Additional Reserve Account definition
Examples of Additional Reserve Account in a sentence
With reference to each Transaction, pursuant to the Programme Cash Allocation, Management and Payments Agreement and the relevant Series CAMPA, the Issuer will establish the relevant Additional Reserve Account with the Transaction Bank.
On the relevant Issue Date, the relevant Additional Reserve Initial Amount shall be transferred into the relevant Additional Reserve Account and, thereafter, on each Payment Date before the delivery of a Transaction Acceleration Notice, the relevant Additional Reserve Target Amount shall be transferred into the relevant Additional Reserve Account.
Funds in the ARA (typically non-rebatable interest earnings) that are not required for deposit to the Loan Repayment fund flow to the Master SRF Fund and may be used in subsequent years as a source of capital for making direct loans and/or Additional Reserve Account (ARA) funding.
Funds flowing into this account are normally derived from a combination of deposits from the Capitalized Interest Fund, the Additional Reserve Account and from borrowers’ loan repayments.
Non-rebatable interest earnings not required for deposits to the Loan Repayment fund flow to the Master SRF Fund and may be used in subsequent years as a source of capital for making direct loans and/or Additional Reserve Account (ARA) funding.
In that case, draws of federal grant funds from the ACH are calculated on the basis of a “Leveraging Ratio.” The Leveraging Ratio is determined by dividing the amount that will be disbursed to the Bond Pool Loan Recipients by the portion of the ACH required for security in the Additional Reserve Account.
Since capitalization grant funds may be pledged to the Additional Reserve Account (ARA), disbursements to Loan Recipients from the Bond Pool Project Fund can trigger draws from the Federal Capitalization Grant.
In this situation, draws from the ACH are calculated on the basis of a “Leveraging Ratio.” The Leveraging Ratio is calculated by dividing the amount that will be disbursed to the Bond Pool Loan Recipients by the portion of the ACH required for security in the Additional Reserve Account.
Funds flowing into this account are normally derived from a combination of deposits from the Capitalized Interest Fund, the Additional Reserve Account and from loan repayments.
Disbursements to Loan Recipients of the Bond Pool Project Fund for eligible incurred costs may justify draws from the Federal Capitalization Grant, if grant funds are pledged to the Additional Reserve Account.