Common use of Payments of Net Interest Collections and Principal Collections Clause in Contracts

Payments of Net Interest Collections and Principal Collections. Pursuant to Section 3.1 of the Indenture, on each Payment Date, the Paying Agent, with respect to the Notes and the Ownership Interest, shall distribute out of the Collection Account, to the extent of the Available Payment Amount, the following amounts and in the following order of priority to the following Persons (in accordance with the information set forth in the Servicing Certificate): (i) to the Class [A-1] Notes and the Class [A-2] Notes, pro rata, the Current Interest plus the Interest Carry Forward Amount with respect to each such Class of Notes for such Payment Date; (ii) to the Class [M-1] Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-1] Notes for such Payment Date; (iii) to the Class [M-2] Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-2] Notes for such Payment Date; (iv) to the Class [A-1] Notes until the Note Principal Amount of the Class [A-1] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (v) to the Class [A-1] Notes, the Principal Carry Forward Amount with respect to the Class [A-1] Notes for such Payment Date; (vi) to the Class [A-1] Notes until the Note Principal Amount of the Class [A-1] Notes has been reduced to zero, [ ]% of the Additional Principal Reduction Amount for such Payment Date; (vii) to the Class [A-2] Notes until the Note Principal Amount of the Class [A-2] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (viii) to the Class [A-2] Notes, the Principal Carry Forward Amount with respect to the Class [A-2] Notes for such Payment Date; (ix) to the Class [A-2] Notes until the Note Principal Amount of the Class [A-2] Notes has been reduced to zero, [ ]% of the Additional Principal Reduction Amount for such Payment Date; (x) to the Class [M-1] Notes until the Note Principal Amount of the Class [M-1] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (xi) to the Class [M-1] Notes, the Principal Carry Forward Amount with respect to the Class [M-1] Notes for such Payment Date; (xii) to the Class [M-1] Notes until the Note Principal Amount of the Class [M-1] Notes has been reduced to zero, [ ]% of the Additional Principal Reduction Amount for such Payment Date; (xiii) to the Class [M-2] Notes until the Note Principal Amount of the Class [M-2] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (xiv) to the Class [M-2] Notes, the Principal Carry Forward Amount with respect to the Class [M-2] Notes for such Payment Date; (xv) to the Class [M-2] Notes until the Note Principal Amount of the Class [M-2] Notes has been reduced to zero, [ ]% of the Additional Principal Reduction Amount for such Payment Date; (xvi) concurrently, to the Class [A-1] Notes, Class [A-2] Notes, Class [M-1] Notes and Class [M-2] Notes until the Note Principal Amount of each such Class of Notes has been reduced to zero, [ ]%, [ ]%, [ ]% and [ ]% of the Extra Principal Payment Amount for such Payment Date, respectively; (xvii) to the Class [A-1] Notes, Class [A-2] Notes, Class [M-1] Notes and Class [M-2] Notes, pro rata based on unpaid Supplemental Interest Amounts, the outstanding Supplemental Interest Amount for such Class and for such Payment Date; (xviii) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay any judgment or settlement affecting the Trust; (xix) so long as HSBC Finance or one of its Affiliates is the Servicer, to the Servicer, all accrued and unpaid Servicing Fees for each Collection Period ending prior to the Collection Period ending on [ ]; and (xx) to the Transferor in respect of the Ownership Interest, any remaining Available Payment Amount; provided, however, that on any Payment Date after the earlier of (i) the date on which the first auction conducted by the Indenture Trustee, or an agent of the Indenture Trustee, pursuant to Section 8.01(c) does not produce any bid at least equal to the Termination Price or (ii) the [ ] Payment Date, any remaining amount available for payment pursuant to this Section 5.01(a)(xx) shall instead be paid concurrently, [ ]% to the Class [A-1] Notes, [ ]% to the Class [A-2] Notes, [ ]% to the Class [M-1] Notes and [ ]% to the Class [M-2] Notes, in reduction of the applicable Note Principal Amount of each Class; provided, that if the Indenture Trustee or the Administrator collects any money or property pursuant to Article V of the Indenture, the Indenture Trustee, the Administrator and the Paying Agent shall pay out the money or property as provided in Section 5.4(b) of the Indenture; provided, further, that to the extent the Note Principal Amount of any Class of Notes has been reduced to zero, then 100% of any applicable amounts described above will be paid to the Class of Notes with the immediately subordinate payment priority until the Note Principal Amount of such Class of Notes has been reduced to zero; and provided, further, that if on the Business Day immediately preceding any Payment Date the Servicer does not deposit funds into the Collection Account relating to amounts payable on that Payment Date pursuant to Section 5.01(a)[(xix)] through [(xx)] above, then on that Payment Date the Servicer shall, from payments and collections on the Home Equity Loans received by the Servicer during the related Collection Period and not deposited into the Collection Account, (i) pay to itself all amounts, if any, payable pursuant to Section 5.01(a)[(xix)] above and (ii) pay to the Transferor all amounts, if any, payable to the Transferor pursuant to Section 5.01(a)[(xx)] above.

