Distributions; Reserve Account Clause Samples
The "Distributions; Reserve Account" clause defines how and when profits or funds are distributed to stakeholders, while also establishing a reserve account to set aside a portion of funds for future obligations or contingencies. Typically, this clause outlines the percentage or amount of profits to be distributed, the timing of such distributions, and the specific conditions under which funds must be retained in the reserve account, such as to cover anticipated expenses or liabilities. Its core function is to ensure that the entity maintains sufficient liquidity to meet future needs while providing a clear framework for distributing available profits to stakeholders, thereby balancing immediate returns with prudent financial management.
Distributions; Reserve Account. Statements to Certificateholders and Noteholders
Distributions; Reserve Account. (A) Each Obligor may maintain a Distributions Reserve Account into which the amount of any permitted distribution under clause 28.23 (Distributions), permitted indebtedness and contributions to the capital of an Obligor may be credited subject to compliance with the Cash Waterfall and such amounts shall not be subordinated to the rights of the Lenders. Amounts standing to the credit of the Distributions Reserve Accounts shall not be available to the Finance Parties whether as secured or unsecured creditors of the relevant Obligor and irrespective of whether an Event of Default has occurred. The Obligors may grant security over their Distributions Reserve Account in favour of any person and shall not be required to grant any Security Interest over the Distributions Reserve Account in favour of the Finance Parties. Sums standing to the credit of the Distributions Reserve Accounts may be withdrawn and applied as the Obligor sees fit.
(B) The Lenders will account to KEH and/or the relevant Obligor if and to the extent they receive any proceeds from a Distributions Reserve Account or any account of KEO (which is not a Project Account), and shall hold any such moneys to the account of, and on trust for, KEH or, as the case may be, KEO. If any other person has a Security Interest or claim against amounts standing to the credit of a Distributions Reserve Account, any such interest or claim shall be limited to these amounts and they shall not have recourse to the assets of any Obligor generally, nor shall they be entitled to make any claim or enforce against, or initiate any Insolvency Proceedings of any kind, against any Obligor.
(C) Any Lender that is in receipt of proceeds as described in paragraph (B) above, shall turnover such proceeds to KEH or, as the case may be, KEO in accordance with paragraph (C) of clause 20.2 (Other bank accounts) above.
Distributions; Reserve Account. Statements to Certificateholders and Noteholders Section 5.01 Establishment of Deposit Account...........................................................29 Section 5.02 Collections................................................................................30 Section 5.03 Application of Collections.................................................................31 Section 5.04 Additional Deposits........................................................................32 Section 5.05 Distributions..............................................................................32 Section 5.06 Reserve Account............................................................................33 Section 5.07 Statements to Noteholders and Certificateholders...........................................34 Section 5.08 Net Deposits...............................................................................35
Distributions; Reserve Account. Statements to Certificateholders and Noteholders ------------------------------------------------
SECTION 5.1 Establishment of Trust Accounts............................. 17 SECTION 5.2 Collections................................................. 18 SECTION 5.3 Application of Collections.................................. 19 SECTION 5.4
Distributions; Reserve Account. Each Obligor may maintain a Distributions Reserve Account into which the amount of any permitted distribution under clause 28.23 (Distributions), permitted indebtedness and contributions to the capital of an Obligor may be credited subject to compliance with the Cash Waterfall and such amounts shall not be subordinated to the rights of the Lenders. Amounts standing to the credit of the Distributions Reserve Accounts shall not be available to the Finance Parties whether as secured or unsecured creditors of the relevant Obligor and irrespective of whether an Event of Default has occurred. The Obligors may grant security over their Distributions Reserve Account in favour of any person and shall not be required to grant any Security Interest over the Distributions Reserve Account in favour of the Finance Parties. Sums standing to the credit of the Distributions Reserve Accounts may be withdrawn and applied as the Obligor sees fit.
Distributions; Reserve Account. Statements to Certificateholders and Noteholders
SECTION 5.1 Establishment of Trust Accounts . . . . . . . . . . . . . . . . . . . SECTION 5.2 Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SECTION 5.3
Distributions; Reserve Account. STATEMENTS TO CERTIFICATEHOLDERS Section 4.1 Establishment of Accounts.......................................37 Section 4.2 Collections.....................................................41 Section 4.3 Advances........................................................42 Section 4.4 Additional Deposits; Net Deposits...............................43 Section 4.5 Distributions...................................................43 Section 4.6
Distributions; Reserve Account