Common use of Class M Interest Reserve Fund Clause in Contracts

Class M Interest Reserve Fund. (a) The Trustee shall establish and maintain in its name, in trust for the benefit of Class 1-M-4, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates, the Class M Interest Reserve Fund, which shall be a segregated non-interest bearing trust account. On the Closing Date, the Depositor shall deposit into the Class M Interest Reserve Fund an amount equal to the sum of the Class 1-M-4 Interest Reserve Fund Amount, the Class 1-M-5 Interest Reserve Fund Amount, the Class 1-M-6 Interest Reserve Fund Amount and the Class 1-M-7 Interest Reserve Fund Amount. The Depositor will have no obligation to contribute additional amounts to the Class M Interest Reserve Fund after the Closing Date. The Class M Interest Reserve Fund will not receive any amounts from any Net Monthly Excess Cashflow. On each Distribution Date as to which there is a Net WAC Shortfall Amount payable to any of the Class 1-M-4, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates, the Trustee shall withdraw an amount equal to such Net WAC Shortfall Amount (provided, however, that such amount shall not exceed the related Interest Reserve Fund Amount) and distribute such amounts to the Holders of the Class 1-M-4, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates in respect of any Net WAC Shortfall Amount for such class(es) in accordance with the fourth paragraph of Section 4.01(a). Any amount paid to the Holders of any Class 1-M-4, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates pursuant to the preceding sentence in respect of Net WAC Shortfall Amounts shall not be a payment with respect to a Regular Interest in a REMIC within the meaning of Section 860G(a)(1) of the Code. The Trustee shall not be liable for the selection of investments or investment losses incurred thereon. (b) The Class M Interest Reserve Fund is an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any REMIC. The Depositor shall be the beneficial owner of the Class M Interest Reserve Fund, subject to the power of the Trustee to transfer amounts under Section 4.01. Amounts in the Class M Interest Reserve Fund shall, at the written direction of the Depositor, be invested in Permitted Investments that mature no later than the Business Day prior to the next succeeding Distribution Date. In the absence of such written direction, all funds in the Class M Interest Reserve Fund shall remain uninvested. All net income and gain from such investments shall be distributed to the Depositor, not as a distribution in respect of any interest in any REMIC, on each such Distribution Date. All amounts earned on amounts on deposit in the Class M Interest Reserve Fund shall be taxable to the Depositor. Any losses on such investments shall be refunded to the Class M Interest Reserve Fund by the Depositor out of its own funds immediately as realized. If any amounts remain in the Class M Interest Reserve Fund at the termination of the Trust Fund, they will be remitted to the Depositor.

Class M Interest Reserve Fund. (a) The Trustee shall establish and maintain in its name, in trust for the benefit of the Class 1-M-4M-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates, the Class M Interest Reserve Fund, which shall be a segregated non-interest bearing trust account. On the Closing Date, the Depositor shall deposit into the Class M Interest Reserve Fund an amount equal to the sum of the Class 1-M-4 Interest Reserve Fund Amount, the Class 1-M-5 Interest Reserve Fund Amount, the Class 1-M-6 Interest Reserve Fund Amount and the Class 1-M-7 Interest Reserve Fund Amount. The Depositor will have no obligation to contribute additional amounts to the Class M Interest Reserve Fund after the Closing Date. The Class M Interest Reserve Fund will not receive any amounts from any Net Monthly Excess Cashflow. On each Distribution Date as to which there is a Net WAC Shortfall Amount payable to any of the Class 1-M-4M-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates, the Trustee shall withdraw an amount equal to such Net WAC Shortfall Amount (provided, however, that such amount shall not exceed the related Class M Interest Reserve Fund Amount) and distribute such amounts to the Holders of the Class 1-M-4M-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates in respect of any such Net WAC Shortfall Amount for each such class(es) Class in accordance with the fourth paragraph of Section 4.01(a). Any amount paid to the Holders of any Class 1-M-4M-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates pursuant to the preceding sentence in respect of Net WAC Shortfall Amounts shall not be a payment with respect to a Regular Interest in a REMIC within the meaning of Section 860G(a)(1) of the Code. The Trustee shall not be liable for the selection of investments or investment losses incurred thereon. (b) The Class M Interest Reserve Fund is an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any REMIC. The Depositor shall be the beneficial owner of the Class M Interest Reserve Fund, subject to the power of the Trustee to transfer amounts under Section 4.01. Amounts in the Class M Interest Reserve Fund shall, at the written direction of the Depositor, be invested in Permitted Investments that mature no later than the Business Day prior to the next succeeding Distribution Date. In the absence of such written direction, all funds in the Class M Interest Reserve Fund shall remain uninvested. All net income and gain from such investments shall be distributed to the Depositor, not as a distribution in respect of any interest in any REMIC, on each such Distribution Date. All amounts earned on amounts on deposit in the Class M Interest Reserve Fund shall be taxable to the Depositor. Any losses on such investments shall be refunded to the Class M Interest Reserve Fund by the Depositor out of its own funds immediately as realized. If any amounts remain in the Class M Interest Reserve Fund at the termination of the Trust Fund, they will be remitted to the Depositor.

