Funds in Trust Clause Samples

The 'Funds in Trust' clause establishes that certain monies are to be held by one party on behalf of another, typically in a separate account or under specific conditions. In practice, this means that funds received—such as deposits, advance payments, or escrowed amounts—are not immediately owned by the receiving party but are instead safeguarded until agreed-upon obligations are fulfilled. This arrangement ensures that the funds are protected and only released when contractual conditions are met, thereby providing security and building trust between the parties involved.
Funds in Trust. 6.1 Any funds received into trust on behalf of a Client from any cause may, in the exercise of the discretion of Moosa & ▇▇▇▇▇▇▇, be applied towards settlement of a Client's account, or retained in trust as a deposit for future Services to be rendered. 6.2 Unless Moosa & ▇▇▇▇▇▇▇ inc. is mandated in writing to invest trust monies for the benefit of a Client, it shall not be obliged to do so, and Client shall have no claim whatsoever against the firm for any loss that may be suffered. 6.3 Moosa & ▇▇▇▇▇▇▇ shall only be required to invest funds held in trust upon a Client signing the firm's standard investment mandate. We firm will then invest those funds in an interest-bearing call account, or such other account as per Client's instructions. Client will then benefit from the interest earned, after deduction of the firm's reasonable administrative charge and deduction of any percentage of the interest as accrues to the Fidelity Fund in terms of section 86(5)(b) of the Legal Practice Act. 6.4 Funds invested in terms of section 86(4) of the LPA will not be covered by the Fidelity Fund if – 6.4.1 the payment is not made for the purpose of investing such money on a temporary or interim basis only pending the conclusion or implementation of a Matter or transaction which already exists or is about to start at the time the investment is made; and 6.4.2 we do not exercise exclusive control over the account as trustee, agent, stakeholder or in any other fiduciary capacity. 6.5 To the fullest extent permitted in law, we will not be liable for any loss of whatsoever nature and kind that Client may suffer arising from any one or more of the following causes – 6.5.1 any act or omission of the banking institution concerned regarding any account; 6.5.2 any inability, delay or failure of the banking institution to repay the funds on demand; 6.5.3 the identity or choice of banking institution; 6.5.4 any interest or exchange rate fluctuation; and/or 6.5.5 any payment of funds into an incorrect banking account arising from any cause whatsoever including, but not limited to, incorrect banking details supplied by Client, fraud or any form of cybercrime.
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Funds in Trust. To the extent that Manager or Parent ever receives any proceeds of production from the Properties, any other proceeds of the Properties, or any other funds in any way accruing to the Properties or otherwise belonging to Company, Manager and Parent will account for such proceeds and funds and immediately pay the same into the Collateral Account and, pending such payments, will hold all such proceeds and funds in trust for Company and Holder Parties and will keep such funds separate from its own funds.
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Funds in Trust. To the extent ever received by Manager, it will handle, account for, and immediately pay over to the Company all proceeds of oil and/or gas production from the Properties, all other proceeds of the Properties, and all other funds in any way accruing to the Properties or otherwise belonging to Company or its affiliates or subsidiaries.
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Funds in Trust. Borrower covenants that it will hold in trust each advance hereunder for application to the items for which such advance was requested and approved, and will apply the funds to and in the amount of only those items set forth on each Project Draw Request.
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Funds in Trust. To the extent ever received by Manager, Manager will handle, account for, and pay over to Company all proceeds of production from the Properties, all other proceeds of the Properties, and all other funds in any way accruing to the Properties or otherwise belonging to Company, all in accordance with the requirements of the Transaction Documents. Pending such payments, Manager will hold all such funds in trust for Company and Lender and will keep such funds separate from Manager’s own funds.
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Funds in Trust. The parties acknowledge that the funds for Closing have been placed in trust and shall be released on Closing to the Vendor.
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Funds in Trust. If the Servicer receives any funds whatsoever arising from the Loans and their Related Security comprised in the Portfolio which belong to the Guarantor and are to be paid to the GDA Account (or, as applicable, the Standby GDA Account) pursuant to this Agreement or any of the other Transaction Documents or otherwise, it will hold such monies in trust for the Guarantor and will: (a) prior to a downgrade of the ratings of the Servicer by one or more Rating Agencies below the Servicer Deposit Threshold Ratings, transfer such monies on or before the next Guarantor Payment Date (i) at any time prior to a downgrade of the ratings of the Cash Manager by one or more Rating Agencies below the Cash Management Deposit Ratings, to the Cash Manager, and (ii) at any time following a downgrade of the ratings of the Cash Manager by one or more Rating Agencies below the Cash Management Deposit Ratings, directly into the GDA Account; and (b) in the event of a downgrade of the ratings of the Servicer by one or more Rating Agencies below the Servicer Deposit Threshold Ratings, transfer such monies (i) at any time prior to a downgrade of the ratings of the Cash Manager by one or more Rating Agencies below the Cash Management Deposit Ratings, to the Cash Manager, and (ii) at any time following a downgrade of the ratings of the Cash Manager by one or more Rating Agencies below the Cash Management Deposit Ratings, directly into the GDA Account, in either case within two Toronto Business Days of the collection and/or receipt thereof. The Servicer shall make each such payment to the GDA Account without any deduction as a result of any defence, set off right or counterclaim. Until paid into the GDA Account, the Servicer is entitled to commingle such funds with any other funds held by it.
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Funds in Trust. If a distribution is made to Payee that because of this Article IV should not have been made to Payee, Payee shall hold it in trust for holders of Senior Indebtedness of Maker and pay it over to them as their interests may appear.
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Related to Funds in Trust

