Accretion Directed Certificate Sample Clauses

An Accretion Directed Certificate clause establishes the terms under which additional securities or interests are issued and directed to a specific certificate holder as a result of accretion events, such as the reinvestment of earnings or the occurrence of certain triggers. In practice, this clause outlines the process for identifying eligible accretion events, calculating the amount of new interests to be issued, and ensuring that these are properly allocated to the designated certificate. This mechanism ensures that the economic benefits of accretion are transparently and efficiently directed to the appropriate party, thereby preventing disputes and maintaining accurate records of ownership.