Common use of Sale of Defaulted Obligations Clause in Contracts

Sale of Defaulted Obligations. The Collateral Manager will, if it believes such sale to be practicable, instruct the Trustee in writing to sell, and the Trustee shall sell, any Defaulted Obligation at any time; provided, however, that during the Reinvestment Period the Collateral Manager will use its commercially reasonable efforts to purchase (on behalf of the Issuer) within 90 Business Days after the settlement date for such sale of a Defaulted Obligation, one or more additional Collateral Obligations having an Aggregate Principal Amount at least equal to the Sale Proceeds received from such sale (excluding Sale Proceeds that constitute Interest Proceeds). After the Reinvestment Period, the Collateral Manager will instruct the Trustee to apply the Sale Proceeds of Defaulted Obligations in accordance with the Priority of Payments. For the avoidance of doubt, the exchange of a Defaulted Obligation for an Exchanged Defaulted Obligation pursuant to Section 12.1(f) shall not be deemed to be a sale of a Defaulted Obligation and for purposes of the calculation of Principal Balance, the ownership period for such Exchanged Defaulted Obligation shall include the ownership period for the Defaulted Obligation exchanged therefor.

Sale of Defaulted Obligations. The Collateral Manager will, if it believes such sale to be practicable, instruct the Trustee in writing to sell, and the Trustee shall sell, any Defaulted Obligation at any time; provided, however, that during the Reinvestment Period the Collateral Manager will use its commercially reasonable efforts to purchase (on behalf of the Issuer) within 90 Business Days after the settlement date for such sale of a Defaulted Obligation, one or more additional Collateral Obligations having an Aggregate Principal Amount at least equal to the Sale Proceeds received from such sale (excluding Sale Proceeds that constitute Interest Proceeds). After the Reinvestment Period, the Collateral Manager will instruct the Trustee to apply the Sale Proceeds of Defaulted Obligations in accordance with the Priority of Payments. For the avoidance of doubt, the exchange of a Defaulted Obligation for an Exchanged Defaulted Obligation pursuant to Section 12.1(f12.1(e) shall not be deemed to be a sale of a Defaulted Obligation and for purposes of the calculation of Principal Balance, the ownership period for such Exchanged Defaulted Obligation shall include the ownership period for the Defaulted Obligation exchanged thereforObligation.