Common use of Option to Contribute Derivative Instrument Clause in Contracts

Option to Contribute Derivative Instrument. (a) At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or comparable instrument (a “Derivative Instrument”). The derivative may have a notional amount in excess of the sum of the beneficial interests in the trusts. Any such instrument shall constitute a fully prepaid agreement. All collections, proceeds and other amounts received by the Trust Administrator in respect of such instrument shall be distributed to the Class X Certificates on the Distribution Date following receipt thereof. In no event shall such an instrument constitute a part of any REMIC created hereunder. In addition, in the event any such instrument is deposited, the Trust shall be deemed to be divided into two separate and discrete sub-trusts. The assets of one such sub-trust shall consist of all the assets of the Trust other than the Derivative Instrument and the assets of the other sub-trust shall consist solely of such instrument. The Trust Administrator shall have no tax reporting duties with respect to any such Derivative Instrument or any related Sub-trust.

Option to Contribute Derivative Instrument. (a) At any time on or after the Closing Date, the Seller shall have the right to contribute to, and deposit into, the Trust a derivative contract or comparable instrument (a “Derivative Instrument”). The derivative may have a notional amount in excess of the sum of the beneficial interests in the trustsTrust. Any such instrument shall constitute a fully prepaid agreement. All collections, proceeds and other amounts received by the Trust Administrator in respect of such instrument shall be distributed to the Class X Holder of the Residual Certificates on the Distribution Date following receipt thereof. In no event shall such an instrument constitute a part of any REMIC created hereunder. In addition, in the event any such instrument is deposited, the Trust shall be deemed to be divided into two separate and discrete sub-trusts. The assets of one such sub-trust shall consist of all the assets of the Trust other than the Derivative Instrument and the assets of the other sub-trust shall consist solely of such instrument. The Trust Administrator shall have no tax reporting duties with respect to any such No Derivative Instrument or shall be an asset of any related Sub-trustREMIC formed hereby.