Common use of COLLATERAL PROCEEDS ACCOUNT; APPLICATION OF FUNDS Clause in Contracts

COLLATERAL PROCEEDS ACCOUNT; APPLICATION OF FUNDS. (a) On or before the Closing Date, the Trustee shall establish, at its Corporate Trust Office, a segregated account that shall be the "Collateral Proceeds Account" and shall be clearly labeled as such. The Trustee shall promptly deposit in the Collateral Proceeds Account all Servicer Remittances received by it with respect to the Student Loan Collateral, including any liquidation proceeds related to Defaulted Student Loans and late payment charges, if any. All remittances deposited from time to time in the Collateral Proceeds Account, all other deposits therein pursuant to this Indenture, and all investments made with such amounts, including all income or other gain from such investments, shall be held by the Trustee in the Collateral Proceeds Account as part of the Trust Estate as herein provided, subject to withdrawal by the Trustee for the purposes set forth in Subsections (c) and (d) of this Section. The Issuer may, at any time and at its option, deposit cash (or Eligible Investments maturing prior to the next Payment Date) in the Collateral Proceeds Account for the purpose of avoiding any Event of Default which would otherwise result pursuant to Section 6.01(1), but the Issuer is under no obligation to do so. All funds withdrawn from the Collateral Proceeds Account pursuant to Subsection (c) of this Section for the purpose of making payments to the Holders of Bonds shall be so withdrawn in accordance with Section 9.02.

COLLATERAL PROCEEDS ACCOUNT; APPLICATION OF FUNDS. (a) On or before the Closing Date, the Trustee shall establish, at its Corporate Trust Office, a segregated account that shall be the "Collateral Proceeds Account" and shall be clearly labeled as such. The Trustee shall promptly deposit in the Collateral Proceeds Account all Servicer Remittances received by it with respect to the Student Loan Collateral, including any liquidation proceeds related to Defaulted Student Loans and late payment charges, if any. All remittances deposited from time to time in the Collateral Proceeds Account, all other deposits therein pursuant to this Indenture, and all investments made with such amounts, including all income or other gain from such investments, shall be held by the Trustee in the Collateral Proceeds Account as part of the Trust Estate as herein provided, subject to withdrawal by the Trustee for the purposes set forth in Subsections Subsection (c) and (d) of this Section. The Issuer may, at any time and at its option, deposit cash (or Eligible Investments maturing prior to the next Payment Date) in the Collateral Proceeds Account for the purpose of avoiding any Event of Default which would otherwise result pursuant to Section 6.01(1), but the Issuer is under no obligation to do so. All funds withdrawn from the Collateral Proceeds Account pursuant to Subsection (c) of this Section for the purpose of making payments to the Holders of Bonds shall be so withdrawn in accordance with Section 9.02.

COLLATERAL PROCEEDS ACCOUNT; APPLICATION OF FUNDS. (a) On or before the Closing Date, the Trustee shall establish, at its Corporate Trust Office, a segregated account that shall be the "Collateral Proceeds Account" and shall be clearly labeled as such. The Trustee shall promptly cause the Servicer to directly deposit in the Collateral Proceeds Account all Servicer Remittances received by it with respect to the Student Loan Collateral, including any liquidation proceeds related to Defaulted Student Loans and late payment charges, if anyLoans. All remittances deposited from time to time in the Collateral Proceeds Account, all other deposits therein pursuant to this Indenture, and all investments made with such amounts, including all income or other gain from such investments, and all amounts paid by the Bond Insurer to the Trustee pursuant to the Bond Insurance Policy or pursuant to the Surety Bond, if any, shall be held by the Trustee in the Collateral Proceeds Account Account, as part of the Trust Estate as herein provided, subject to withdrawal by the Trustee for the purposes set forth in Subsections (c) and (d) of this Section. The Issuer may, at any time and at its option, deposit cash (or Eligible Investments maturing prior to the next Payment Date) in the Collateral Proceeds Account for the purpose of avoiding any Event of Default which would otherwise result pursuant to Section 6.01(1), but the Issuer is under no obligation to do so. All funds withdrawn from the Collateral Proceeds Account pursuant to Subsection (c) of this Section for the purpose of making payments to the Holders of Bonds shall be so withdrawn in accordance with Section 9.02.