Common use of Facility Debt under Clause in Contracts

Facility Debt under. a Funding Agreement and secured by a Security Document must be issued and held only by Institutional Lenders who qualify as such at the date the Security Document is executed and delivered (or, if later, at the date any such Institutional Lender becomes a party to the Security Document), except that (a) qualified investors other than Institutional Lenders may acquire and hold interests in Facility Debt in connection with the securitization or syndication of Facility Debt through a public or private offering, but only if an Institutional Lender acts as Collateral Agent for such Facility Debt, (b) PABs may be issued, acquired and held by parties other than Institutional Lenders but only if an Institutional Lender acts as indenture trustee for the PABs and (c) Subordinate Debt is not subject to this provision.