Examples of Credit Enhancement Increase Condition in a sentence
If a Level 2 Credit Enhancement Increase Condition is in effect, the Asset Backed Loan Overcollateralization Percentage will be 100%.
All remaining funds will be used to perform payments in the more junior positions of the Order of Priority.The Target OC percentages for each Note Class are determined subject to 3 items:- They will increase in 2 steps in case the Cumulative Net Loss Ratio exceeds a certain level and Credit Enhancement Increase Condition is met.
The respective Amortisation Amount is intended to reduce the aggregate outstanding principal amounts of the Amortising Series of Notes to amounts which would leave an amount of overcollateralisation constant as a percentage of the Aggregate Discounted Receivables Balance, subject to certain specified increases in those percentages in case a Credit Enhancement Increase Condition is in effect.
On each Payment Date, any amount of the Cash Collateral Amount in excess of the Specified General Cash Collateral Account Balance for that Payment Date, provided that no Credit Enhancement Increase Condition is in effect, will be released for payment to the Subordinated Lender of the Subordinated Loan.
If a Level 1 Credit Enhancement Increase Condition is in effect, the Asset Backed Loan Overcollateralization Percentage will be 17.0%.
If the Cumulative Gross Loss Ratio exceeds one point six percent (1.6%) as of any Trust Calculation Date, a Level 2 Credit Enhancement Increase Condition will be deemed to be in effect.
On any Payment Date after satisfaction of the amounts in clause 20.3(a) (Distribution Account; Accumulation Account; Counterparty Downgrade Collateral Account; Swap Provisions) of the Trust Agreement, any positive difference between the General Cash Collateral Amount and the Specified Cash Collateral Account Balance shall be distributed according to the following Order of Priority, provided that no Credit Enhancement Increase Condition is in effect.
On any Payment Date after satisfaction of the amounts in clause 20.3(a) (Distribution Account; Accumulation Account; Cash Collateral Account, Counterparty Downgrade Collateral Account; Swap Provisions) of the Trust Agreement, any positive difference between the General Cash Collateral Amount and the Specified General Cash Collateral Account Balance shall be distributed according to the following Order of Priority, provided that no Credit Enhancement Increase Condition is in effect.
If the Cumulative Gross Loss Ratio exceeds 1.6% as of any Trust Calculation Date, a Level 2 Credit Enhancement Increase Condition will be deemed to be in effect.
If a Level 1 Credit Enhancement Increase Condition is in effect, the Asset Backed Loan Overcollateralization Percentage will be 17%.