Common use of Subordination; Priority of Distributions Clause in Contracts

Subordination; Priority of Distributions. (a) The rights of the holders of any Subclass of Class M Certificates to receive distributions in respect thereof on any Distribution Date shall be subordinated to the rights of the Class A Certificateholders and the holders of each Class M Subclass having a lower numerical designation to receive distributions to the extent, and only to the extent, described herein. The right of the Servicer to receive its Servicing Fee and its Additional Servicing Compensation shall not be subordinated to the rights of Certificateholders. (b) On each Distribution Date, the aggregate amount of Interest Proceeds and Principal Proceeds will be applied in the following amounts, to the extent the amount thereof is sufficient therefor, in the manner and in the order of priority as follows: 1. The sum of Interest Proceeds and Principal Proceeds (in each case, excluding all permitted withdrawals from the Collection Account pursuant to Section 3.06(d)) will be applied sequentially, as follows: a. concurrently, to the Subclasses of Class A Certificates, pro rata, their respective Class A Subclass Interest Amounts and any Class A Subclass Interest Shortfalls for such Distribution Date; b. sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, their respective Class M Subclass Interest Amounts for such Distribution Date; c. to the Subclasses of Class A Certificates, the amounts provided in Section 12.01(d) or (e), as applicable; d. sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, in each case until their respective Principal Balance is reduced to zero, an amount equal to their Class M Subclass Principal Distribution Amount; e. sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, an amount equal to any Class M Subclass Interest Shortfall for such Class for such Distribution Date or previously allocated thereto, and then, sequentially, in that order, an amount equal to any Applied Loss Amount allocated to such Class pursuant to Section 13.02 on such Distribution Date plus any Class M Subclass Loss Amount for such Class; f. first, concurrently to the Class A Certificates, pro rata, any Net Civil Relief Amounts and Net Non-Supported Amounts for such Subclasses, and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, any Net Civil Relief Amounts and Net Non-Supported Amounts for such Class; g. first, concurrently to the Class A Certificates, pro rata, any Net Class A WAC Cap Amounts for such Subclasses, and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, any Net Class M WAC Cap Amounts for such Class; h. to the Holder of the Class CE Certificates, the Class CE Distributable Amount; and i. to the Holder of the Class R Certificate, any remaining amount. 2. It is the intention of the parties hereto that the portion of the Trust Fund, exclusive of the Lower-Tier REMIC and Upper-Tier REMIC, be treated as a grantor trust for purposes of Subpart E, Part I of Subchapter J of the Code. In furtherance of such intention, neither the Servicer nor the Trustee shall vary the investment of the Certificateholders in the grantor trust. Solely for REMIC purposes, any amounts distributed pursuant to Section 13.01(b)(1)(g) shall be deemed distributed to the Class CE Certificates in respect of the Class CE Interest from the Upper-Tier REMIC and then deemed paid to the classes of Certificates as described in Section 13.01(b)(1)(g) from the grantor trust.

Subordination; Priority of Distributions. (a) The rights of the holders of any Subclass of Class M Certificates to receive distributions in respect thereof on any Distribution Date shall be subordinated to the rights of the Class A Certificateholders and the holders of each Class M Subclass having a lower numerical designation to receive distributions to the extent, and only to the extent, described herein. The right of the Servicer to receive its Servicing Fee and its Additional Servicing Compensation shall not be subordinated to the rights of Certificateholders. (b) On each Distribution Date, the aggregate amount of Interest Proceeds and Principal Proceeds will be applied in the following amounts, to the extent the amount thereof is sufficient therefor, in the manner and in the order of priority as follows: 1. The sum of Interest Proceeds and Principal Proceeds (in each case, excluding all permitted withdrawals from the Collection Account pursuant to Section 3.06(d)) will be applied sequentially, as follows: a. concurrently, to the Subclasses of Class A Certificates, pro rata, their respective Class A Subclass Interest Amounts and any Class A Subclass Interest Shortfalls for such Distribution Date; b. sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, their respective Class M Subclass Interest Amounts for such Distribution Date; c. to the Subclasses of Class A Certificates, the amounts provided in Section 12.01(d) or (e), as applicable; d. sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, in each case until their respective Principal Balance is reduced to zero, an amount equal to their Class M Subclass Principal Distribution Amount; e. sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, an amount equal to any Class M Subclass Interest Shortfall for such Class for such Distribution Date or previously allocated thereto, and then, sequentially, in that order, an amount equal to any Applied Loss Amount allocated to such Class pursuant to Section 13.02 on such Distribution Date plus any Class M Subclass Loss Amount for such Class; f. first, concurrently to the Class A Certificates, pro rata, any Net Civil Relief Amounts and Net Non-Supported Amounts for such Subclasses, and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, any Net Civil Relief Amounts and Net Non-Supported Amounts for such Class; g. first, concurrently to the Class A Certificates, pro rata, any Net Class A WAC Cap Amounts for such Subclasses, and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx X-0, Xxxxx M-8 and Class M-9 Certificates, in that order, any Net Class M WAC Cap Amounts for such Class; h. to the Holder of the Class CE Certificates, the Class CE Distributable Amount; and i. to the Holder of the Class R Certificate, any remaining amount. 2. It is the intention of the parties hereto that the portion of the Trust Fund, exclusive of the Lower-Tier REMIC and Upper-Tier REMIC, be treated as a grantor trust for purposes of Subpart E, Part I of Subchapter J of the Code. In furtherance of such intention, neither the Servicer nor the Trustee shall vary the investment of the Certificateholders in the grantor trust. Solely for REMIC purposes, any amounts distributed pursuant to Section 13.01(b)(1)(g) shall be deemed distributed to the Class CE Certificates in respect of the Class CE Interest from the Upper-Tier REMIC and then deemed paid to the classes of Certificates as described in Section 13.01(b)(1)(g) from the grantor trust.

