Responsibility for Special Subcustodians Clause Samples
The "Responsibility for Special Subcustodians" clause defines how responsibility and liability are allocated when a custodian appoints a third party, known as a special subcustodian, to hold certain assets. Typically, this clause outlines the circumstances under which the primary custodian is or is not liable for the actions or omissions of the special subcustodian, such as when the appointment is made at the direction of the client or due to specific asset requirements. Its core function is to clarify who bears the risk if the special subcustodian fails in their duties, thereby ensuring transparency and managing potential disputes over asset custody.
Responsibility for Special Subcustodians. Notwithstanding the provisions of Section 17.3 to the contrary, the Custodian shall not be liable to the Client for Losses suffered or incurred by the Client resulting from the acts or omissions of a Special Subcustodian, except to the extent such Losses are caused by the negligence, wilful default or fraud of the Custodian. In the event of any such Loss, the Custodian shall use commercially reasonable efforts to enforce such rights as it may have against any Special Subcustodian.
Responsibility for Special Subcustodians. Notwithstanding the provisions of Section 17.3 to the contrary, the Custodian shall not be liable to the Trust for Losses suffered or incurred by the Trust resulting from the acts or omissions of a Special Subcustodian, except to the extent such Losses are caused by the negligence, wilful default or fraud of the Custodian. In the event of any such Loss, the Custodian shall use commercially reasonable efforts to enforce such rights as it may have against any Special Subcustodian. Information Classification: Limited Access
Responsibility for Special Subcustodians. Notwithstanding the provisions of Section 17.3 to the contrary, the Custodian shall not be liable to the Client for Losses suffered or incurred by the Client resulting from the acts or omissions of a Special Subcustodian, except to the extent such Losses are caused by the negligence, wilful misconduct, bad faith or fraud of the Custodian. In the event of any such Loss, the Custodian shall use commercially reasonable efforts to enforce such rights as it may have against any Special Subcustodian. Information Classification: Limited Access Information Classification: Limited Access
Responsibility for Special Subcustodians. Notwithstanding the provisions of Section E.2.3 to the contrary, State Street shall not be liable to the Client for Losses suffered or Information Classification: Limited Access incurred by the Client resulting from the acts or omissions of a Special Subcustodian, except to the extent such Losses are caused by State Street’s Negligence, bad faith, reckless disregard, willful misconduct, willful default or fraud. In the event of any such Losses, State Street shall use commercially reasonable efforts to enforce such rights as it may have against any Special Subcustodian.