THE GRANTOR TRUST Clause Samples

The Grantor Trust clause establishes that a trust is treated as a grantor trust for tax purposes, meaning the person who creates the trust (the grantor) retains certain powers or interests that cause the trust's income and deductions to be reported on their personal tax return. In practice, this clause typically specifies the powers retained by the grantor, such as the ability to substitute trust assets or revoke the trust, which trigger grantor trust status under IRS rules. The core function of this clause is to ensure that the trust's income is taxed directly to the grantor, simplifying tax reporting and potentially allowing for more flexible estate and income tax planning.
THE GRANTOR TRUST. The following table sets forth each Class of Certificates that represents an undivided beneficial interest in the corresponding portion of the Grantor Trust (each such portion, a “Grantor Trust Designated Portion”). The Class V Certificates will not have a Certificate Balance or a Notional Amount, bear interest or be entitled to distributions of Prepayment Premiums or Yield Maintenance Charges. As provided herein, the Certificate Administrator shall not take any actions that would (i) cause the Grantor Trust not to be classified as a grantor trust for U.S. federal income tax purposes, (ii) cause the holders of the Class V Certificates or the Exchangeable Certificates or the VRR Interest Owners not to be the owners of their Grantor Trust Designated Portions or (iii) cause the Grantor Trust to be treated as part of any Trust REMIC. As of the close of business on the Cut-off Date, the Mortgage Loans had an aggregate principal balance, after application of all payments of principal due on or before such date, whether or not received, equal to $490,942,714.
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THE GRANTOR TRUST. The Certificates (other than the Class R Certificates) shall represent undivided beneficial interests in the related portions of the Grantor Trust as described herein. As provided herein, the Certificate Administrator shall not take any actions that would cause the portion of the Trust Fund consisting of the Grantor Trust (i) to fail to maintain its status as a “grantor trust” under federal income tax law or (ii) to be treated as part of any Trust REMIC.
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THE GRANTOR TRUST. The Class V Certificates and the RR Interest shall represent undivided beneficial interests in the Grantor Trust consisting of the Class V Specific Grantor Trust Assets and the RR Interest Specific Grantor Trust Assets, respectively, as described herein. As provided herein, the Certificate Administrator shall not take any actions that would cause the portion of the Trust Fund consisting of the Grantor Trust (i) to fail to maintain its status as a “grantor trust” under federal income tax law or (ii) to be treated as part of any Trust REMIC.
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THE GRANTOR TRUST. The following table sets forth each Class of Certificates that represents an undivided beneficial interest in the corresponding portion of the Grantor Trust (each such portion, a “Grantor Trust Designated Portion”). As provided herein, the Certificate Administrator shall not take any actions that would (i) cause the Grantor Trust not to be classified as a grantor trust for U.S. federal income tax purposes, (ii) cause the holders of the Exchangeable Certificates not to be the owners of their Grantor Trust Designated Portions or (iii) cause the Grantor Trust to be treated as part of any Trust REMIC. As of the close of business on the Cut-off Date, the Mortgage Loans had an aggregate principal balance, after application of all payments of principal due on or before such date, whether or not received, equal to $613,468,550.
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THE GRANTOR TRUST. The portions of the Trust Fund consisting of the Class S Specific Grantor Trust Assets shall be classified as a trust under Treasury Regulations Section 301.7701-4, and the holders of the Certificates representing beneficial ownership interests in such assets and cash flows shall be treated as the owners of such assets and cash flows for federal income tax purposes under Section 671 of the Code (such a trust, the “Grantor Trust”). As provided herein, the Certificate Administrator shall not take any actions that would cause the Grantor Trust (i) to fail to maintain its status as a grantor trust under the Code or (ii) to be treated as part of either Trust REMIC. The following table sets forth the Class designation, the approximate initial interest entitlements, the initial Certificate Balance and the assets (and cashflows) underlying each Certificate representing an interest in the Grantor Trust: Class Designation Interest Entitlements (per annum) Original Certificate Balance Specific Grantor Trust Assets Represented by such Certificate Class S (1) (1) Class S Specific Grantor Trust Assets
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THE GRANTOR TRUST. The Class ELP Certificates shall represent undivided beneficial interests in the Grantor Trust as described herein. As provided herein, the Certificate Administrator shall not take any actions that would cause the portions of the Trust Fund consisting of the Grantor Trust (i) to fail to maintain its status as a “grantor trust” under federal income tax law or (ii) to be treated as part of any Trust REMIC. The Class ELP Certificates will not have a Pass-Through Rate or Certificate Balance or notional amount, but will be entitled to the right to exercise their Excess Liquidation Proceeds Option.