Class M Interest Reserve Fund. (a) The Trustee shall establish and maintain in its name, in trust for the benefit of the Class 1-M-4X-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates, the Class M Interest Reserve Fund, which shall be a segregated non-interest bearing trust account. On the Closing Date, the Depositor shall deposit into the Class M Interest Reserve Fund an amount equal to the sum of the Class 1-M-4 Interest Reserve Fund Amount, the Class 1-M-5 Interest Reserve Fund Amount, the Class 1-M-6 Interest Reserve Fund Amount and the Class 1-M-7 Interest Reserve Fund Amount. The Depositor will have no obligation to contribute additional amounts to the Class M Interest Reserve Fund after the Closing Date. The Class M Interest Reserve Fund will not receive any amounts from any Net Monthly Excess Cashflow. On each Distribution Date as to which there is a Net WAC Shortfall Amount payable to any of the Class 1-M-4X-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates, the Trustee shall withdraw an amount equal to such Net WAC Shortfall Amount (provided, however, that such amount shall not exceed the related Class M Interest Reserve Fund Amount) and distribute such amounts to the Holders of the Class 1-M-4X-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates in respect of any such Net WAC Shortfall Amount for each such class(es) Class in accordance with the fourth paragraph of Section 4.01(a). Any amount paid to the Holders of any Class 1-M-4X-0, Xxxxx X-0, Class 1-M-5, Class 1-M-6 and Class 1-M-7 Certificates pursuant to the preceding sentence in respect of Net WAC Shortfall Amounts shall not be a payment with respect to a Regular Interest in a REMIC within the meaning of Section 860G(a)(1) of the Code. The Trustee shall not be liable for the selection of investments or investment losses incurred thereon. (b) The Class M Interest Reserve Fund is an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any REMIC. The Depositor shall be the beneficial owner of the Class M Interest Reserve Fund, subject to the power of the Trustee to transfer amounts under Section 4.01. Amounts in the Class M Interest Reserve Fund shall, at the written direction of the Depositor, be invested in Permitted Investments that mature no later than the Business Day prior to the next succeeding Distribution Date. In the absence of such written direction, all funds in the Class M Interest Reserve Fund shall remain uninvested. All net income and gain from such investments shall be distributed to the Depositor, not as a distribution in respect of any interest in any REMIC, on each such Distribution Date. All amounts earned on amounts on deposit in the Class M Interest Reserve Fund shall be taxable to the Depositor. Any losses on such investments shall be refunded to the Class M Interest Reserve Fund by the Depositor out of its own funds immediately as realized. If any amounts remain in the Class M Interest Reserve Fund at the termination of the Trust Fund, they will be remitted to the Depositor.