Advance Credit Balance. Means a running balance (which balance may never be less than zero) that may be increased or decreased, as applicable, by the following procedures: i. On any date a Collateral Debt Security (or multiple Collateral Debt Securities) is purchased by the Issuer and the portion of the Purchase Price funded by an Advance is less than the marginal increase of the Maximum Advance before and after giving effect to such purchase, then the excess of the marginal increase over the Advance used for
... such purchase will be added to the Advance Credit Balance. ii. On any date that a Moody's Rating is assigned to a Collateral Debt Security by the receipt of a rating by Moody's pursuant to clause (g) of the definition of Moody's Rating and the Moody's Rating actually assigned is different than the Interim Rating deemed pursuant to such clause (g), an amount designated by NewStar will be added to the Advance Credit Balance not to exceed (x) the Maximum Advance plus Cash on deposit in the Collateral Account representing Principal Proceeds minus (y) outstanding Advances, after giving effect to such assigned Moody's Rating. For the avoidance of doubt, if (x) minus (y) results in a negative number, the Advance Credit Balance will be reduced by such absolute amount thereof. iii. On any date that the Issuer (or the Collateral Manager on behalf of the Issuer) requests an Advance and designates the Advance (or a portion of such Advance) as an Advance Credit Balance withdrawal (an "Advance Credit Balance Withdrawal"), the proceeds thereof will be transferred to NewStar (or, in the circumstances contemplated by Section 6.4, deposited into the Collateral Account) and the Advance Credit Balance will be reduced accordingly by the amount of each such withdrawal; provided, any Advance will be permitted to be made in accordance with this clause only if, after giving effect to such withdrawal, the Advance Credit Balance is greater than or equal to zero; provided further, that no Limited Recourse Event has occurred.
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