Common use of Collection of Indebtedness and Suits for Enforcement by Trustee; Distribution of Amounts Received in Respect of Defaulted Bonds Clause in Contracts

Collection of Indebtedness and Suits for Enforcement by Trustee; Distribution of Amounts Received in Respect of Defaulted Bonds. (a) If: (i) default is made in the payment of any installment of interest on any Bond when the same becomes due and payable, and such default continues unremedied for the period specified in the indenture (as identified in Exhibit A to the Series Trust Agreement), or, if no such period is specified, five days, after receipt by the Issuer of notice thereof from the Trustee or receipt by the Issuer and the Trustee of notice thereof from the Holders of Outstanding Certificates representing at least 25% of the Voting Rights; or (ii) default is made in the payment of the principal of or any installment of the principal of any Bond when the same becomes due and payable, and such default continues unremedied for the period specified in the indenture (as identified in Exhibit A to the Series Trust Agreement), or, if no such period is specified, thirty (30) days, after receipt by the Issuer of notice thereof from the Trustee or receipt by the Issuer and the Trustee of notice thereof from the Holders of Outstanding Certificates representing at least 25% of the Voting Rights; and the Issuer shall, upon demand of the Trustee, fail to pay forthwith to the Trustee, for the benefit of the Holders, the whole amount then due and payable on such Bonds for principal and interest, with interest upon the overdue principal, at the rate borne by the Bonds and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, to the extent permitted by law (such event, an "Issuer Payment Default"), then the Trustee, in its own name and as trustee of an express trust, subject to provision being made by the Holders for indemnification against costs, expenses and liabilities in a form satisfactory to the Trustee, shall institute a Proceeding for the collection of the sums so due and unpaid, and shall prosecute such Proceeding to judgment or (b) In the event that the Trustee receives money or other property in respect of the Bonds (other than a scheduled interest payment with respect to an Interest Payment Date, the scheduled payment of principal on or with respect to the stated maturity date of the Bonds, or the payment of principal and any redemption premium on or with respect to the earlier redemption of the Bonds) as a result of a payment default on the Bonds, or actual notice that such moneys or other property will be paid to the Trustee, the Trustee shall promptly give notice (as provided in Section 9.04 hereof) to DTC or, if the Certificates are not then held by DTC or any other depository, directly to the Holders of the Certificates then outstanding and unpaid. Such notice shall state that, not later than thirty (30) days after the receipt of such moneys or other property, the Trustee shall allocate and distribute such moneys or other property to the Holders of the Outstanding Certificates then unpaid, in proportion to the Accreted Value or, with respect to Stripped Bond Certificates, Callable Stripped Bond Certificates and Pooled Certificates, the principal amount, of each class of Outstanding Certificates, and within each class, pro rata by aggregate Accreted Value or principal amount, as applicable. Property received, other than cash, shall be liquidated by the Trustee in a commercially reasonable manner and the proceeds thereof, after deduction of all reasonable costs of such liquidation, distributed in cash, only to the extent necessary to avoid distribution of fractional securities. The Trustee shall not be responsible for the failure of any Person to maximize the price at which such property may be sold. No Person effecting a sale on behalf of the Trustee shall be liable therefor so long as such sale is effected in a commercially reasonable manner.

Collection of Indebtedness and Suits for Enforcement by Trustee; Distribution of Amounts Received in Respect of Defaulted Bonds. (a) If: (i) default is made in the payment of any installment of interest on any Bond when the same becomes due and payable, and such default continues unremedied for the period specified in the indenture (as identified in Exhibit A to the Series Trust Agreement), or, if no such period is specified, five days, after receipt by the Issuer of notice thereof from the Trustee or receipt by the Issuer and the Trustee of notice thereof from the Holders of Outstanding Certificates representing at least 25% of the Voting Rights; or (ii) default is made in the payment of the principal of or any installment of the principal of any Bond when the same becomes due and payable, and such default continues unremedied for the period specified in the indenture (as identified in Exhibit A to the Series Trust Agreement), or, if no such period is specified, thirty (30) days, after receipt by the Issuer of notice thereof from the Trustee or receipt by the Issuer and the Trustee of notice thereof from the Holders of Outstanding Certificates representing at least 25% of the Voting Rights; and the Issuer shall, upon demand of the Trustee, fail to pay forthwith to the Trustee, for the benefit of the Holders, the whole amount then due and payable on such Bonds for principal and interest, with interest upon the overdue principal, at the rate borne by the Bonds and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, to the extent permitted by law (such event, an "Issuer Payment Default"), then the Trustee, in its own name and as trustee of an express trust, subject to provision being made by the Holders for indemnification against costs, expenses and liabilities in a form satisfactory to the Trustee, shall institute a Proceeding for the collection of the sums so due and unpaid, and shall prosecute such Proceeding to judgment oror final decree or settlement, and shall enforce the same against the Issuer or other obligor upon the Bonds and collect in the manner provided by law out of the property of the Issuer or other obligor upon the Bonds, wherever situated, the moneys adjudged or decreed to be payable, unless otherwise directed by Holders of Outstanding Certificates representing not less than a majority of the voting Rights. In connection therewith, the Trustee shall use its best reasonable efforts in accordance with such normal and customary procedures it shall deem necessary or advisable, and shall have the power and authority, acting alone, to do any and all things in connection therewith and the administration of the Trust as it may deem necessary or advisable. (b) In the event that the Trustee receives money or other property in respect of the Bonds (other than a scheduled interest payment with respect to an Interest Payment Date, the scheduled payment of principal on or with respect to the stated maturity date of the Bonds, or the payment of principal and any redemption premium on or with respect to the earlier redemption of the Bonds) as a result of a payment default on the Bonds, or actual notice that such moneys or other property will be paid to the Trustee, the Trustee shall promptly give notice (as provided in Section 9.04 hereof) to DTC or, if the Certificates are not then held by DTC or any other depository, directly to the Holders of the Certificates then outstanding and unpaid. Such notice shall state that, not later than thirty (30) days after the receipt of such moneys or other property, the Trustee shall allocate and distribute such moneys or other property to the Holders of the Outstanding Certificates then unpaid, in proportion to the Accreted Value or, with respect to Stripped Bond Certificates, Callable Stripped Bond Certificates and Pooled Certificates, the principal amount, of each class of Outstanding Certificates, and within each class, pro rata by aggregate Accreted Value or principal amount, as applicable. Property received, other than cash, shall be liquidated by the Trustee in a commercially reasonable manner and the proceeds thereof, after deduction of all reasonable costs of such liquidation, distributed in cash, only to the extent necessary to avoid distribution of fractional securities. The Trustee shall not be responsible for the failure of any Person to maximize the price at which such property may be sold. No Person effecting a sale on behalf of the Trustee shall be liable therefor so long as such sale is effected in a commercially reasonable manner.

