Policy Claim Amount means, with respect to any Payment Date, (i) the Scheduled Payment, for such Payment Date minus (ii) any reduction in the amounts described in clause (i) above on such Payment Date after giving effect to the application of Available Funds and all funds drawn from the Spread Account, including without limitation any amounts drawn under the Demand Note for deposit in the Spread Account.
Each Deficiency Notice shall direct the Insurer to remit such Policy Claim Amount to the Indenture Trustee for deposit in the Payment Account.
In accordance with the provisions of the Note Policy, the Insurer is required to pay to the Trustee the Note Policy Claim Amount properly claimed thereunder by 12:00 p.m., New York City time, on the later of (i) the fourth Business Day following receipt of the Notice of Claim, and (ii) the applicable Distribution Date.
On each Distribution Date, based solely on the Distribution Date Statement, the Indenture Trustee will apply the Net Collections available with respect to the related Collection Period, together with amounts, if any, withdrawn from the Spread Account, the Prefunding Account and the Capitalized Interest Account or representing payment of the Policy Claim Amount, to make the deposits to the Note Distribution Account required pursuant to Section 4.03(a) of the Sale and Servicing Agreement.
The notice of such claim shall direct the Insurer to remit such Certificate Policy Claim Amount or Note Policy Claim Amount, as the case may be, to the Owner Trustee or the Indenture Trustee for deposit in the Certificate Distribution Account or the Note Distribution Account, as the case may be.
Upon receipt of the Policy Claim Amount, the Indenture Trustee shall distribute such Policy Claim Amount as part of the Note Distributable Amount under this Indenture to the extent such Policy Claim Amount relates to the Notes and as part of the Certificate Distributable Amount under the Sale and Servicing Agreement to the extent such Policy Claim Amount relates to the Certificates.