Common use of Limitation on Voting of Preferred Stock Clause in Contracts

Limitation on Voting of Preferred Stock. The Trustee shall hold all of the preferred stock ("Preferred Stock") of the Depositor in trust, for the benefit of the Certificateholders, and, during the continuance of an Event of Default, shall vote such stock only pursuant to the written instructions of Holders of Certificates evidencing not less than 51% of the aggregate Percentage Interests of the Class A and Class M Certificates. The Trustee shall not permit a transfer of any of the Preferred Stock to HFC or any of its Affiliates. Concurrently with any retransfer of the Home Equity Loans to the Master Servicer pursuant to Section 10.01, the Trustee shall transfer to the Depositor for cancellation all shares of Preferred Stock held by the Trustee.

Limitation on Voting of Preferred Stock. The Trustee shall hold all of the preferred stock ("“Preferred Stock"”) of the Depositor in trust, for the benefit of the CertificateholdersCertificateholders [and the Certificate Insurer], and, during the continuance of an Event of Defaulta Servicer Termination Event, shall vote such stock only pursuant to the written instructions of [the Certificate Insurer and] Holders of Certificates evidencing not less than 51% of the aggregate Percentage Interests of the Class A and Class M CertificatesVoting Rights. The Trustee shall not permit a transfer of any of the Preferred Stock to HFC HSBC Finance or any of its Affiliates. Concurrently with any retransfer of the Home Equity Loans to the Master Servicer pursuant to Section 10.01, the Trustee shall transfer to the Depositor for cancellation all shares of Preferred Stock held by the Trustee.