  • Held in Trust Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company.

  • Moneys Held in Trust Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.

  • Paying Agent To Hold Assets in Trust The Trustee as Paying Agent shall, and the Company shall require each Paying Agent other than the Trustee to agree in writing that each Paying Agent shall, hold in trust for the benefit of the Holders of any Series of Securities or the Trustee all assets held by the Paying Agent for the payment of principal of, or interest or premium, if any, on, such Series of Securities (whether such assets have been distributed to it by the Company or any other obligor on such Series of Securities), and the Company and the Paying Agent shall notify the Trustee in writing of any Default by the Company (or any other obligor on such Series of Securities) in making any such payment. The Company at any time may require a Paying Agent to distribute all assets held by it to the Trustee and account for any assets disbursed, and the Trustee may, at any time during the continuance of any payment default with respect to any Series of Securities, upon written request to a Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and to account for any assets distributed. Upon distribution to the Trustee of all assets that shall have been delivered by the Company to the Paying Agent, the Paying Agent shall have no further liability for such assets.

  • Paying Agent to Hold Money and Securities in Trust Except as otherwise provided herein, prior to or on each due date of payments in respect of any series of Securities, the Company shall deposit with the Paying Agent with respect to such Securities a sum of money sufficient to make such payments when so becoming due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by such Paying Agent for the making of payments in respect of the Securities of such series and shall notify the Trustee of any default by the Company in making any such payment. At any time during the continuance of any such default, a Paying Agent shall, upon the written request of the Trustee, forthwith pay to the Trustee all money so held in trust with respect to such Securities. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent for a series of Securities, it shall segregate the money held by it as Paying Agent with respect to such Securities and hold it as a separate trust fund. The Company at any time may require a Paying Agent for a series of Securities to pay all money held by it with respect to such Securities to the Trustee and to account for any money disbursed by it. Upon doing so, such Paying Agent shall have no further liability for the money.

  • Moneys to be Held in Trust Subject to the provisions of Section 12.4, all moneys received by the Trustee or any paying agent shall, until used or applied as herein provided, be held in trust for the purpose for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee and any paying agent shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company. So long as no Event of Default shall have occurred and be continuing, all interest allowed on any such moneys shall be paid from time to time upon the written order of the Company, signed by the Chairman of the Board of Directors, the Chief Executive Officer, the President, a Managing Director, a Vice President, the Treasurer or an Assistant Treasurer of the Company.