Treasury Reserve Amount definition
Treasury Reserve Amount. With respect to any Eligible Treasury Security included in the Collateral, an amount that, when combined with Interest Collections that are scheduled to be paid to the holder of such Eligible Treasury Security, would be sufficient to pay any fees and/or cost of funding of Advances Outstanding attributable to such Eligible Treasury Security from the date of determination until the date such Advances Outstanding will be repaid, all as reasonably determined from time to time by the Servicer in good faith and evidenced in writing with any Borrowing Notice delivered with respect to any Advance on Eligible Treasury Securities and in connection with any applicable Payment Date, as applicable. Notwithstanding the foregoing, the cost of funding, as reasonably determined by the Servicer in good faith, shall in no event be less than the London interbank offered rate for deposits in Dollars (assuming a three-month maturity) as quoted daily in the Wall Street Journal.
Examples of Treasury Reserve Amount in a sentence
Prior to each Funding Date with respect to an Eligible Treasury Security, the Seller shall deposit (in immediately available funds) into the Treasury Securities Account, an amount equal to the Treasury Reserve Amount for such Eligible Treasury Security.
Such Treasury Reserve Amount shall be held in the Treasury Securities Account and disbursed by the Collateral Custodian, and as directed by the Servicer, all in accordance with Section 2.11(g) hereof.