Common use of Creation of Reserve Clause in Contracts

Creation of Reserve. Notwithstanding anything in this Agreement to the contrary, at and after the Transfer Time, the Trustees shall have the right to establish and maintain a reserve of sufficient funds (the “Contingency Reserve”) as the Trustees shall determine are reasonably necessary or appropriate for the Liquidating Trust: (i) to meet, pay, discharge and perform all of the Liabilities; (ii) to maintain the value of the Liquidating Trust Assets during the term of the Liquidating Trust (including taxes imposed or which may be imposed on the Liquidating Trust or in respect of Liquidating Trust Assets); and (iii) to make the payments and satisfy the existing and anticipated future obligations, costs, expenses and liabilities of the Liquidating Trust. The Contingency Reserve shall be in cash or cash equivalents in the form of instruments or deposits in bank, brokerage or other accounts in the name of the Trustees or the Liquidating Trust as permitted under Section 4.4(o) and Section 4.13, or other as determined by the Trustees in their sole discretion, and no payments or withdrawals from the Contingency Reserve shall be made except for purposes set forth in clauses (i) and (ii) in the preceding sentence or to transfer the interest earned or other sums realized on the Contingency Reserve to other accounts or instruments of the Liquidating Trust. In no event shall the Liquidating Trust receive or retain cash in excess of a reasonable amount to meet, pay, discharge and perform all of the Liabilities and any other claims, causes of action and contingent liabilities.

Creation of Reserve. Notwithstanding anything in this Agreement to the contrary, at and after the each Transfer Time, the Trustees shall have the right to establish and maintain a reserve of sufficient funds (the “Contingency Reserve”) as the Trustees shall determine are reasonably necessary or appropriate for the Liquidating Trust: (i) to meet, pay, discharge and perform all of the Liabilities; (ii) to maintain the value of the Liquidating Trust Assets during the term of the Liquidating Trust (including taxes imposed or which may be imposed on the Liquidating Trust or in respect of Liquidating Trust Assets); and (iii) to make the payments and satisfy the existing and anticipated future obligations, costs, expenses and liabilities of the Liquidating Trust. The Contingency Reserve shall be in cash or cash equivalents in the form of instruments or deposits in bank, brokerage or other accounts in the name of the Trustees or the Liquidating Trust as permitted under Section 4.4(o) and Section 4.13, or other as determined by the Trustees in their sole discretion, and no payments or withdrawals from the Contingency Reserve shall be made except for purposes set forth in clauses (i) and (ii) in the preceding sentence or to transfer the interest earned or other sums realized on the Contingency Reserve to other accounts or instruments of the Liquidating Trust. In no event shall the Liquidating Trust receive or retain cash in excess of a reasonable amount to meet, pay, discharge and perform all of the Liabilities and any other claims, causes of action and contingent liabilities.