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THE GRANTOR TRUST. (a) The assets of the Grantor Trust, consisting of the right to any Excess Interest in respect of the ARD Loans and the Excess Interest Sub-account, shall be held by the Trustee and Paying Agent for the benefit of the Holders of the Class O Grantor Trust Interest, represented by the Class O Certificates, which Class O Certificates, in the aggregate, will evidence 100% beneficial ownership of such assets from and after the Closing Date. (b) The assets of the Grantor Trust, consisting of the right to any ▇▇▇▇▇▇▇ ▇▇▇▇ Yield Maintenance Amounts and the ▇▇▇▇▇▇▇ ▇▇▇▇ Sub-account, shall be held by the Trustee and Paying Agent for the benefit of the Holders of the Class A-1 Grantor Trust Interest represented by the Class A-1 Certificates, for the benefit of the Class X-1 Grantor Trust Interest represented by the Class X-1 Certificates and for the benefit of the Holders of the Class X-2 Grantor Trust Interest represented by the Class X-2 Certificates, which Class A-1, Class X-1 and Class X-2 Certificates, in the aggregate, will evidence 100% beneficial ownership of such assets from and after the Closing Date. (c) The parties intend that the portions of the Trust consisting of the Grantor Trust shall constitute, and that the affairs of the Trust (exclusive of the REMIC Pools) shall be conducted so as to qualify such portion as, a "grantor trust" under the Code, and the provisions hereof shall be interpreted consistently with this intention. Under no circumstances may the Trustee or the Paying Agent vary the assets of the Grantor Trust so as to take advantage of variations in the market so as to improve the rate of return of Holders of the Class A-1, Class X-1, Class X-2 or Class O Certificates. The Trustee and Paying Agent shall be deemed to hold and shall account for the Grantor Trust separate and apart from the assets of the ▇▇▇▇▇▇▇ ▇▇▇▇ Loan REMIC, REMIC I, REMIC II and REMIC III created hereunder. The Paying Agent shall furnish or cause to be furnished to the Class A-1, Class X-1, Class X-2 and Class O Certificateholders and shall file, or cause to be filed with the Internal Revenue Service, together with Form 1041 or such other form as may be applicable, information returns with respect to income and expenses relating to their shares of the income and expenses of the Grantor Trust, and with respect to the Grantor Trust, on the cash or accrual method of accounting and so as to enable reporting to the Holders of Class A-1, Class X-1, Class X-2 and Class O Certifi...
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THE GRANTOR TRUST. The following table sets forth each Class of Certificates (or VRR Interest) that represents an undivided beneficial interest in the corresponding portion of the Grantor Trust (each such portion, a “Grantor Trust Designated Portion”). As provided herein, the Certificate Administrator shall not take any actions that would (i) cause the Grantor Trust not to be classified as a grantor trust for U.S. federal income tax purposes, (ii) cause the holders of such Classes of Certificates or VRR Interest Owners not to be the owners of their Grantor Trust Designated Portions or (iii) cause the Grantor Trust to be treated as part of any Trust REMIC. The Class V Certificates will not have a Certificate Balance or a Notional Amount, bear interest or be entitled to distributions of Prepayment Premiums or Yield Maintenance Charges. As of the close of business on the Cut-off Date, the Mortgage Loans had an aggregate principal balance, after application of all payments of principal due on or before such date, whether or not received, equal to $656,045,790.
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Related to THE GRANTOR TRUST

  • Grantor Trust Reporting (a) The Certificate Administrator shall maintain adequate books and records to account for the separate entitlements of the Grantor Trust. (b) The parties intend that the Grantor Trust shall be treated as a “grantor trust” under the Code, and the provisions thereof shall be interpreted consistently with this intention. In furtherance of such intention, none of the Depositor, the Master Servicer, the Special Servicer, the Trustee or the Certificate Administrator shall vary the assets of the Grantor Trust so as to take advantage of market fluctuations or so as to improve the rate of return of the Grantor Trust Certificates, and shall otherwise comply with Treasury Regulations Section 301.7701-4(c). The Certificate Administrator shall timely file or cause to be timely filed with the IRS Form 1041, Form 1099 or such other form as may be applicable and shall furnish or cause to be furnished to the Holders of the respective Classes of the Grantor Trust Certificates, their allocable share of income and expense with respect to the VRR Specific Grantor Trust Assets, the Class S Specific Grantor Trust Assets and proceeds thereof as such amounts are received or accrue, as applicable. (i) The Grantor Trust is a WHFIT that is a WHMT. The Certificate Administrator shall report as required under the WHFIT Regulations to the extent such information as is reasonably necessary to enable the Certificate Administrator to do so is provided to the Certificate Administrator on a timely basis. The Certificate Administrator will not be liable for any tax reporting penalties that may arise under the WHFIT Regulations in the event that the IRS makes a determination that is contrary to the first sentence of this paragraph. (ii) The Certificate Administrator, in its discretion, shall report required WHFIT information using either the cash or accrual method, except to the extent the WHFIT Regulations specifically require a different method. The Certificate Administrator shall be under no obligation to determine whether any Certificateholder uses the cash or accrual method. The Certificate Administrator shall make available (via the Certificate Administrator’s Website) WHFIT information to Certificateholders annually. In addition, the Certificate Administrator shall not be responsible or liable for providing subsequently amended, revised or updated information to any Certificateholder, unless requested by the Certificateholder. (iii) The Certificate Administrator shall not be liable for failure to meet the reporting requirements of the WHFIT Regulations nor for any penalties thereunder if such failure is due to: (i) the lack of reasonably necessary information that is not in its possession being provided to the Certificate Administrator or (ii) incomplete, inaccurate or untimely information being provided to the Certificate Administrator. Each owner of a class of securities representing, in whole or in part, beneficial ownership of an interest in a WHFIT, by acceptance of its interest in such class of securities, will be deemed to have agreed to provide the Certificate Administrator with information regarding any sale of such securities, including the price, amount of proceeds and date of sale. Absent receipt of information regarding any sale of Certificates, including the price, amount of proceeds and date of sale from the beneficial owner thereof or the Depositor, the Certificate Administrator shall assume there is no secondary market trading of WHFIT interests. (d) To the extent required by the WHFIT Regulations, the Certificate Administrator shall use reasonable efforts to publish on the Certificate Administrator’s Website the CUSIP Numbers for the Certificates that represent ownership of a WHFIT. The CUSIP Number so published will represent the Rule 144A CUSIP Numbers. The Certificate Administrator shall make reasonable good faith efforts to keep the website accurate and updated to the extent CUSIP Numbers have been received. Absent the receipt of a CUSIP Number, the Certificate Administrator will use a reasonable identifier number in lieu of a CUSIP Number. The Certificate Administrator shall not be liable for investor reporting delays that result from the receipt of inaccurate or untimely CUSIP Number information.