Common use of Trustee to Hold Policy Clause in Contracts

Trustee to Hold Policy. The Trustee will hold the Policy in trust as agent for the Insured Certificateholders for the purpose of making claims thereon and distributing the proceeds thereof. Neither the Policy, nor the amounts paid on the Policy will constitute part of the Trust Fund or assets of any REMIC created by this Agreement. Each Insured Certificateholder, by accepting its Certificate, appoints the Trustee as attorney-in-fact for the purpose of making claims on the Policy. The Trustee shall surrender the Policy to the Insurer for cancellation upon the expiration of the term of the Policy as provided in the Policy following the retirement of the Insured Certificates. To the extent that the Policy constitutes a reserve fund for federal income tax purposes, (1) it shall be an outside credit support agreement and not an asset of any REMIC and (2) it shall be owned by the Insurer, all within the meaning of Section 1.860G-2(h) of the Treasury Regulations.