Class B Investor Default Amount Clause Samples
The 'Class B Investor Default Amount' clause defines the financial consequences and procedures that apply if a Class B investor fails to meet their payment or other contractual obligations. Typically, this clause outlines how the default amount is calculated, such as including unpaid capital contributions, interest, or penalties, and may specify the steps the issuer or other investors can take to recover these amounts. By clearly establishing the repercussions of a default, this clause helps allocate risk among parties and ensures there is a transparent mechanism for addressing investor non-compliance.
Class B Investor Default Amount. On each Transfer Date, ------------------------------- the Servicer or the Trustee, acting in accordance with instructions from the Servicer, shall withdraw from the Finance Charge Account, to the extent funds are available from such Class B Available Funds after giving effect to the withdrawal pursuant to subsections 4.6(b)(i) and (ii), an amount equal to the Class B Investor Default Amount, if any, for the preceding Monthly Period, and the Servicer or the Trustee, as the case may be, shall apply such amount, subject to Section 4.12, in accordance with Section 4.8 as Available Investor Principal Collections.