Negative Arbitrage definition

Negative Arbitrage means invested bond funds (typically an Escrow) are earning less interest than the interest rate on the bonds that are the source of the invested funds.
Sample 1

Examples of Negative Arbitrage in a sentence

  • On the MBS Delivery Date, the Trustee shall remit to the Lender as payment for the MBS, the principal portion of the MBS Purchase Price (from amounts on deposit in the Collateral Fund), plus the interest portion of the MBS Purchase Price (from amounts on deposit in the Revenue Fund and, to the extent amounts on deposit in the Revenue Fund, other than amounts in the Negative Arbitrage Account therein, are insufficient for such purposes, from amounts on deposit in the Negative Arbitrage Account therein).

  • Revenue Fund.(a) On any Payment Date that occurs prior to or during the month in which the MBS is delivered to the Trustee, the Trustee shall disburse from the Revenue Fund (and, to the extent amounts in the Revenue Fund, other than amounts in the Negative Arbitrage Account therein, are insufficient for such purposes, from the Negative Arbitrage Account therein) an amount equal to the amount of interest due on the Bonds on such Payment Date pursuant to the Mortgage Loan Amortization Schedule.

  • On the Closing Date, there shall be deposited in the Negative Arbitrage Account of the Bond Fund the amount set forth in Section 4.02(b) hereof, which is an amount equal to the amount of interest payments on the Bonds from the Closing Date to the Initial Mandatory Tender Date.

  • The transfer of moneys from the Negative Arbitrage Account of the Project Fund to the Funding Loan Payment Fund shall occur automatically without the need for a Written Requisition of the Borrower or consent of the Funding Lender.

  • The portion of any Extension Payment received by the Trustee in connection with a remarketing in accordance with Section 3.07 hereof designated for the payment of Bond Service Charges shall also be deposited in the Negative Arbitrage Account.

  • Moneys deposited to the Negative Arbitrage Account of the Project Fund pursuant to the Contingency Draw-Down Agreement, together with investment earnings thereon, which shall be retained therein, shall be transferred to the Funding Loan Payment Fund and applied pursuant to Section 7.4 on each Borrower Loan Payment Date to the extent necessary to enable the Fiscal Agent to pay interest due on the Funding Loan on such date.

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  • Any Extension Payment received by the Trustee in connection with an extension of the Mandatory Tender Date pursuant to Section 3.07 hereof shall also be deposited in the Negative Arbitrage Account.

  • Negative Arbitrage, 282 § 21.06Investment Funds282§ 21.07The World Bank Group Financing Sources282 [1] Global and Regional Multilateral Involvement282 [2] The International Bank for Reconstruction and Development (IBRD)282 Generally, 282 .

  • Bonds subject to redemption in accordance with this paragraph shall be redeemed from (i) amounts on deposit in the Collateral Fund, (ii) amounts on deposit in the Negative Arbitrage Account of the Bond Fund, if any, (iii) amounts on deposit in the Project Fund, and (iv) any other Eligible Funds available or made available for such purpose at the direction of the Borrower.

Related to Negative Arbitrage

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