Principal Release Amount. (i) If a Rapid Amortization Event or an Event of Default is continuing, the Principal Release Amount shall remain on deposit in the Senior Notes Principal Payment Accounts and shall be applied in the order set forth in Section 5.12(h)(i) for amounts allocated to the Senior Notes Principal Payment Accounts.
(ii) If (x) no Rapid Amortization Event or Event of Default is continuing and (y) if any Class A-1 Notes Renewal Date has occurred and the related Class A-1 Notes have been paid, extended or otherwise refinanced in full, on each Quarterly Calculation Date, each Co-Issuer (or the applicable Manager on its behalf) shall instruct the Trustee in writing to withdraw on such Quarterly Payment Date the Principal Release Amount from such Co-Issuer’s Senior Notes Principal Payment Account and apply such funds on such Quarterly Payment Date to the extent necessary to pay, in the following order of priority (and any Shortfall Payments in respect thereof shall be paid in accordance with the Allocation Agreement), (A) to the Trustee, unreimbursed Advances (with interest thereon at the Advance Interest Rate), (B) to the Servicer, unreimbursed Advances (with interest thereon at the Advance Interest Rate), (C) unreimbursed Manager Advances (with interest thereon at the Advance Interest Rate), (D) pro rata, Senior Notes Quarterly Interest Amounts and Class A-1 Notes Commitment Fees Amounts and (E) Senior Subordinated Notes Quarterly Interest Amounts, in each case, after giving effect to other amounts available for payment thereof as described in this Section 5.12. Such Co-Issuer (or the applicable Manager on its behalf) shall instruct the Trustee in writing to distribute the remainder of the Principal Release Amount, if any, in the priority set forth in the Priority of Payments, beginning at priority (xii) thereof.
(iii) If no Rapid Amortization Period or Event of Default is continuing, but a Class A-1 Notes Renewal Date has occurred and the related Class A-1 Notes have not been paid, extended or otherwise refinanced in full, each Co-Issuer (or the applicable Manager on its behalf) shall instruct the Trustee in writing to withdraw on such Quarterly Payment Date the Principal Release Amount from such Co-Issuer’s Senior Notes Principal Payment Account to the extent necessary to pay such Co-Issuer’s Allocable Share of the Outstanding Principal Amount of the Class A-1 Notes, and deposit such funds into the applicable Series Distribution Account for distribution to the holder...
