Yield Supplement Agreement Sample Clauses
A Yield Supplement Agreement is a contractual provision designed to ensure that an investor or lender receives a specified minimum yield or return on an investment or loan, even if the underlying asset or payment stream produces less than expected. Typically, this agreement requires a third party, such as the seller or originator, to make supplemental payments to cover any shortfall between the actual yield and the agreed-upon minimum. By guaranteeing a certain level of return, the clause mitigates the risk of underperformance for the investor or lender, thereby enhancing the attractiveness and security of the investment.
Yield Supplement Agreement. Simultaneously with the execution of this Agreement, the Seller conveyed the Yield Supplement Agreement to the Trust as part of the Trust Property and has deposited the Yield Supplement Initial Deposit into the Yield Supplement Account. The Yield Supplement Agreement, with respect to each Receivable (other than Purchased Receivables and Defaulted Receivables), provides for the payment by the Seller on or prior to each Deposit Date of an amount (if positive) calculated by the Servicer equal to one-twelfth of the difference between (i) the sum of interest on the Class A Percentage of such Receivable's Principal Balance as of the first day of the related Collection Period at a rate equal to the sum of the Class A Pass-Through Rate and the Basic Servicing Fee Rate and interest on the Class B Percentage of such Receivable's Principal Balance as of the first day of the related Collection Period at a rate equal to the sum of the Class B Pass-Through Rate and the Basic Servicing Fee Rate and (ii) interest on such Receivable's Principal Balance as of the first day of the related Collection Period at a rate equal to the Contract Rate (in the aggregate for all Receivables with respect to any Distribution Date, the "YIELD SUPPLEMENT AMOUNT").
Yield Supplement Agreement. Simultaneously with the execution of this Agreement, the Depositor shall convey the Yield Supplement Agreement to the Trust as part of the Trust Property. The Yield Supplement Agreement, with respect to each Receivable (other than Repurchased Receivables and Defaulted Receivables), provides for the payment by the Depositor, to the extent of the funds available in the Yield Supplement Account, on or prior to each Deposit Date of an amount (if positive) calculated by the Servicer equal to one-twelfth of the difference between (i) interest on such Receivable's Principal Balance as of the first day of the preceding Collection Period calculated at a rate equal to the sum of the weighted average of the Class A Pass-Through Rate and the Class B Pass-Through Rate and the Servicing Fee Rate over (ii) interest accrued on such Receivable's Principal Balance as of the first day of the preceding Collection Period at its Contract Rate (in the aggregate for all Receivables with respect to any Payment Date, the "Yield Supplement Amount").
Yield Supplement Agreement. 47 Section 5.2 Yield Supplement Account.......................................47
Yield Supplement Agreement. (a) On or prior to the Closing Date, the Trustee shall enter into the Yield Supplement Agreement with the Yield Supplement Counterparty for the benefit of the Certificateholders. The Trustee shall notify the Yield Supplement Counterparty in writing not later than two Business Days prior to each related Payment Date, by sending a notice in the form of Exhibit X attached hereto specifying (i) LIBOR for such Accrual Period, as determined by the Trustee (ii) the Class A-1F Principal Balance as of the close of business on the first such day of such Accrual Period and (iii) the number of days in such Accrual Period.
(b) In the event that any payments are received by the Trustee pursuant to the Yield Supplement Agreement, the Trustee shall deposit such amounts, immediately upon receipt, into the Yield Supplement Sub-Account.
(c) Subject to the terms of this Agreement (including without limitation the protections and benefits of Article XII hereof), the Trustee shall enforce and comply with its obligations under the Yield Supplement Agreement, including without limitation enforcement of the Trustee's rights and remedies upon any Yield Supplement Agreement Event of Default or Yield Supplement Agreement Termination Event.
(d) Upon the occurrence of a Yield Supplement Agreement Event of Default or Yield Supplement Agreement Termination Event, if the Servicer in the exercise of its reasonable judgment determines that such action would be in the best interest of Certificateholders, the Servicer shall direct the Trustee in writing to terminate the Yield Supplement Agreement, and the Trustee shall thereupon proceed promptly to terminate the Yield Supplement Agreement in accordance with its terms and shall hold all termination payments received by it from the Yield Supplement Counterparty (collectively, the "Termination Amount") in a segregated account in trust for the benefit of Certificateholders. In connection with a termination of the Yield Supplement Agreement, the Servicer shall use reasonable efforts to identify a suitable successor yield supplement counterparty and to negotiate a new yield supplement agreement on behalf of the Trust having substantially similar terms as those set forth in the terminated Yield Supplement Agreement; provided that the fee payable to the new yield supplement counterparty shall in no event exceed the Termination Amount. In such event, the Servicer shall direct the Trustee to enter into the new yield supplement agreement with the new yi...
Yield Supplement Agreement. Simultaneously with the execution of this Agreement, the Seller conveyed the Yield Supplement Agreement to the Trust as part of the Trust Property and has deposited the Yield Supplement Initial Deposit into the Yield Supplement Account. The Yield Supplement Agreement, with respect to each Receivable (other than Purchased Receivables and Liquidating Receivables), provides for the payment by the Seller on or prior to each Deposit Date of an amount (if positive) calculated by the Servicer equal to [INSERT CALCULATION OF YIELD SUPPLEMENT AMOUNT] (the "YIELD SUPPLEMENT AMOUNT").