Securitization Charge Adjustments Clause Samples
The Securitization Charge Adjustments clause defines how charges related to securitized assets or transactions may be modified over time. Typically, this clause outlines the circumstances under which adjustments to these charges can be made, such as changes in regulatory requirements, fluctuations in interest rates, or variations in the underlying asset performance. For example, if the costs associated with maintaining a securitized pool increase, the clause may permit the issuer to pass those costs on to relevant parties. Its core practical function is to provide a mechanism for keeping securitization charges fair and reflective of actual costs, thereby ensuring financial stability and predictability for all parties involved.
Securitization Charge Adjustments. The Servicer shall perform the calculations and take the actions relating to adjusting the Securitization Charges, as set forth in Annex 1.
Securitization Charge Adjustments. (a) Prior to each Calculation Date, the Servicer shall calculate
(i) the Securitization Bond Balance as of the Payment Date immediately preceding the next Adjustment Date (a written copy of which shall be delivered by the Servicer to the Trustee within five days following such Calculation Date), and
(ii) the revised Securitization Charges with respect to the Transferred Securitization Property in respect of each Adjustment Date such that the Servicer projects that Securitization Charge Collections therefrom allocable to the Issuer will be sufficient so that:
(A) the Securitization Bond Balance on the Payment Date immediately preceding the next Adjustment Date will equal the Projected Securitization Bond Balance as of such date, taking into account any amounts on deposit in the Reserve Subaccount,
(B) the amount on deposit in the Overcollateralization Subaccount on the Payment Date immediately preceding the next Adjustment Date will equal the Scheduled Overcollateralization Level for such date, taking into account amounts on deposit in the Reserve Subaccount,
(C) the amount on deposit in the Capital Subaccount on the Payment Date immediately preceding the next Adjustment Date will equal its required level for such date, taking into account any amounts on deposit in the Reserve Subaccount,
(D) the amount on deposit in the Reserve Subaccount on the Payment Date immediately preceding the next Adjustment Date will equal zero, and
(E) the Securitization Charge Collections will provide for (i) amortization of the remaining outstanding principal amount of each Series in accordance with the Expected Amortization Schedule therefor, (ii) payment of interest on each Series when due, payment of any amounts under any Interest Rate Swap Agreement, (iii) payment of all Operating Expenses of the Issuer when due in accordance with the Indenture, and (iv) deposits to the Overcollateralization Subaccount such that the balance therein will equal the Scheduled Overcollateralization Level on the Payment Date immediately preceding the next Adjustment Date.
(b) On or before each Calculation Date, the Servicer shall file an Adjustment Request with the MPSC. This filing shall include the data specified in the Financing Order.
(c) On each Adjustment Date, the Servicer shall
(i) take all reasonable actions and make all reasonable efforts to effectuate all adjustments to the Securitization Charges, and
(ii) promptly send to the Trustee copies of all material notices and documents relat...