Distributions on Book-Entry Notes Clause Samples
The "Distributions on Book-Entry Notes" clause defines how payments such as interest or principal are made to holders of notes that are recorded electronically rather than in physical form. In practice, this clause typically specifies that distributions will be made through a central depository system, such as DTC, which credits the accounts of participants who then pass payments on to the beneficial owners. This arrangement streamlines the payment process, reduces administrative burdens, and ensures that holders of book-entry notes receive timely and accurate distributions without the need for physical certificates.
Distributions on Book-Entry Notes. Each distribution with respect to a Book-Entry Note shall be paid to the Depository, which shall credit the amount of such distribution to the accounts of its Depository Participants in accordance with its normal procedures. Each Depository Participant shall be responsible for disbursing such distribution to the Note Owners that it represents and to each indirect participating brokerage firm (a "brokerage firm" or "indirect participating firm") for which it acts as agent. Each brokerage firm shall be responsible for disbursing funds to the Note Owners that it represents. All such credits and disbursements with respect to a Book-Entry Note are to be made by the Depository and the Depository Participants in accordance with the provisions of the Notes. None of the Indenture Trustee, the Paying Agent, the Note Registrar, the Seller, the Insurer, the Trust or the Servicer shall have any responsibility therefor except as otherwise provided by applicable law.
Distributions on Book-Entry Notes. Each distribution with respect to a Book Entry Note shall be paid to the Depository, which shall credit the amount of such distribution to the accounts of its Depository Participants in accordance with its normal procedures. Each Depository Participant shall be responsible for disbursing such distribution to the Note Owners that it represents and to each indirect participating brokerage firm (a “brokerage firm” or “indirect participating firm”) for which it acts as agent. Each brokerage firm shall be responsible for disbursing funds to the Note Owners that it represents. All such credits and disbursements with respect to a Book Entry Note are to be made by the Depository and the Depository Participants in accordance with the provisions of the Notes. None of the Indenture Trustee, the Paying Agent, the Note Registrar, the Seller, the Insurer, the Trust or the Master Servicer shall have any responsibility therefor except as otherwise provided by applicable law.