Collections Received by Servicer Sample Clauses
The "Collections Received by Servicer" clause defines the responsibilities and procedures for how a servicer must handle payments or funds collected from borrowers or other sources. Typically, this clause outlines the timing, method, and account into which the servicer must deposit received collections, and may specify how such funds are to be identified, segregated, or reported. For example, it might require the servicer to deposit all received payments into a designated trust account within a certain number of business days. The core practical function of this clause is to ensure transparency and proper management of collected funds, reducing the risk of misappropriation and ensuring that all parties know how and when collections are processed.
Collections Received by Servicer. The Servicer shall deposit or cause to be deposited promptly into the relevant Lockbox, Collection Account or Concentration Account, and in any event no later than the first Business Day after receipt thereof, all Collections it may receive with respect to any Transferred Receivable.