Payments of Net Interest Collections and Principal Collections. Pursuant to Section 3.1 of the Indenture, on each Payment Date, the Paying Agent, with respect to the Notes and the Ownership Interest, shall distribute out of the Collection Account, to the extent of the Available Payment Amount, the following amounts and in the following order of priority to the following Persons (in accordance with the information set forth in the Servicing Certificate): (i) to the Class [A-1] A-1 Notes and the Class [A-2] A-2 Notes, pro rata, the Current Interest plus the Interest Carry Forward Amount with respect to each such Class of Notes for such Payment Date; (ii) to the Class [M-1] M-1 Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-1] M-1 Notes for such Payment Date; (iii) to the Class [M-2] M-2 Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-2] M-2 Notes for such Payment Date; (iv) to the Class [A-1] A-1 Notes until the Note Principal Amount of the Class [A-1] A-1 Notes has been reduced to zero, [ ]61.412546339% of the Principal Payment Amount for such Payment Date; (v) to the Class [A-1] A-1 Notes, the Principal Carry Forward Amount with respect to the Class [A-1] A-1 Notes for such Payment Date; (vi) to the Class [A-1] A-1 Notes until the Note Principal Amount of the Class [A-1] A-1 Notes has been reduced to zero, [ ]61.412546339% of the Additional Principal Reduction Amount for such Payment Date; (vii) to the Class [A-2] A-2 Notes until the Note Principal Amount of the Class [A-2] A-2 Notes has been reduced to zero, [ ]15.363728275% of the Principal Payment Amount for such Payment Date; (viii) to the Class [A-2] A-2 Notes, the Principal Carry Forward Amount with respect to the Class [A-2] A-2 Notes for such Payment Date; (ix) to the Class [A-2] A-2 Notes until the Note Principal Amount of the Class [A-2] A-2 Notes has been reduced to zero, [ ]15.363728275% of the Additional Principal Reduction Amount for such Payment Date; (x) to the Class [M-1] M-1 Notes until the Note Principal Amount of the Class [M-1] M-1 Notes has been reduced to zero, [ ]13.324346445% of the Principal Payment Amount for such Payment Date; (xi) to the Class [M-1] M-1 Notes, the Principal Carry Forward Amount with respect to the Class [M-1] M-1 Notes for such Payment Date; (xii) to the Class [M-1] M-1 Notes until the Note Principal Amount of the Class [M-1] M-1 Notes has been reduced to zero, [ ]13.324346445% of the Additional Principal Reduction Amount for such Payment Date; (xiii) to the Class [M-2] M-2 Notes until the Note Principal Amount of the Class [M-2] M-2 Notes has been reduced to zero, [ ]9.899378942% of the Principal Payment Amount for such Payment Date; (xiv) to the Class [M-2] M-2 Notes, the Principal Carry Forward Amount with respect to the Class [M-2] M-2 Notes for such Payment Date; (xv) to the Class [M-2] M-2 Notes until the Note Principal Amount of the Class [M-2] M-2 Notes has been reduced to zero, [ ]9.899378942% of the Additional Principal Reduction Amount for such Payment Date; (xvi) concurrently, to