Common use of Mandatory Replacement Account Clause in Contracts

Mandatory Replacement Account. (a) Issuer will direct the Manager or Administrator to cause the deposit of all the Net Disposition Proceeds realized from a Permitted Discretionary Sale, whether or not initially deposited in the Collections Account, into the Mandatory Replacement Account. (b) Issuer shall use all commercially reasonable efforts to use the funds deposited in the Mandatory Replacement Account to purchase Additional Railcars from Sellers in Permitted Railcar Acquisitions during the applicable Replacement Periods with respect to the Disposition Proceeds constituting such funds. The Indenture Trustee, at the written direction of the Manager accompanied by a written statement of the Manager that all of the conditions for payment of the Purchase Price for such Additional Railcar specified in the Asset Transfer Agreement have been satisfied and that the applicable requirements of Section 5.03 have been satisfied, will transfer funds in an amount equal to the Purchase Price for such Additional Railcar to the applicable Seller. (c) The Indenture Trustee, without further direction from the Manager or the Administrator, shall transfer any amounts in the Mandatory Replacement Account at the end of the Replacement Period applicable to the Permitted Discretionary Sale to the Collections Account on the next Business Day after the end of such Replacement Period. All amounts so transferred to the Collections Account may not be withdrawn therefrom pursuant to Section 3.11(a) or otherwise, except for distribution in accordance with the Flow of Funds.

Mandatory Replacement Account. (a) The Issuer will direct the Manager or Administrator to cause the deposit of all the Net Disposition Proceeds realized from a Permitted Discretionary Sale, whether or not initially deposited in into the Collections Account, into the Mandatory Replacement Account. (b) The Issuer shall use all commercially reasonable efforts to use the funds deposited in the Mandatory Replacement Account to purchase Additional Railcars from Sellers in Permitted Railcar Acquisitions during the applicable Replacement Periods with respect to the Net Disposition Proceeds constituting such funds. The Indenture Trustee, at the written direction of the Manager or Administrator accompanied by a written statement of the Manager or Administrator on behalf of the Issuer that all of the conditions for payment of the Purchase Price for such Additional Railcar specified in the Asset Transfer Agreement have been satisfied and that the applicable requirements of Section 5.03 have been satisfied, will transfer funds in an amount equal to the Purchase Price for such Additional Railcar to the applicable Seller. (c) The Indenture Trustee, without further direction from the Manager or the Administrator, shall transfer any amounts in the Mandatory Replacement Account at the end of the Replacement Period applicable to the Permitted Discretionary Sale to the Collections Account on the next Business Day after the end of such Replacement Period. All amounts so transferred to the Collections Account may not be withdrawn therefrom pursuant to Section 3.11(a3.09(a) or otherwise, except for distribution in accordance with the Flow of Funds.

Mandatory Replacement Account. (a) The Issuer will direct the Manager or Administrator to cause the deposit of all the Net Disposition Proceeds realized from a Permitted Discretionary Sale, whether or not initially deposited in into the Collections Account, into the Mandatory Replacement Account. (b) The Issuer shall use all commercially reasonable efforts to use the funds deposited in the Mandatory Replacement Account to purchase Additional Railcars from Sellers in Permitted Railcar Acquisitions during the applicable Replacement Periods with respect to the Net Disposition Proceeds constituting such funds. The Indenture Trustee, at the written direction of the Manager or Administrator accompanied by a written statement of the Manager or Administrator on behalf of the Issuer that all of the conditions for payment of the Purchase Price for such Additional Railcar specified in the Asset Transfer Agreement have been satisfied and that the applicable requirements of Section 5.03 have been satisfied, will transfer funds in an amount equal to the Purchase Price for such Additional Railcar to the applicable Seller. (c) The Indenture Trustee, without further direction from the Manager or the Administrator, shall transfer any amounts in the Mandatory Replacement Account at the end of the Replacement Period applicable to the Permitted Discretionary Sale to the Collections Account on the next Business Day after the end of such Replacement Period. All amounts so transferred to the Collections Account may not be withdrawn therefrom pursuant to Section 3.11(a3.09(a) or otherwise, except for distribution in accordance with the Flow of Funds. The Issuer shall owe a Redemption Premium to the Noteholders in respect of any resulting repayment of principal on the Equipment Notes if such resulting repayment occurs prior to the fifteenth anniversary of the Closing Date.

Mandatory Replacement Account. (a) The Issuer will direct the Manager Servicer or Administrator to cause the deposit of all the Net Disposition Proceeds realized from a Permitted Discretionary Sale, whether or not initially deposited in the Collections Account, Sale into the Mandatory Replacement AccountAccount (or immediately to be applied toward the acquisition of Qualifying Replacement Railcars in Replacement Exchanges to the extent such sale and acquisition occurs simultaneously). (b) The Issuer shall use all commercially reasonable efforts to use the funds deposited in the Mandatory Replacement Account to purchase Additional Railcars from Sellers in Permitted Railcar Acquisitions during the applicable Replacement Periods with respect to the Net Disposition Proceeds constituting such funds. The Indenture Trustee, at the written direction of the Manager Servicer or Administrator accompanied by a written statement of the Manager that all Servicer or Administrator on behalf of the conditions for payment of the Purchase Price for such Additional Railcar specified in the Asset Transfer Agreement have been satisfied and Issuer that the applicable requirements of Section 5.03 have been satisfied, will transfer funds in an amount equal to the Purchase Price for such Additional Railcar to the applicable Seller. (c) The Indenture Trustee, without further at the written direction from the Manager Servicer or the Administrator, shall transfer any amounts in the Mandatory Replacement Account at the end of the Replacement Period applicable to the Permitted Discretionary Sale to the Collections Account on the next Business Day after the end of such Replacement Period. All amounts so transferred to the Collections Account may not be withdrawn therefrom pursuant to Section 3.11(a) or otherwise, except for distribution in accordance with the Flow of Fundsas contemplated by Section 3.14.