Common use of Cy Pres Recipient Clause in Contracts

Cy Pres Recipient. 1. Subject to Court approval, the Parties have agreed that a $1.75 million cy pres award will be provided to an organization that will be newly formed in accordance with the parties’ Term Sheet for Cy Pres Recipient and PSLF Project Proposal contained in Exhibit E. Plaintiffs will submit this proposal to the Court for the Court’s approval with the Motion for Preliminary Approval of this Agreement. 2. If the Court does not approve the Parties’ proposed Cy Pres Recipient, the parties will propose an alternate Cy Pres Recipient that is acceptable to all Parties. The selection criteria for any alternate proposed Cy Pres Recipient shall conform to applicable law and be guided by the criteria identified in governing case law, statute, or other binding legal authority. In no event shall Plaintiffs propose a Cy Pres Recipient in which any of the Parties or their counsel or family members have a financial, commercial, or other pecuniary interest. Nor shall Plaintiffs propose a Cy Pres Recipient that has filed litigation or an enforcement action directly adverse to Navient within the past five (5) years. If the Parties are unable, following reasonable efforts, to agree on any alternate proposed Cy Pres Recipient, Plaintiffs and Navient may identify alternative proposed recipients to the Court. The Parties agree that any selection made by the Court shall be final and binding on them. 3. As a condition to receiving a cy pres distribution under this Agreement, the Cy Pres Recipient has agreed to devote the funds to providing education and student loan counseling to borrowers employed in public service. The Parties agree that no portion of the cy pres award may be used by the Cy Pres Recipient to fund litigation. 4. The total distribution from the Settlement Fund to the Cy Pres Recipient will equal the total amount of the Settlement Fund, including any accrued interest, less the Fee Award and the Incentive Awards. 5. Because the Cy Pres Recipient will receive the remaining amount due after the Effective Date and after all other payment obligations are met, no portion of the Settlement Fund or interest thereon will revert to Navient. 6. The Settlement Administrator will make payment to the Cy Pres Recipient within five days after the Effective Date.