the Class [A-1] A-1 Notes, Class [A-2] A-2 Notes, Class [M-1] M-1 Notes and Class [M-2] M-2 Notes until the Note Principal Amount of each such Class of Notes has been reduced to zero, [ ]61.412546339%, [ ]15.363728275%, [ ]13.324346445% and [ ]9.899378942% of the Extra Principal Payment Amount for such Payment Date, respectively; (xvii) to the Class [A-1] A-1 Notes, Class [A-2] A-2 Notes, Class [M-1] M-1 Notes and Class [M-2] M-2 Notes, pro rata based on unpaid Supplemental Interest Amounts, the outstanding Supplemental Interest Amount for such Class and for such Payment Date; (xviii) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay any judgment or settlement affecting the Trust; (xix) so long as HSBC Finance or one of its Affiliates is the Servicer, to the Servicer, all accrued and unpaid Servicing Fees for each Collection Period ending prior to the Collection Period ending on [ ]May 31, 2007; and (xx) to the Transferor in respect of the Ownership Interest, any remaining Available Payment Amount; provided, however, that on any Payment Date after the earlier of (i) the date on which the first auction conducted by the Indenture Trustee, or an agent of the Indenture Trustee, pursuant to Section 8.01(c) does not produce any bid at least equal to the Termination Price or (ii) the [ ] June 2016 Payment Date, any remaining amount available for payment pursuant to this Section 5.01(a)(xx) shall instead be paid concurrently, [ ]61.412546339% to the Class [A-1] A-1 Notes, [ ]15.363728275% to the Class [A-2] A-2 Notes, [ ]13.324346445% to the Class [M-1] M-1 Notes and [ ]9.899378942% to the Class [M-2] M-2 Notes, in reduction of the applicable Note Principal Amount of each Class; provided, that if the Indenture Trustee or the Administrator collects any money or property pursuant to Article V of the Indenture, the Indenture Trustee, the Administrator and the Paying Agent shall pay out the money or property as provided in Section 5.4(b) of the Indenture; provided, further, that to the extent the Note Principal Amount of any Class of Notes has been reduced to zero, then 100% of any applicable amounts described above will be paid to the Class of Notes with the immediately subordinate payment priority until the Note Principal Amount of such Class of Notes has been reduced to zero; and provided, further, that if on the Business Day immediately preceding any Payment Date the Servicer does not deposit funds into the Collection Account relating to amounts payable on that Payment Date pursuant to Section 5.01(a)[(xix)] 5.01(a)(xix) through [(xx)] ) above, then on that Payment Date the Servicer shall, from payments and collections on the Home Equity Loans received by the Servicer during the related Collection Period and not deposited into the Collection Account, (i) pay to itself all amounts, if any, payable pursuant to Section 5.01(a)[(xix)] 5.01(a)(xix) above and (ii) pay to the Transferor all amounts, if any, payable to the Transferor pursuant to Section 5.01(a)[(xx)] 5.01(a)(xx) above.

