Duties and Responsibilities of the Trustee; During Default; Prior to Default Clause Samples
This clause defines the specific obligations and powers of the trustee both before and after a default event occurs under a trust agreement or indenture. In normal circumstances, the trustee is typically required to perform only basic administrative duties and act with reasonable care, often relying on information provided by the parties. However, if a default occurs, the trustee’s responsibilities expand, requiring it to take more active steps to protect the interests of the beneficiaries or bondholders, such as enforcing remedies or providing notices. The core function of this clause is to clearly delineate the trustee’s role and standard of care in different situations, ensuring all parties understand when the trustee must act more assertively to address problems or defaults.
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Duties and Responsibilities of the Trustee; During Default; Prior to Default. With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default with respect to the Securities of a series has occurred (which has not been cured or waived) the Trustee shall exercise with respect to such series of Securities such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that
(a) prior to the occurrence of an Event of Default with respect to the Securities of any series and after the curing or waiving of all such Events of Default with respect to such series which may have occurred:
(i) the duties and obligations of the Trustee with respect to the Securities of any Series shall be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and
(ii) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such statements, certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein);
(b) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shal...
Duties and Responsibilities of the Trustee; During Default; Prior to Default. With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default with respect to the Securities of a series has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct.
Duties and Responsibilities of the Trustee; During Default; Prior to Default. In case an Event of Default with respect to the Securities of a series has occurred (which has not been cured or waived), the Trustee shall exercise with respect to such series of Securities such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs.
Duties and Responsibilities of the Trustee; During Default; Prior to Default. With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the curing or waiving of all Events of Default which may have occurred with respect to
Duties and Responsibilities of the Trustee; During Default; Prior to Default. With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default with respect to the Securities of a series has occurred (which has not been cured or waived) the Trustee shall exercise with respect to such series of Securities such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 23
Duties and Responsibilities of the Trustee; During Default; Prior to Default. With respect to the Holders of any series of Securities issued hereunder, the Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a particular series and after the curing or waiving of all Events of Default which may have occurred with respect to such series, undertakes to perform such duties and only such duties as are specifically set forth in this
Duties and Responsibilities of the Trustee; During Default; Prior to Default. Section 6.01 of the Indenture is hereby amended by adding the words “or a Covenant Breach” immediately after each instance of the words “an Event of Default” and by adding the words “and Covenant Breaches” immediately after each instance of the words “Events of Default.”
Duties and Responsibilities of the Trustee; During Default; Prior to Default. (a) The duties and responsibilities of the Trustee are as provided by the Trust Indenture Act and as set forth herein. Whether or not expressly so provided, every provision of the Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee is subject to this Article. 38
Duties and Responsibilities of the Trustee; During Default; Prior to Default. The Trustee, prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default has occurred (which has not been cured or waived) the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. Within 90 days after (i) any payment default known to it or (ii) receipt by the Trustee of written notice of the occurrence of any other default hereunder, the Trustee shall by the pertinent methods provided in Section 11.04 give notice to all Holders of such default, unless such default shall have been cured or waived;
Duties and Responsibilities of the Trustee; During Default; Prior to Default. SECTION 7.02. Certain Rights of the Trustee SECTION 7.03. Trustee Not Responsible for Recitals, Dispositions of Notes or Application of Proceeds Thereof SECTION 7.04. Trustee and Agents May Hold Notes; Collections, etc SECTION 7.05. Moneys Held by Trustee SECTION 7.06. Compensation and Indemnification of Trustee and its Prior Claim SECTION 7.07. Right of Trustee to Rely on Officers’ Certificate, etc SECTION 7.08. Conflicting Interests SECTION 7.09. Persons Eligible for Appointment as Trustee SECTION 7.10. Resignation and Removal; Appointment of Successor Trustee SECTION 7.11. Acceptance of Appointment by Successor Trustee SECTION 7.12. Merger, Conversion, Consolidation or Succession to Business of Trustee SECTION 7.13. Preferential Collection of Claims Against the Company SECTION 7.14. Reports by the Trustee SECTION 7.15. Trustee to Give Notice of Default, but May Withhold in Certain Circumstances SECTION 8.01. Discharge of Indenture SECTION 8.02. [Intentionally Omitted] SECTION 8.03. Paying Agent to Repay Monies Held SECTION 8.04. Return of Unclaimed Monies SECTION 9.01. Without Consent of Holders SECTION 9.02. With Consent of Holders SECTION 9.03. Compliance with Trust Indenture Act SECTION 9.04. Revocation and Effect of Consents, Waivers and Actions SECTION 9.05. Notation on or Exchange of Notes SECTION 9.06. Trustee to Sign Supplemental Indentures SECTION 9.07. Effect of Supplemental Indentures SECTION 10.01. Conversion Right and Conversion Price SECTION 10.02. Exercise of Conversion Right SECTION 10.03. Fractions of Shares SECTION 10.04. Adjustment of Conversion Price