The Credit Enhancer Clause Samples
The Credit Enhancer clause designates a party or mechanism that provides additional financial assurance to support the obligations of a borrower or issuer. This may involve a third-party guarantor, a letter of credit, or insurance that steps in to cover payments if the primary obligor defaults. By introducing a credit enhancer, the clause reduces the risk for lenders or investors, making the transaction more secure and potentially improving the terms for the primary party.
The Credit Enhancer. Any right conferred to the Credit Enhancer hereunder shall be suspended during any period in which the Credit Enhancer is in default in its payment obligations under the Policy. At such time as the Certificates are no longer outstanding under the Pooling and Servicing Agreement, and no amounts owed to the Credit Enhancer with respect to the Certificates remain unpaid, the Credit Enhancer's rights hereunder shall terminate. The Credit Enhancer is an intended third-party beneficiary of this Agreement.
The Credit Enhancer. Any right conferred to the Credit Enhancer hereunder shall be suspended during any period in which the Credit Enhancer is in default in its payment obligations under the Insurance Policy, and its rights hereunder during
The Credit Enhancer. The Credit Enhancer is a third-party ------------------- beneficiary of this Indenture entitled to enforce its rights hereunder as if actually a party hereto. Any right conferred upon the Credit Enhancer shall be suspended during any period in which the Credit Enhancer is in default under the Credit Enhancement Policy or involved in an insolvency proceeding. During any period of suspension, the Credit Enhancer's rights hereunder shall vest in the Noteholders and shall be exercisable by the Majority-in-Interest (unless specified otherwise in the particular provision herein). At such time as the Class A Notes are no longer Outstanding hereunder and the Credit Enhancer has been paid all Credit Enhancement Premiums, reimbursable expenses, and Credit Enhancement Reimbursement Amounts and reimbursed for all Insured Payments to which it is entitled under the Indenture and the Insurance Agreement, the Credit Enhancer's rights hereunder shall terminate.
The Credit Enhancer. Each custodian shall be a depository institution (or an affiliate of a depository institution) subject to supervision by federal or state authority and shall be qualified to do business in the jurisdiction in which it holds any Collateral. Each Custodial Agreement may be amended only with the consent of the Credit Enhancer, which shall not be unreasonably withheld.