Prepayment Fund Clause Samples

The Prepayment Fund clause establishes a dedicated account or reserve where prepayments made by a borrower are held. Typically, this clause outlines the conditions under which prepayments—such as early payments of principal or interest—are deposited into the fund, how these funds are managed, and the circumstances under which they may be applied to outstanding obligations or returned to the borrower. Its core practical function is to ensure that prepayments are properly tracked and allocated, thereby providing transparency and protecting the interests of both the lender and the borrower.
Prepayment Fund. The Trustee, on the prepayment date specified in the Written Request of the City filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Sublease, shall deposit in the account established in the Prepayment Fund with respect to the Series of Certificates to be prepaid that amount of moneys evidencing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Moneys in such account within the Prepayment Fund shall be used and withdrawn by the Trustee for the purpose of paying the interest, premium, if any, and principal evidenced by such Certificates to be prepaid.
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Prepayment Fund. The Trustee, on the prepayment date specified in the Written Request of the County filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Lease Agreement, shall deposit in the Prepayment Fund that amount of moneys representing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Additionally, the Trustee shall deposit in the Prepayment Fund any amounts required to be deposited therein pursuant to Section 6.01 or Section 6.02 hereof. Moneys in the Prepayment Fund shall be used by the Trustee for the purpose of paying the interest, premium, if any, and principal evidenced by the Certificates to be prepaid.
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Prepayment Fund. (a) The Paying Agent will deposit in the Prepayment Fund the amount specified in Section 5. (b) Investment earnings on moneys held in the Prepayment Fund, if any, will be deposited into the Prepayment Fund and then transferred to the Debt Service Fund pursuant to Section 6.
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Prepayment Fund. The Trustee, on the prepayment date specified in the Written Request of the District filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Lease Agreement, shall deposit in the Prepayment Fund that amount of moneys representing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Additionally, the Trustee shall deposit in the Prepayment Fund any amounts required to be deposited therein pursuant to Section 3.04, Section 5.03 or Section 5.04 hereof. Moneys in the Prepayment Fund shall be used by the Trustee for the purpose of paying the interest, premium, if any, and principal evidenced by the Certificates to be prepaid. All moneys held by the Trustee in the Prepayment Fund shall either be held uninvested or invested in Defeasance Securities, which mature in sufficient amounts and on the dates needed to make the prepayments of Certificates for which such moneys were deposited.
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Prepayment Fund. (i) There shall be deposited in the Prepayment Fund (a) all payments specified in Section 8.3 of the Borrower Loan Agreement to be deposited in the Prepayment Fund, and (b) all other moneys received by the Fiscal Agent under the Borrower Loan Agreement or this Funding Loan Agreement for deposit by it in the Prepayment Fund. Moneys in the Prepayment Fund shall be held in trust for the Noteowner and, except as otherwise expressly provided herein, shall be used solely for the prepayment of the Borrower Note and the Governmental Note pursuant to the provisions thereof. On each Principal Payment Date or prepayment date and as otherwise required hereunder or at the written direction of the Funding Lender, the Fiscal Agent shall transfer such amounts from the Prepayment Fund to the Funding Loan Fund and used to prepay the Borrower Note and the Governmental Note pursuant to the provisions thereof. After payment in full of the Borrower Note and the payment of any amounts owing to the United States pursuant to any rebate requirement and any other amounts owing hereunder, any amounts remaining in the Prepayment Fund shall be paid to the Borrower. (ii) Upon the occurrence and continuation of an Event of Default hereunder, all money and investments in the Prepayment Fund may be disbursed at the written direction of the Funding Lender to pay any costs and expenses of the Project, to pay costs of enforcement of the Funding Loan Documents and to pay any and all amounts owed by the Borrower under any of the Funding Loan Documents, in whatever amounts and in whatever order the Funding Lender may determine.
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Prepayment Fund. Moneys to be used for prepayment pursuant to Section 4.1 hereof and paid by the District pursuant to Section 7.1 of the Installment Purchase Agreement shall be transferred by the Trustee from the Certificate Payment Fund and deposited in the Prepayment Fund on the prepayment date specified in the Written Request of the District filed with the Trustee pursuant to Section 7.2 of the Installment Purchase Agreement. Said moneys shall be set aside in the Prepayment Fund solely for the purpose of prepaying the Certificates in advance of their respective stated maturities and shall be applied on or after the date specified for prepayment pursuant to Section 4.1 hereof to the payment of the Prepayment Price with respect to the Certificates to be prepaid upon presentation and surrender of such Certificates.
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Prepayment Fund. The Trustee, on the prepayment date specified in the Written Request of the County filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Facilities Lease, shall deposit in the Prepayment Fund that amount of moneys representing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Moneys in the Prepayment Fund shall be used and withdrawn by the Trustee solely for the purpose of paying the interest and principal and any applicable premium represented by the Certificates to be prepaid.
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Related to Prepayment Fund

  • Prepayment (a) Provided no Event of Default has occurred and is continuing, Borrower may voluntarily prepay the Indebtedness in full and not in part (i) only on or prior to the day that is two (2) years after the Start-Up Day, and such prepayment shall be subject to payment of Prepayment Premium, and (ii) only on or after the date which is sixty (60) days prior to the Maturity Date and there shall be no Prepayment Premium or penalty assessed against Borrower by reason of such prepayment; provided, however, that Borrower shall give to Lender at least fifteen (15) days prior written notice of any such prepayment. Any prepayment of the Loan shall be made on a Payment Date, and if any such prepayment is not made on a Payment Date, Borrower shall also pay to Lender interest calculated at the Interest Rate that would have accrued on such prepaid Principal Indebtedness through the end of the Interest Accrual Period in which such prepayment occurs. Notwithstanding the foregoing, Permitted Transfers, defeasance in accordance with Section 2.10 and Property Substitutions in accordance with Section 2.14 are not prepayments. (b) Subject to Section 8.40, at any time during the term of the Loan, if any Borrower is required by Lender under the provisions of any Mortgage to prepay the Loan or any portion thereof in the event of damage to or destruction of, or a Taking of any Individual Property, such Borrower shall pay any Insurance Proceeds or Condemnation proceeds in the following manner and order of priority (i) first, to prepay the Loan to the full extent of the Insurance Proceeds or the Condemnation Proceeds, as applicable, to the extent of the Allocated Loan Amount for the applicable Individual Property, and (ii) to the Borrowers. (c) All prepayments of the Indebtedness made pursuant to this Section shall be applied by Lender in accordance with the provisions of Section 2.7 hereof. (d) No Borrower shall be permitted at any time to prepay all or any part of the Loan except as expressly provided in this Section.