Distributions on the REMIC Interests Clause Samples
The "Distributions on the REMIC Interests" clause defines how and when payments or distributions are made to holders of REMIC (Real Estate Mortgage Investment Conduit) interests. It typically outlines the schedule, priority, and calculation methods for distributing principal and interest generated from the underlying mortgage assets to the various classes of REMIC investors. For example, it may specify that certain classes receive payments before others or that distributions are made monthly based on collected mortgage payments. The core function of this clause is to ensure transparency and predictability in the allocation of cash flows, thereby protecting investor expectations and supporting the orderly administration of the REMIC structure.
Distributions on the REMIC Interests. On each Distribution Date, amounts on deposit in the Certificate Account shall be treated for federal income tax purposes as applied to distributions on the interests in the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of Section 4.04.
Distributions on the REMIC Interests. (a) On each Distribution Date, funds then available in the Certificate Account shall be treated for federal income tax purposes as applied to distributions on the interests issued in respect of REMIC I, REMIC II and REMIC III as specified in this Section.
(1) On each Distribution Date, the REMIC I Distribution Amount shall be distributed by REMIC I to REMIC II on account of the REMIC I Regular Interests in the amounts and with the priorities set forth in the definition thereof.
(2) On each Distribution Date, the REMIC II Distribution Amount shall be distributed by REMIC II to REMIC III on account of the REMIC II Regular Interests in the amounts and with the priorities set forth in the definition thereof.
(3) On each Distribution Date, the REMIC III Distribution Amount shall be deemed to have been distributed by REMIC III to the Certificateholders on account of the REMIC III Regular Interests represented thereby in the amounts and with the priorities set forth in the definition thereof.
(4) On each Distribution Date, the amount, if any, deemed received by the Class X Certificates in respect of REMIC III Regular Interest IO and under the X-AMB Swap Agreement shall be deemed to have been paid on behalf of the Class X Certificates by the Supplemental Interest Trust Trustee pursuant to Section 4.04(k) in respect of the Net Swap Payment owed to the Swap Counterparty. On each Distribution Date, the amount, if any, received by the Supplemental Interest Trust Trustee from the Swap Counterparty in respect of the Swap Agreement shall be deemed to have been received by the Supplemental Interest Trust Trustee on behalf of the Class X Certificates. On each Distribution Date, amounts paid to the Class A, Class M and Class B Certificates pursuant to Section 4.04(f)(iv) in respect of Available Funds Cap Carryover shall be deemed to have been paid by the Class X Certificateholder pursuant to the X-AMB Swap Agreement.