Money for Bond Payments to Be Held in Trust. Whenever the Issuer shall have one or more Paying Agents, the Trustee will, on each Payment Date or Redemption Date, withdraw from the Collateral Proceeds Account and deposit with such Paying Agent cash in an amount sufficient to pay principal of or interest on the Bonds with respect to the related Interest Accrual Period, such sum to be held in trust for the benefit of the Persons entitled to such principal or interest, and (unless such Paying Agent is the Trustee) the Issuer will promptly notify the Trustee of its action or failure to so act. The initial Paying Agent shall be the Trustee. Any additional or successor Paying Agent shall be appointed by Issuer Order. The Issuer shall not appoint any Paying Agent that is not, at the time of such appointment, a depository institution or trust company incorporated under the laws of the United States of America or any state thereof and subject to supervision and examination by federal or state banking authorities. The Issuer will cause each Paying Agent, other than the Trustee, to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:
Appears in 3 contracts
Samples: Indenture (National Collegiate Trust 1996-S2), Custodial Agreement (National Collegiate Trust 1996-S2), Custodial Agreement (National Collegiate Trust 1996-S2)
Money for Bond Payments to Be Held in Trust. Whenever the Issuer shall have one or more Paying Agents, the Trustee will, on each Payment Date or Redemption Date, withdraw from the Collateral Proceeds Account and, if applicable, the Reserve Fund and deposit with such Paying Agent cash in an amount sufficient to pay principal of or interest on the Bonds with respect to the related Interest Accrual Period, such sum to be held in trust for the benefit of the Persons entitled to such principal or interest, and (unless such Paying Agent is the Trustee) the Issuer will promptly notify the Bond Insurer and the Trustee of its action or failure to so act. The initial Paying Agent shall be the Trustee. Any additional or successor Paying Agent shall be appointed by Issuer Order. The Issuer shall not appoint any Paying Agent that is not, at the time of such appointment, a depository institution or trust company incorporated under the laws of the United States of America or any state thereof and subject to supervision and examination by federal or state banking authorities. The Issuer will cause each Paying Agent, other than the Trustee, to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:
Appears in 1 contract
Samples: Administration Agreement (National Collegiate Trust 1997-S2)