Payments of Net Interest Collections and Principal Collections. Pursuant to Section 3.1 of the Indenture, on each Payment Date, the Paying Agent, with respect to the Notes and the Ownership Interest, shall distribute out of will pay amounts on deposit in the Collection Account, to the extent of the Available Payment Amount, in the following amounts and in the following order of priority to the following Persons (in accordance with based on the information set forth in the Servicing CertificateCertificates): (i) to the Class [A-1] Notes and the Class [A-2] Notes, pro rata, the Current Interest plus the Interest Carry Forward Amount with respect to each such Class of Notes for such Payment Date; (ii) to the Class [M-1] A Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-1] Notes for such Payment DateA Notes; (iiiii) to the Class [M-2] M Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-2] M Notes; (iii) to the Class A Notes for until the Note Principal Amount of such Class A Notes has been reduced to zero, the Class A Pro-Rata Percentage of the Principal Payment DateAmount; (iv) to the Class [A-1] Notes until the Note Principal Amount of the Class [A-1] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (v) to the Class [A-1] A Notes, the Principal Carry Forward Amount with respect to the Class [A-1] A Notes; (v) to the Class A Notes for until the Note Principal Amount of such Payment DateClass A Notes has been reduced to zero, the Class A Pro-Rata Percentage of the Additional Principal Reduction Amount; (vi) to the Class [A-1] M Notes until the Note Principal Amount of the such Class [A-1] M Notes has been reduced to zero, [ ]% the Class M Pro-Rata Percentage of the Additional Principal Reduction Amount for such Payment DateAmount; (vii) to the Class [A-2] Notes until the Note Principal Amount of the Class [A-2] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (viii) to the Class [A-2] M Notes, the Principal Carry Forward Amount with respect to the Class [A-2] Notes for such Payment DateM Notes; (ixviii) to the Class [A-2] M Notes until the Note Principal Amount of the such Class [A-2] M Notes has been reduced to zero, [ ]% the Class M Pro-Rata Percentage of the Additional Principal Reduction Amount for such Payment DateAmount; (x) to the Class [M-1] Notes until the Note Principal Amount of the Class [M-1] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (xi) to the Class [M-1] Notes, the Principal Carry Forward Amount with respect to the Class [M-1] Notes for such Payment Date; (xii) to the Class [M-1] Notes until the Note Principal Amount of the Class [M-1] Notes has been reduced to zero, [ ]% of the Additional Principal Reduction Amount for such Payment Date; (xiii) to the Class [M-2] Notes until the Note Principal Amount of the Class [M-2] Notes has been reduced to zero, [ ]% of the Principal Payment Amount for such Payment Date; (xiv) to the Class [M-2] Notes, the Principal Carry Forward Amount with respect to the Class [M-2] Notes for such Payment Date; (xv) to the Class [M-2] Notes until the Note Principal Amount of the Class [M-2] Notes has been reduced to zero, [ ]% of the Additional Principal Reduction Amount for such Payment Date; (xviix) concurrently, to the Class [A-1] Notes, Class [A-2] Notes, Class [M-1] A Notes and to the Class [M-2] M Notes until the Note Principal Amount of each such Class of A and Class M Notes has been reduced to zero, [ ]%, [ ]%, [ ]% and [ ]% the Class A Pro-Rata Percentage of the Extra Principal Payment Amount for such to the Class A Notes and the Class M Pro-Rata Percentage of the Extra Principal Payment Date, respectivelyAmount to the Class M Notes; (xviix) to the Class [A-1] Notes, Class [A-2] Notes, Class [M-1] Notes A and Class [M-2] M Notes, pro rata based on unpaid rata, according to the outstanding Class A Supplemental Interest AmountsAmount and Class M Supplemental Interest Amount, the outstanding Class A Supplemental Interest Amount for such and the outstanding Class and for such Payment DateM Supplemental Interest Amount; (xviiixi) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay any judgment or settlement affecting the Trust; (xix) so long as HSBC Finance or one of its Affiliates is the