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 All funds withdrawn from the Collateral Proceeds Account pursuant to Subsection (c) of this Section for the purpose of making payments to the Holders of Bonds shall be so withdrawn in accordance with Section 9.02. (b) So long as no Default or Event of Default shall have occurred and be continuing, all amounts in the Collateral Proceeds Account shall be invested and reinvested by the Trustee in one or more Eligible Investments pursuant to an Issuer Order. Such investments are subject to the following restrictions: (i) except as permitted by clause (ii) below, no investment of any amount held in the Collateral Proceeds Account may mature later than the Business Day immediately preceding the next Payment Date; and (ii) any investment (including repurchase agreements) in which State Street Bank and Trust Company, in either its commercial or trust capacity, is the obligor, may mature on a Payment Date if, under this Section such investment could otherwise mature on the Business Day immediately preceding such Payment Date. All income or other gains from investment of funds deposited in the Collateral Proceeds Account shall be deposited by the Trustee in the Collateral Proceeds Account immediately upon receipt, and any loss resulting from such investment shall be charged to the Collateral Proceeds Account, and the Trustee shall not be responsible in any way for such loss on any investment made pursuant to this Indenture, except in its commercial capacity as obligor. (c) Unless the Bonds have been declared due and payable pursuant to Section 6.02 and funds collected by the Trustee are being applied in accordance with Section 6.07, amounts in the Collateral Proceeds Account on any Payment Date deposited during the Collection Period which ended during the calendar month in which the Payment Date occurs shall be withdrawn from the Collateral Proceeds Account, in the amounts required but not to exceed the Available Payment Amount, for application on any Payment Date as follows: FIRST, to the Class A Bonds for the payment of accrued interest at the related Bond Interest Rate; SECOND, to the Class B Bonds for the payment of accrued interest at the related Bond Interest Rate; THIRD, to the payment to the Reserve Fund of any shortfall in the Interest Reserve Amount for the Interest Accrual Period commencing on such Payment Date; provided that, if after giving effect to all payments of interest and principal on the Bonds on such Payment Date, the Interest Reserve Amount equals or exceeds the Aggregate Current Principal Amount of Outstanding Bonds, then the Trustee shall declare all the Bonds to be immediately due and payable pursuant to Section 3.09(c); FOURTH, to the payment of any unpaid amount due the Trustee pursuant to Section 7.07; FIFTH, to the payment of any unpaid amount due any Accountants for services rendered pursuant to Section 9.12 hereof or otherwise under this Indenture; SIXTH, to the payment of any unpaid amount due the Owner Trustee pursuant to the Trust agreement; SEVENTH, to the payment of any unpaid amount due the Administrator pursuant to the Administration Agreement; EIGHTH, on each Principal Payment Date, to the Class A Bonds for the payment of any unpaid principal amount of the Class A Bonds; NINTH, on each Principal Payment Date following payment in full of the Class A Bonds (which initially may be the same Principal Payment Date on which the Class A Bonds are paid in full), to the Class B Bonds for the payment of any unpaid principal amount of the Class B Bonds; TENTH, if such Payment Date is not a Principal Payment Date, any remaining amounts in the Collateral Proceeds Account shall be deposited in the Reserve Fund; each such amount in paragraphs FIRST, SECOND, EIGHTH and NINTH above being the amount thereof set forth in the Payment Date Statement or in the notice from the Issuer given pursuant to Section 11.02.
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Samples: Indenture (National Collegiate Trust 1996-S2), Indenture (National Collegiate Trust 1996-S2)
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.
(b) So long as no Default or Event of Default shall have occurred and be continuing, all amounts in the Collateral Proceeds Account shall be invested and reinvested by the Trustee in one or more Eligible Investments pursuant to an Issuer Order. Such investments are subject to the following restrictions:
(i) except as permitted by clause (ii) below, no investment of any amount held in the Collateral Proceeds Account may mature later than the Business Day immediately preceding the next Payment Date; and
(ii) any investment (including repurchase agreements) in which State Street Bank and Trust Company, in either its commercial or trust capacity, is the obligor, may mature on a Payment Date if, under this Section such investment could otherwise mature on the Business Day immediately preceding such Payment Date. All income or other gains from investment of funds deposited in the Collateral Proceeds Account shall be deposited by the Trustee in the Collateral Proceeds Account immediately upon receipt, and any loss resulting from such investment shall be charged to the Collateral Proceeds Account, and the Trustee shall not be responsible in any way for such loss on any investment made pursuant to this Indenture, except in its commercial capacity as obligor.
