Common use of Further Encumbrance of Trust Property Clause in Contracts

Further Encumbrance of Trust Property. (a) Immediately upon the conveyance to the Trust by the Seller of any item of Transferred Property pursuant to Sections 2.1 and 2.2, all right, title and interest of the Seller in and to such item of Transferred Property shall terminate, and all such right, title and interest shall vest in the Trust, in accordance with the Issuer Trust Agreement and Sections 3802 and 3805 of the Statutory Trust Statute (as defined in the Issuer Trust Agreement). (b) Immediately upon the vesting of the Transferred Property in the Trust, the Trust, pursuant to the Grantor Trust Agreement, will (i) on the Closing Date, simultaneously contribute the Initial Transferred Property to the Grantor Trust in exchange for the Grantor Trust Certificate, and (ii) on each Subsequent Transfer Date, upon its acquisition of Subsequent Transferred Property, simultaneously therewith contribute such Subsequent Transferred Property to the Grantor Trust. Pursuant to the Indenture, the Trust shall grant a security interest in the Grantor Trust Certificate, among other assets, to secure the repayment of the Notes. The Residual Pass-through Certificates shall represent beneficial ownership interests in the Trust Property, and the Residual Certificateholders shall be entitled to receive distributions with respect thereto as set forth in Section 5.7(a)(xxiii). As holder of 100% of the Grantor Trust Certificate, the Trust, pursuant to the Grantor Trust Agreement, has been authorized by the Grantor Trust to exercise the rights of the Grantor Trust as owner of the Transferred Property, including, without limitation, directing the disposition of the proceeds of the Receivables.

Further Encumbrance of Trust Property. (a) Immediately upon the conveyance to the Trust by the Seller of any item of Transferred Property pursuant to Sections 2.1 and 2.2, all right, title and interest of the Seller in and to such item of Transferred Property shall terminate, and all such right, title and interest shall vest in the Trust, in accordance with the Issuer Trust Agreement and Sections 3802 and 3805 of the Statutory Trust Statute (as defined in the Issuer Trust Agreement). (b) Immediately upon the vesting of the Transferred Property in the Trust, the Trust, pursuant to the Grantor Trust Agreement, will (i) on the Closing Date, simultaneously contribute the Initial Transferred Property to the Grantor Trust in exchange for the Grantor Trust Certificate, and (ii) on each Subsequent Transfer Date, upon its acquisition of Subsequent Transferred Property, simultaneously therewith contribute such Subsequent Transferred Property to the Grantor Trust. Pursuant to the Indenture, the Trust shall grant a security interest in the Grantor Trust Certificate, among other assets, to secure the repayment of the Notes. The Residual Pass-through Certificates shall represent beneficial ownership interests in the Trust Property, and the Residual Certificateholders shall be entitled to receive distributions with respect thereto as set forth in Section 5.7(a)(xxiii5.7(a)(xxvi). As holder of 100% of the Grantor Trust Certificate, the Trust, pursuant to the Grantor Trust Agreement, has been authorized by the Grantor Trust to exercise the rights of the Grantor Trust as owner of the Transferred Property, including, without limitation, directing the disposition of the proceeds of the Receivables.