Servicer, to the Servicer, all accrued and unpaid Servicing Fees for each Collection Period ending prior to the Collection Period ending on [ ]; and (xxxii) to the Transferor Ownership Interest in respect of the Ownership InterestTrust, any remaining Available Payment Amount; provided, however, that on any Payment Date after the earlier of (i) the date on which the first auction conducted by the Indenture Trustee, or an agent of the Indenture Trustee, Trustee pursuant to Section 8.01(c) does not produce any bid at least equal to the Termination Repurchase Price or (ii) the [ ] August 2014 Payment Date, any remaining amount available for payment pursuant to this Section 5.01(a)(xx5.01(a)(xii) shall instead be paid concurrently, [ ]% the Class A Pro-Rata Percentage to the Class [A-1] Notes, [ ]% A Notes and the Class M Pro-Rata Percentage to the Class [A-2] Notes, [ ]% to the Class [M-1] Notes and [ ]% to the Class [M-2] M Notes, in reduction of the applicable Note Principal Amount of each Class; . provided, that if the Indenture Trustee or the Administrator collects any money or property pursuant to Article V of the Indenture, the Indenture Trustee, the Administrator and the Paying Agent shall pay out the money or property as provided in Section 5.4(b) of the Indenture; and provided, further, that to the extent the Note Principal Amount of any the Class of A Notes has been reduced to zero, then 100% of any applicable amounts described above will be paid to the Class of M Notes with the immediately subordinate payment priority until the Note Principal Amount of such the Class of M Notes has been reduced to zero; and provided, further, that if on the Business Day immediately preceding any Payment Date the Servicer does not deposit funds into the Collection Account relating to amounts payable on that Payment Date pursuant to Section 5.01(a)[(xix)] through [(xx)] above, then on that Payment Date the Servicer shall, from payments and collections on the Home Equity Loans received by the Servicer during the related Collection Period and not deposited into the Collection Account, (i) pay to itself all amounts, if any, payable pursuant to Section 5.01(a)[(xix)] above and (ii) pay to the Transferor all amounts, if any, payable to the Transferor pursuant to Section 5.01(a)[(xx)] above.

Payments of Net Interest Collections and Principal Collections. Pursuant to Section 3.1 of the Indenture, on each Payment Date, the Paying Agent, with respect to the Notes and the Ownership Interest, shall distribute out of the Collection Account, to the extent of the Available Payment Amount, the following amounts and in the following order of priority to the following Persons (in accordance with the information set forth in the Servicing Certificate): (i) to the Class [A-1] A-1 Notes and the Class [A-2] A-2 Notes, pro rata, the Current Interest plus the Interest Carry Forward Amount with respect to each such Class of Notes for such Payment Date; (ii) to the Class [M-1] M-1 Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-1] M-1 Notes for such Payment Date; (iii) to the Class [M-2] M-2 Notes, the Current Interest plus the Interest Carry Forward Amount with respect to the Class [M-2] M-2 Notes for such Payment Date; (iv) to the Class [A-1] A-1 Notes until the Note Principal Amount of the Class [A-1] A-1 Notes has been reduced to zero, [ ]61.773772824% of the Principal Payment Amount for such Payment Date; (v) to the Class [A-1] A-1 Notes, the Principal Carry Forward Amount with respect to the Class [A-1] A-1 Notes for such Payment Date; (vi) to the Class [A-1] A-1 Notes until the Note Principal Amount of the Class [A-1] A-1 Notes has been reduced to zero, [ ]61.773772824% of the Additional Principal Reduction Amount for such Payment Date; (vii) to the Class [A-2] A-2 Notes until the Note Principal Amount of the Class [A-2] A-2 Notes has been reduced to zero, [ ]15.445419334% of the Principal Payment Amount for such Payment Date; (viii) to the Class [A-2] A-2 Notes, the Principal Carry Forward Amount with respect to the Class [A-2] A-2 Notes for such Payment Date; (ix) to the Class [A-2] A-2 Notes until the Note Principal Amount of the Class [A-2] A-2 Notes has been reduced to