Redemption In Whole Clause Samples
The 'Redemption In Whole' clause allows an issuer to redeem, or buy back, the entire outstanding amount of a security or bond before its scheduled maturity date. Typically, this clause outlines the conditions under which full redemption can occur, such as specific dates, notice requirements, or payment of a premium to holders. Its core practical function is to provide the issuer with flexibility to manage debt obligations, often in response to favorable market conditions or changes in financial strategy, while giving investors clarity on the circumstances under which their investment may be repaid early.
Redemption In Whole. (a) The Notes are subject to redemption in whole, but not in part, at the direction of the Servicer pursuant to Section 9.01 of the Sale and Servicing Agreement, on any Payment Date on which the Servicer exercises its option to purchase the Collateral (other than the Reserve Account) pursuant to said Section 9.01, for a purchase price equal to the Redemption Price; provided that (i) as of the last day of the related Collection Period the Pool Balance as of such date is 10% or less of the Cutoff Date Pool Balance, and (ii) the sum of the Optional Purchase Price and the Available Funds as of such Redemption Date would be sufficient to pay (x) the amounts set forth under Sections 5.04(a)(i) through 5.04(a)(vii) and Section 5.04(a)(x) of the Sale and Servicing Agreement and (y) the Note Balance of the Notes (after giving effect to payments described in the preceding clause (x)).
(b) Each of the Notes is subject to redemption in whole, but not in part, on any Payment Date on which the sum of the amounts in the Reserve Account and the remaining Available Funds after the payments under Sections 5.04(a)(i) through 5.04(a)(vii) and Section 5.04(a)(x) would be sufficient to pay in full the Note Balance of all of the outstanding Notes as determined by the Servicer. On such Redemption Date, (i) the Indenture Trustee upon written direction from the Servicer shall transfer all amounts on deposit in the Reserve Account to the Collection Account and (ii) the outstanding Notes shall be redeemed in whole, but not in part.
(c) The Servicer or the Issuer shall furnish the Rating Agencies and the Indenture Trustee notice of such redemption. If the Notes are to be redeemed pursuant to this Section 10.01, the Servicer shall furnish notice of such redemption to the Indenture Trustee not later than twenty (20) days prior to the Redemption Date and shall deposit on the Business Day prior to the Redemption Date with the Indenture Trustee in the Collection Account and the Principal Distribution Account, as applicable, the Redemption Price of the Notes to be redeemed, whereupon all such Notes shall be due and payable on the Redemption Date upon the furnishing of a notice complying with Section 10.02 to each Holder of the Notes.