(c) Unless the Bonds have been declared due and payable pursuant to Section 6.02 and funds collected by the Trustee are being applied in accordance with Section 6.07, amounts in the Collateral Proceeds Account on any Payment Date deposited during the Collection Period which ended during the calendar month in which the Payment Date occurs shall be withdrawn from the Collateral Proceeds Account, together with amounts on deposit in the Reserve Fund in excess of the Interest Reserve Amount, in each case in the amounts required but not to exceed the Available Payment Amount, for application on any Payment Date as follows: FIRSTfirst, if such Payment Date is in September, commencing with the Payment Date occurring on September 20, 1998, to the Class A payment of (x) the Guaranty Fee and the Surety Fee and (y) the Guaranty Fee Arrearage and the Surety Fee Arrearage, if any, provided that no Insured Payments shall be used for such payments; second, to the Bonds for the payment of accrued interest at the related Bond Interest Rate; SECONDthird, if such Payment Date is the Stated Maturity, to the Class B Bonds for the payment of accrued interest at any unpaid principal amount of the related Bonds; fourth, to the payment of Reimbursement Amounts then due and owing under the Reimbursement Agreement (as same is certified to the Trustee by the Bond Interest RateInsurer); THIRDprovided that no Insured Payments shall be used for such payments; fifth, to the payment to the Reserve Fund of any shortfall in the Interest Reserve Amount for the Interest Accrual Period commencing on such Payment Date; provided, that no Insured Payments under the Bond Insurance Policy shall be used for such payments; provided further that, if after giving effect to all payments of interest and principal on the Bonds on such Payment Date, the Interest Reserve Amount equals or exceeds the Aggregate Current Principal Amount of Outstanding Bonds, then the Trustee shall declare all the Bonds to be immediately due and payable pursuant to Section 3.09(c); FOURTHsixth, to the payment of any unpaid amount scheduled fees due the Trustee pursuant to Section 7.07; FIFTHprovided, that no Insured Payments under the Bond Insurance Policy shall be used for such payments; seventh, to the payment of any unpaid amount fees due any Accountants for services rendered pursuant to Section 9.12 hereof or otherwise under this Indenture; SIXTHprovided, that no Insured Payments under the Bond Insurance Policy shall be used for such payments; eighth, to the payment of any scheduled fees due the Owner Trustee pursuant to the Trust agreement; provided, that no Insured Payments under the Bond Insurance Policy shall be used for such payments; ninth, to the payment of any scheduled fees due to the Administrator pursuant to the Administration Agreement; tenth, to the Owner Trustee, for the benefit of the Funding Owners, the amount of any Funding Owner Payments which are designated liquidity capital contributions under the Trust Agreement which have previously been deposited into the Reserve Fund pursuant to Section 3.11 hereof and which have not been repaid to the Owner Trustee for the benefit of the Funding Owners; provided, that no Insured Payments under the Bond Insurance Policy shall be used for such payments; eleventh, on each Principal Payment Date that is not the Stated Maturity, to the Bonds for the payment of any unpaid principal amount of the Bonds; twelfth, to the payment of any unpaid amount due the Trustee pursuant to Section 7.07; thirteenth, to the payment of any unpaid amount due the Owner Trustee pursuant to the Trust agreement; SEVENTHfourteenth, to the payment of any unpaid amount due the Administrator pursuant to the Administration Agreement; EIGHTH, on each Principal Payment Date, to the Class A Bonds for the payment of any unpaid principal amount of the Class A Bonds; NINTH, on each Principal Payment Date following payment in full of the Class A Bonds (which initially may be the same Principal Payment Date on which the Class A Bonds are paid in full), to the Class B Bonds for the payment of any unpaid principal amount of the Class B Bonds; TENTHfifteenth, if such Payment Date is not a Principal Payment Date, any remaining amounts in the Collateral Proceeds Account shall be deposited in the Reserve Fund; each such amount in paragraphs FIRST, SECOND, EIGHTH second and NINTH eleventh above being the amount thereof set forth in the Payment Date Statement or in the notice from the Issuer given pursuant to Section 11.02; provided, that, Insured Payments under the Bond Insurance Policy will only be applied to the payment of interest on the Bonds on any Payment Date and principal on the Bonds on the Stated Maturity; provided, further, that prior to the first Principal Payment Date, twelfth, thirteenth and fourteenth above will only be paid upon the Bond Insurer's consent, which consent will not unreasonably be withheld.
