Swap Collateral Account Clause Samples
A Swap Collateral Account clause establishes a dedicated account where collateral is held to secure obligations arising from swap transactions between parties. Typically, this clause outlines the requirements for funding the account, the types of acceptable collateral, and the conditions under which collateral may be transferred in or out of the account. By clearly defining the management and use of collateral, the clause helps mitigate credit risk and ensures that both parties have a transparent mechanism for safeguarding their financial interests in the event of default or market fluctuations.
Swap Collateral Account. The Trust Administrator (in its capacity as Supplemental Interest Trust Trustee) is hereby directed to perform the obligations of the Custodian as defined under the Swap Credit Support Annex (the “Swap Custodian”). On or before the Closing Date, the Swap Custodian shall establish a Swap Collateral Account (the “Swap Collateral Account”). The Swap Collateral Account shall be held in the name of the Swap Custodian in trust for the benefit of the Certificateholders and the Certificate Insurer. The Swap Collateral Account must be an Eligible Account and shall be titled “Swap Collateral Account, W▇▇▇▇ Fargo Bank, N.A., as Swap Custodian for registered Certificateholders of Option One Mortgage Loan Trust 2007-HL1, Asset-Backed Certificates, Series 2007-HL1.” The Swap Custodian shall credit to Swap Collateral Account all collateral (whether in the form of cash or securities) posted by the Swap Provider to secure the obligations of the Swap Provider in accordance with the terms of the Interest Rate Swap Agreement. Except for investment earnings, the Swap Provider shall not have any legal, equitable or beneficial interest in the Swap Collateral Account other than in accordance with this Agreement, the Interest Rate Swap Agreement and applicable law. The Swap Custodian shall maintain and apply all collateral and earnings thereon on deposit in the Swap Collateral Account in accordance with Swap Credit Support Annex. Cash collateral posted by the Swap Provider in accordance with the Swap Credit Support Annex shall be invested at the direction of the Swap Provider in Permitted Investments in accordance with the requirements of the Swap Credit Support Annex. All amounts earned on amounts on deposit in the Swap Collateral Account (whether cash collateral or securities) shall be for the account of and taxable to the Swap Provider. If no investment direction is provided, such amounts shall remain uninvested. Upon the occurrence of an Event of Default, or Specified Condition (each as defined in the Interest Rate Swap Agreement), with respect to the Interest Rate Swap Provider or upon occurrence or designation of an Early Termination Date (as defined in the Interest Rate Swap Agreement) as a result of any such Event of Default, Termination Event, or Additional Termination Event with respect to the Interest Rate Swap Provider, and, in either such case, unless the Interest Rate Swap Provider has paid in full all of its Obligations (as defined in the Interest Rate Swap Credit S...
Swap Collateral Account. Tax Treatment of Class IO Distribution Amounts in the Event of Resecuritization of Class A, Class M or Class B Certificates.
Swap Collateral Account. The Trustee shall establish and maintain an account (the "Swap Provider Collateral Account") in which collateral received from the Swap Provider shall be deposited. Funds in the Swap Provider Collateral Account shall be held uninvested; provided however, the Trustee shall pay from its own funds to the Swap Provider the "interest rate" as set forth in paragraph 13(h) of the Credit Support Annex, attached hereto as Exhibit X. All such interest shall be paid to the Swap Provider as set forth in paragraph 13(h) of the Credit Support Annex. If an event of default by the Swap Provider occurs under the Interest Rate Swap Agreement, the Trustee shall enforce the rights of the Trust under the Interest Rate Swap Agreement as well as with respect to any collateral in the Swap Provider Collateral Account.
Swap Collateral Account. (a) The Bank of New York Trust Company, N.A. is hereby directed to perform the obligations of the Custodian as defined under the Swap Credit Support Annex (the "Swap Custodian").
(b) Upon the initial posting of collateral by the Swap Provider pursuant to the terms of the Swap Credit Support Annex, the Swap Custodian shall establish a Swap Collateral Account (the "Swap Collateral Account"). The Swap Collateral Account shall be held in the name of the Swap Custodian in trust for the benefit of the Holders of the Notes. The Swap Collateral Account must be an Eligible Account and shall be entitled "Origen Manufactured Housing Contract Trust Collateralized Notes, Series 2007-A, Swap Collateral Account, The Bank of New York Trust Company, N.A., as Swap Custodian for the benefit of Holders of the Origen Manufactured Housing Contract Trust Collateralized Notes, Series 2007-A."