Second Mortgage Notes Proceeds Account Clause Samples
The Second Mortgage Notes Proceeds Account clause establishes a dedicated account for holding the proceeds generated from the issuance of second mortgage notes. Typically, this account is managed by a trustee or agent, and all funds received from the sale or repayment of these notes are deposited into it. The clause outlines how these funds are to be handled, such as specifying permitted uses, disbursement procedures, or priority of payments. Its core practical function is to ensure transparent and orderly management of proceeds, protecting the interests of stakeholders by preventing misuse and providing a clear process for fund allocation.
Second Mortgage Notes Proceeds Account. Notwithstanding any other provision hereof, the parties hereto acknowledge that the security interest granted by the Company to the Indenture Trustee in the Second Mortgage Notes Proceeds Account (including any Permitted Investments held therein) pursuant to the Second Mortgage Notes Collateral Account Agreement is for the sole and exclusive benefit of the Indenture Trustee and the Second Mortgage Note Holders and, subject to the terms of the Project Lenders Intercreditor Agreement, only the Indenture Trustee shall have the right to direct the Disbursement Agent with respect thereto.
Second Mortgage Notes Proceeds Account. On or prior to the Closing Date, there shall be established at Deutsche Bank Trust Company Americas, as the Securities Intermediary, the Second Mortgage Notes Proceeds Account pursuant to the Second Mortgage Notes Company Collateral Account Agreement. There shall be deposited into the Second Mortgage Notes Proceeds Account (a) the Second Mortgage Notes Proceeds and (b) investment income from Permitted Investments on amounts on deposit in the Collection Account to the extent arising from funds withdrawn from the Second Mortgage Notes Proceeds Account. Subject to the provisions of Section 10.2 and the Second Mortgage Notes Company Collateral Account Agreement, amounts on deposit in the Second Mortgage Notes Proceeds Account shall, from time to time, be transferred by the Disbursement Agent to the Collection Account and thereafter to the Disbursement Account for application to pay Project Costs in accordance with Section 2.4.4(a) and, on the Final Completion Date, be applied as provided in Section 2.11. Investment income from Permitted Investments on amounts on deposit in the Second Mortgage Notes Proceeds Account shall be deposited at all times therein until applied to the payment of Project Costs or applied in accordance with Section 2.11.