Examples of Extra Principal Distribution Amount in a sentence
Any Excess Spread to the extent necessary to meet a level of overcollateralization equal to the Overcollateralization Target Amount will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed as described below under “— Principal Distributions”.
See id.§ 1.01 (Definition of Extra Principal Distribution Amount); see also id.
The principal waterfall dictates the rules for distributing (i) principal collections on the mortgage loans, and (ii) any Extra Principal Distribution Amount derived from Excess Spread (to the extent needed to increase overcollateralization).
Extra Principal Distribution Amount, in turn, is treated as principal, and thus it appears that interest amounts stemming from Post-Zero Balance Collections come under the principal waterfall.
See PSA, § 1.01 (Definition of Extra Principal Distribution Amount).