Collection of Indebtedness and Suits for Enforcement by Trustee; Distribution of Amounts Received in Respect of Defaulted Bonds. (a) If: (i) default is made in the payment of any installment of interest on any Bond when the same becomes due and payable, and such default continues unremedied for the period specified in the indenture (as identified in Exhibit A to the Series Trust Agreement), or, if no such period is specified, five days, ) after receipt by the Issuer of notice thereof from the Trustee or receipt by the Issuer and the Trustee of notice thereof from the Holders of Outstanding Certificates representing at least 25% of the Voting Rights; or (ii) default is made in the payment of the principal of or any installment of the principal of any Bond when the same becomes due and payable, and such default continues unremedied for the period specified in the indenture (as identified in Exhibit A to the Series Trust Agreement), or, if no such period is specified, thirty (30) days, ) after receipt by the Issuer of notice thereof from the Trustee or receipt by the Issuer and the Trustee of notice thereof from the Holders of Outstanding Certificates representing at least 25% of the Voting Rights; and the Issuer shall, upon demand of the Trustee, fail to pay forthwith to the Trustee, for the benefit of the Holders, the whole amount then due and payable on such Bonds for principal and interest, with interest upon the overdue principal, at the rate borne by the Bonds and in addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, to the extent permitted by law (such event, an "Issuer Payment Default"), then the Trustee, in its own name and as trustee of an express trust, subject to provision being made by the Holders for indemnification against costs, expenses and liabilities in a form satisfactory to the Trustee, shall institute a Proceeding for the collection of the sums so due and unpaid, and shall prosecute such Proceeding to judgment oror final decree or settlement, and shall enforce the same against the Issuer or other obligor upon the Bonds and collect in the manner provided by law out of the property of the Issuer or other obligor upon the Bonds, wherever situated, the moneys adjudged or decreed to be payable, unless otherwise directed by Holders of Outstanding Certificates representing not less than a majority of the voting Rights. In connection therewith, the Trustee shall use its best reasonable efforts in accordance with such normal and customary procedures it shall deem necessary or advisable, and shall have the power and authority, acting alone, to do any and all things in connection therewith and the administration of the Trust as it may deem necessary or advisable. (b) In the event that the Trustee receives money or other property in respect of the Bonds (other than a scheduled interest payment with respect to an Interest Payment Date, the scheduled payment of principal on or with respect to the stated maturity date of the Bonds, or the payment of principal and any redemption premium on or with respect to the earlier redemption of the Bonds) as a result of a payment default on the Bonds, or actual notice that such moneys or other property will be paid to the Trustee, the Trustee shall promptly give notice (as provided in Section 9.04 hereof) to DTC or, if the Certificates are not then held by DTC or any other depository, directly to the Holders of the Certificates then outstanding and unpaid. Such notice shall state that, not later than thirty (30) days after the receipt of such moneys or other property, the Trustee shall allocate and distribute such moneys or other property to the Holders of the Outstanding Certificates then unpaid, in proportion to the Accreted Value or, with respect to Stripped Bond Certificates, Callable Stripped Bond Certificates and Pooled Certificates, the principal amount, of each class of Outstanding Certificates, and within each class, pro rata by aggregate Accreted Value or principal face amount, as applicable. Property received, other than cash, shall be liquidated by the Trustee in a commercially reasonable manner and the proceeds thereof, after deduction of all reasonable costs of such liquidation, distributed in cash, only to the extent necessary to avoid distribution of fractional securities. The Trustee shall not be responsible for the failure of any Person to maximize the price at which such property may be sold. No Person effecting a sale on behalf of the Trustee shall be liable therefor so long as such sale is effected in a commercially reasonable manner.