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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.
(b) So long as no Default or Event of Default shall have occurred and be continuing, all amounts in the Collateral Proceeds Account shall be invested and reinvested by the Trustee in one or more Eligible Investments pursuant to an Issuer Order. Such investments are subject to the following restrictions:
(i) except as permitted by clause (ii) below, no investment of any amount held in the Collateral Proceeds Account may mature later than the Business Day immediately preceding the next Payment Date; and
(ii) any investment (including repurchase agreements) in which State Street Bank and Trust Company, in either its commercial or trust capacity, is the obligor, may mature on a Payment Date if, under this Section such investment could otherwise mature on the Business Day immediately preceding such Payment Date. All income or other gains from investment of funds deposited in the Collateral Proceeds Account shall be deposited by the Trustee in the Collateral Proceeds Account immediately upon receipt, and any loss resulting from such investment shall be charged to the Collateral Proceeds Account, and the Trustee shall not be responsible in any way for such loss on any investment made pursuant to this Indenture, except in its commercial capacity as obligorobligor of an investment.
(c) Unless the Bonds have been declared due and payable pursuant to Section 6.02 and funds collected by the Trustee are being applied in accordance with Section 6.07, amounts in the Collateral Proceeds Account on any Payment Date deposited during the Collection Period which ended during the calendar month in which the Payment Date occurs shall be withdrawn from the Collateral Proceeds Account, in the amounts required but not to exceed the Available Payment Amount, for application on any Payment Date as follows: FIRST, to the Class A Bonds for the payment of accrued interest at the related Bond Interest Rate; SECOND, to the Class B Bonds for the payment of accrued interest at the related Bond Interest Rate; THIRD, to the payment to the Reserve Fund of any shortfall in the Interest Reserve Amount for the Interest Accrual Period commencing on such Payment Date; provided that, if after giving effect to all payments of interest and principal on the Bonds on such Payment Date, the Interest Reserve Amount equals or exceeds the Aggregate Current Principal Amount of Outstanding Bonds, then the Trustee shall declare all the Bonds to shall be immediately due and payable pursuant to Section 3.09(c); FOURTH, to the payment of any unpaid amount due the Trustee pursuant to Section 7.07; FIFTH, to the payment of any unpaid amount due any Accountants for services rendered pursuant to Section 9.12 hereof or otherwise under this Indenture; SIXTH, to the payment of any unpaid amount due the Owner Trustee pursuant to the Trust agreement; SEVENTH, to the payment of any unpaid amount due the Administrator pursuant to the Administration Agreement; EIGHTH, on each Principal Payment Date, to the Class A Bonds for the payment of any unpaid principal amount of the Class A Bonds; NINTH, on each Principal Payment Date following payment in full of the Class A Bonds (which initially may be the same Principal Payment Date on which the Class A Bonds are paid in full), to the Class B Bonds for the payment of any unpaid principal amount of the Class B Bonds; TENTH, if such Payment Date is not a Principal Payment Date, any remaining amounts in the Collateral Proceeds Account shall be deposited in the Reserve Fund; each such amount in paragraphs FIRST, SECOND, EIGHTH and NINTH above being the amount thereof set forth in the Payment Date Statement or in the notice from the Issuer given pursuant to Section 11.02.
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