zero, [ ]15.445419334% of the Additional Principal Reduction Amount for such Payment Date; (x) to the Class [M-1] M-1 Notes until the Note Principal Amount of the Class [M-1] M-1 Notes has been reduced to zero, [ ]11.390403921% of the Principal Payment Amount for such Payment Date; (xi) to the Class [M-1] M-1 Notes, the Principal Carry Forward Amount with respect to the Class [M-1] M-1 Notes for such Payment Date; (xii) to the Class [M-1] M-1 Notes until the Note Principal Amount of the Class [M-1] M-1 Notes has been reduced to zero, [ ]11.390403921% of the Additional Principal Reduction Amount for such Payment Date; (xiii) to the Class [M-2] M-2 Notes until the Note Principal Amount of the Class [M-2] M-2 Notes has been reduced to zero, [ ]11.390403921% of the Principal Payment Amount for such Payment Date; (xiv) to the Class [M-2] M-2 Notes, the Principal Carry Forward Amount with respect to the Class [M-2] M-2 Notes for such Payment Date; (xv) to the Class [M-2] M-2 Notes until the Note Principal Amount of the Class [M-2] M-2 Notes has been reduced to zero, [ ]11.390403921% of the Additional Principal Reduction Amount for such Payment Date; (xvi) concurrently, to the Class [A-1] A-1 Notes, Class [A-2] A-2 Notes, Class [M-1] M-1 Notes and Class [M-2] M-2 Notes until the Note Principal Amount of each such Class of Notes has been reduced to zero, [ ]61.773772824%, [ ]15.445419334%, [ ]11.390403921% and [ ]11.390403921% of the Extra Principal Payment Amount for such Payment Date, respectively; (xvii) to the Class [A-1] A-1 Notes, Class [A-2] A-2 Notes, Class [M-1] M-1 Notes and Class [M-2] M-2 Notes, pro rata based on unpaid Supplemental Interest Amounts, the outstanding Supplemental Interest Amount for such Class and for such Payment Date; (xviii) to the Owner Trustee on behalf of the Trust, an amount sufficient to pay any judgment or settlement affecting the Trust; (xix) so long as HSBC Finance or one of its Affiliates is the Servicer, to the Servicer, all accrued and unpaid Servicing Fees for each Collection Period ending prior to the Collection Period ending on [ ]June 30, 2007; and (xx) to the Transferor in respect of the Ownership Interest, any remaining Available Payment Amount; provided, however, that on any Payment Date after the earlier of (i) the date on which the first auction conducted by the Indenture Trustee, or an agent of the Indenture Trustee, pursuant to Section 8.01(c) does not produce any bid at least equal to the Termination Price or (ii) the [ ] August 2016 Payment Date, any remaining amount available for payment pursuant to this Section 5.01(a)(xx) shall instead be paid concurrently, [ ]61.773772824% to the Class [A-1] A-1 Notes, [ ]15.445419334% to the Class [A-2] A-2 Notes, [ ]11.390403921% to the Class [M-1] M-1 Notes and [ ]11.390403921% to the Class [M-2] M-2 Notes, in reduction of the applicable Note Principal Amount of each Class; provided, that if the Indenture Trustee or the Administrator collects any money or property pursuant to Article V of the Indenture, the Indenture Trustee, the Administrator and the Paying Agent shall pay out the money or property as provided in Section 5.4(b) of the Indenture; provided, further, that to the extent the Note Principal Amount of any Class of Notes has been reduced to zero, then 100% of any applicable amounts described above will be paid to the Class of Notes with the immediately subordinate payment priority until the Note Principal Amount of such Class of Notes has been reduced to zero; and provided, further, that if on the Business Day immediately preceding any Payment Date the Servicer does not deposit funds into the Collection Account relating to amounts payable on that Payment Date pursuant to Section 5.01(a)[(xix)] 5.01(a)(xix) through [(xx)] ) above, then on that Payment Date the Servicer shall, from payments and collections on the Home Equity Loans received by the Servicer during the related Collection Period and not deposited into the Collection Account, (i) pay to itself all amounts, if any, payable pursuant to Section 5.01(a)[(xix)] 5.01(a)(xix) above and (ii) pay to the Transferor all amounts, if any, payable to the Transferor pursuant to Section 5.01(a)[(xx)] 5.01(a)(xx) above.