account, the funds in such account shall be moved to an account that qualifies as an Eligible Account within fourteen (14) days.
If, on any Funding Date, (x) the amounts on deposit in the Derivative Reserve Account exceed the Derivative Imbalance Required Reserve and (y) there are no outstanding unpaid Cap Payment Amounts (after giving effect to the use of any other amounts on deposit in the Derivative Reserve Account to pay such amounts as contemplated hereby), then, the Indenture Trustee shall remit such excess to the Depositor as holder of the Owner Trust Certificate on the such Funding Date.
It shall be a condition precedent to the effectiveness of this Agreement that the Trust shall deposit the Required Derivative Reserve Amount in the Derivative Reserve Account on the Issuance Date.
Funds credited to the Derivative Reserve Account shall be invested by the Indenture Trustee in Permitted Investments; provided, however, that, for purposes of the investment of funds credited to the Derivative Reserve Account, references in the definition of "Permitted Investments" to a rating of A-1+ by Standard & Poor's shall be modified to require a rating of not lower than A-1 by such Note Rating Agency.
The Indenture Trustee hereby accepts the Derivative Reserve Account and any property credited thereto in trust under the Indenture, the Indenture Supplement and this Terms Document, in accordance with the provisions thereof and hereof.

More Definitions of Derivative Reserve Account

Derivative Reserve Account means, the segregated non-interest bearing trust account or accounts, each of which shall be an Eligible Account, established and maintained for the benefit of the Cap Payment Holders pursuant to Section 17 and entitled “Wells Fargo Bank, N.A., as Indenture Trustee for the Green Tree Agency Advance Funding Trust I Advance Receivables Backed Notes, Derivative Reserve Account – Series 2014-VF2.” The Derivative Reserve Account shall constitute a “Cap Agreement Account” as such term is used in the Base Indenture. The Derivative Reserve Account with respect to the Series 2014-VF2 Notes is listed on Schedule I attached hereto.