Principal Payments on Collateral Clause Samples
Principal Payments on Collateral. The proceeds of any payments for maturing obligations, of any redemptions of securities, or of any principal payments made on Collateral, except prepayment of principal on mortgage-backed securities, shall be invested as instructed orally or in writing by Member; and if Member fails to provide such instructions, Member authorizes the Bank to hold such proceeds as bailee for Depositor.
Principal Payments on Collateral. On the date of maturity of any Collateral (whether at stated maturity, upon acceleration, redemption or otherwise), the Equity Contract Agent shall retain all proceeds received thereon in cash subject to the security interest and pledge granted in the Collateral Agreement to the Equity Contract Agent on behalf of the Corporation (other than payments of interest which the Equity Contract Agent is obligated to pay over to an Obligor to the extent provided in Section 7.02). In the case of Collateral consisting of any obligation, if the aggregate amount of payments of principal thereof (whether upon maturity, acceleration, redemption or otherwise) received by the Equity Contract Agent shall be less than the value thereof (determined as provided in Section 7.01), the Equity Contract Agent shall notify the Obligor of such deficiency and the Obligor shall furnish additional Collateral having a value equal to such deficiency.