Subordination; Priority of Distributions. (a) The rights of the holders of any Subclass of Class M Certificates to receive distributions in respect thereof on any Distribution Date shall be subordinated to the rights of the Class A Certificateholders and the holders of each Class M Subclass having a lower numerical designation to receive distributions to the extent, and only to the extent, described herein. The right of the Servicer to receive its Servicing Fee and its Additional Servicing Compensation shall not be subordinated to the rights of Certificateholders. (b) On each Distribution Date, the aggregate amount of Interest Proceeds and Principal Proceeds will be applied in the following amounts, to the extent the amount thereof is sufficient therefor, in the manner and in the order of priority as follows: 1. The sum of Interest Proceeds and Principal Proceeds (in each case, excluding all permitted withdrawals from the Collection Account pursuant to Section 3.06(d)) will be applied sequentially, as follows: a. concurrently, to the Subclasses of Class A Certificates, pro rata, their respective Class A Subclass Interest Amounts and any Class A Subclass Interest Shortfalls for such Distribution Date; b. sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx Cxxxx X-0, Xxxxx Xxxxs M-8 and Class M-9 Certificates, in that order, their respective Class M Subclass Interest Amounts for such Distribution Date; c. to the Subclasses of Class A Certificates, the amounts provided in Section 12.01(d) or (e), as applicable; d. sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx Cxxxx X-0, Xxxxx Xxxxs M-8 and Class M-9 Certificates, in that order, in each case until their respective Principal Balance is reduced to zero, an amount equal to their Class M Subclass Principal Distribution Amount; e. sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx Cxxxx X-0, Xxxxx Xxxxs M-8 and Class M-9 Certificates, in that order, an amount equal to any Class M Subclass Interest Shortfall for such Class for such Distribution Date or previously allocated thereto, and then, sequentially, in that order, an amount equal to any Applied Loss Amount allocated to such Class pursuant to Section 13.02 on such Distribution Date plus any Class M Subclass Loss Amount for such Class; f. first, concurrently to the Class A Certificates, pro rata, any Net Civil Relief Amounts and Net Non-Supported Amounts for such Subclasses, and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx Cxxxx X-0, Xxxxx Xxxxs M-8 and Class M-9 Certificates, in that order, any Net Civil Relief Amounts and Net Non-Supported Amounts for such Class; g. first, concurrently to the Class A Certificates, pro rata, any Net Class A WAC Cap Amounts for such Subclasses, and then, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Claxx Cxxxx X-0, Xxxxx Xxxxs M-8 and Class M-9 Certificates, in that order, any Net Class M WAC Cap Amounts for such Class; h. to the Holder of the Class CE Certificates, the Class CE Distributable Amount; and i. to the Holder of the Class R Certificate, any remaining amount. 2. It is the intention of the parties hereto that the portion of the Trust Fund, exclusive of the Lower-Tier REMIC and Upper-Tier REMIC, be treated as a grantor trust for purposes of Subpart E, Part I of Subchapter J of the Code. In furtherance of such intention, neither the Servicer nor the Trustee shall vary the investment of the Certificateholders in the grantor trust. Solely for REMIC purposes, any amounts distributed pursuant to Section 13.01(b)(1)(g) shall be deemed distributed to the Class CE Certificates in respect of the Class CE Interest from the Upper-Tier REMIC and then deemed paid to the classes of Certificates as described in Section 13.01(b)(1)(g) from the grantor trust.