Common use of Income and Escrow Accounts Clause in Contracts

Income and Escrow Accounts. Prior to the initial Transaction hereunder the Seller shall establish the Income Account and the Escrow Account and shall cause the bank holding such accounts to enter into a control agreement with the Administrative Agent providing that upon notice from the Administrative Agent no further withdrawals or payment orders from the Seller shall be honored and only payment and withdrawal orders from the Administrative Agent or its designee shall be honored. Prior to the occurrence of a Default or Event of Default and so long as Seller is also the Servicer, Seller shall make payments from the Escrow Account of all appropriate amounts payable with respect to each Purchased Loan for taxes, insurance and other purposes for which the funds are paid into the Escrow Account. Subject to Section 8.3, amounts on deposit in the Income Account shall be used by the Seller to pay its fees as Servicer while it serves in such capacity, and may be used to pay to the Administrative Agent amounts due under this Agreement for Margin Deficit or Price Differential and for any other lawful purpose.

Income and Escrow Accounts. Prior to the initial Transaction hereunder the Seller shall establish the Income Account and the Escrow Account and shall cause the bank holding such accounts to enter into a control agreement with the Administrative Agent providing that upon notice from the Administrative Agent no further withdrawals or payment orders from the Seller shall be honored and only payment and withdrawal orders from the Administrative Agent or its designee shall be honored. Prior to the occurrence of a Default or Event of Default and so long as Seller is also the Servicer, Seller shall make payments from the Escrow Account of all appropriate amounts payable with respect to each Purchased Loan for taxes, insurance and other purposes for which the funds are paid into the Escrow Account. Subject to Section 8.3, amounts on deposit in the Income Account shall be used by the Seller to pay its fees as Servicer while it serves in such capacity, and may be used to pay to the Administrative Agent (for Pro Rata distribution to Buyers) amounts due under this Agreement for Margin Deficit or Price Differential and for any other lawful purpose.