Common use of Cap Agreements Clause in Contracts

Cap Agreements. (a) The Securities Administrator shall establish and maintain an Eligible Account in its name, in trust for the benefit of the Noteholders, the Cap Account. (b) The Securities Administrator shall deposit any Cap Receipts received on any Cap Agreement Payment Date into the Cap Account. Amounts on deposit in the Cap Account shall remain uninvested. (c) On each Payment Date, the Securities Administrator shall distribute the amounts received by the Trust under each Cap Agreement to holders of the Notes in the following order of priority: (i) concurrently, pro rata, in proportion to the amount of Basis Risk Shortfall applicable to each such Class, to the Senior Notes, any applicable Basis Risk Shortfall for each such Class and such Payment Date (ii) to the Class M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (iii) to the Class M-2 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (iv) to the Class M-3 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (v) to the Class M-4 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (vi) to the Class M-5 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (vii) to the Class B Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; and (viii) to the Certificate Distribution Account, for payment to the Residual Holder (or as otherwise provided in the Trust Agreement), any amount remaining on such Payment Date after application pursuant to clauses (i) through (vii) above. If such amounts are insufficient to cover the total amount of any Basis Risk Shortfall, the only other source of coverage will be the Monthly Excess Cashflow, if any, that would otherwise be payable to the Ownership Certificate. (d) On the date on which the Cap Agreements have terminated and any amounts therefrom have been paid in accordance with Section 6.05(c) above, any amounts remaining in the Cap Account shall be paid by the Securities Administrator to the Ownership Certificate, and the Cap Account shall be terminated by the Securities Administrator.

Cap Agreements. (a) The Securities Administrator shall establish and maintain an Eligible Account in its name, in trust for the benefit of the Noteholders, the Cap Account. (b) The Securities Administrator shall deposit any Cap Receipts received on any Cap Agreement Payment Date into the Cap Account. Amounts on deposit in the Cap Account shall remain uninvested. (c) On each Payment Date, the Securities Administrator shall distribute the amounts received by the Trust under each Cap Agreement to holders of the Notes in the following order of priority: (i) from amounts received in respect of the Senior Cap Agreement, concurrently, pro rata, in proportion to the amount of Basis Risk Shortfall applicable to each such Class, to the Senior Notes, any applicable Basis Risk Shortfall for each such Class and such Payment Date; (ii) from amounts received in respect of the Class M-1 Cap Agreement, to the Class M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (iii) from amounts received in respect of the Class M-2 Cap Agreement, to the Class M-2 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (iv) from amounts received in respect of the Class B-1 Cap Agreement, to the Class M-3 B-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (v) from remaining amounts received in respect of the Senior Cap Agreement, concurrently, in proportion to the amount of Accrued Note Interest for each such Class, to the Senior Notes, Accrued Note Interest for each such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(ii); (vi) from remaining amounts received in respect of the Class M-1 Cap Agreement, to the Class M-4 M-1 Notes, Accrued Note Interest for such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(iii); (vii) from remaining amounts received in respect of the Class M-2 Cap Agreement, to the Class M-2 Notes, Accrued Note Interest for such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(iv); (viii) from remaining amounts received in respect of the Class B-1 Cap Agreement, to the Class B-1 Notes, Accrued Note Interest for such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(viii); (ix) from any remaining amounts received in respect of the Senior Cap Agreement, to the Class M-1, Class M-2 and Class B-1 Notes, sequentially, in that order, any remaining unpaid Basis Risk Shortfall Carryforward Amounts; (x) from any remaining amounts received in respect of the Senior Cap Agreement, to the Class M-1, Class M-2 and Class B-1 Notes, sequentially, in that order, any remaining unpaid Accrued Note Interest; (xi) from any remaining amounts received in respect of any Cap Agreement, concurrently, in proportion to the amount of Deferred Interest for each such Class, to the Senior Notes, any applicable Basis Risk Shortfall Deferred Interest for each such Class class and such Payment Date; (vixii) from any remaining amounts received in respect of any Cap Agreement, sequentially, to the Class M-5 M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (vii) to the Class B M-2 Notes and the Class B-1 Notes, in that order, any applicable Basis Risk Shortfall Deferred Interest for each such Class class and such Payment Date; and (viiixiii) to the Certificate Distribution Account, for payment to the Residual Holder (or as otherwise provided in the Trust Agreement), any amount remaining on such Payment Date after application pursuant to clauses (i) through (viixii) above. If such amounts are insufficient to cover the total amount of any Basis Risk Shortfall, the only other source of coverage will be the Monthly Excess Cashflow, if any, that would otherwise be payable to the Ownership Certificate. (d) On the date on which the Cap Agreements have terminated and any amounts therefrom have been paid in accordance with Section 6.05(c) above, any amounts remaining in the Cap Account shall be paid by the Securities Administrator to the Ownership Certificate, and the Cap Account shall be terminated by the Securities Administrator.

Cap Agreements. (a) The Securities Administrator shall establish and maintain an Eligible Account in its name, in trust for the benefit of the Noteholders, the Cap Account. (b) The Securities Administrator shall deposit any Cap Receipts received on any Cap Agreement Payment Date into the Cap Account. Amounts on deposit in the Cap Account shall remain uninvested. (c) On each Payment Date, the Securities Administrator shall distribute the amounts received by the Trust under each Cap Agreement to holders of the Notes in the following order of priority: (i) from amounts received in respect of the Senior Cap Agreement, concurrently, pro rata, in proportion to the amount of Basis Risk Shortfall applicable to each such Class, to the Senior Notes, any applicable Basis Risk Shortfall for each such Class and such Payment Date; (ii) from amounts received in respect of the Class M-1 Cap Agreement, to the Class M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (iii) from amounts received in respect of the Class M-2 Cap Agreement, to the Class M-2 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date;; 201359 HomeBanc 2006-2 Transfer and Servicing Agreement (iv) from amounts received in respect of the Class B-1 Cap Agreement, to the Class M-3 B-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (v) from remaining amounts received in respect of the Senior Cap Agreement, concurrently, in proportion to the amount of Accrued Note Interest for each such Class, to the Senior Notes, Accrued Note Interest for each such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(ii); (vi) from remaining amounts received in respect of the Class M-1 Cap Agreement, to the Class M-4 M-1 Notes, Accrued Note Interest for such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(iii); (vii) from remaining amounts received in respect of the Class M-2 Cap Agreement, to the Class M-2 Notes, Accrued Note Interest for such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(iv); (viii) from remaining amounts received in respect of the Class B-1 Cap Agreement, to the Class B-1 Notes, Accrued Note Interest for such Class for such Payment Date, after giving effect to payments made pursuant to Section 6.02(a)(viii); (ix) from any remaining amounts received in respect of the Senior Cap Agreement, to the Class M-1, Class M-2 and Class B-1 Notes, sequentially, in that order, any remaining unpaid Basis Risk Shortfall Carryforward Amounts; (x) from any remaining amounts received in respect of the Senior Cap Agreement, to the Class M-1, Class M-2 and Class B-1 Notes, sequentially, in that order, any remaining unpaid Accrued Note Interest; (xi) from any remaining amounts received in respect of any Cap Agreement, concurrently, in proportion to the amount of Deferred Interest for each such Class, to the Senior Notes, any applicable Basis Risk Shortfall Deferred Interest for each such Class class and such Payment Date; (vixii) from any remaining amounts received in respect of any Cap Agreement, sequentially, to the Class M-5 M-1 Notes, any applicable Basis Risk Shortfall for such Class and such Payment Date; (vii) to the Class B M-2 Notes and the Class B-1 Notes, in that order, any applicable Basis Risk Shortfall Deferred Interest for each such Class class and such Payment Date; and (viiixiii) to the Certificate Distribution Account, for payment to the Residual Holder (or as otherwise provided in the Trust Agreement), any amount remaining on such Payment Date after application pursuant to clauses (i) through (viixii) above. If such amounts are insufficient to cover the total amount of any Basis Risk Shortfall, the only other source of coverage will be the Monthly Excess Cashflow, if any, that would otherwise be payable to the Ownership Certificate. (d) On the date on which the Cap Agreements have terminated and any amounts therefrom have been paid in accordance with Section 6.05(c) above, any amounts remaining in 201359 HomeBanc 2006-2 Transfer and Servicing Agreement the Cap Account shall be paid by the Securities Administrator to the Ownership Certificate, and the Cap Account shall be terminated by the Securities Administrator.