Common use of Rights in the Policies Clause in Contracts

Rights in the Policies. The Employee will have the sole right to designate the beneficiary for a specified amount of the death proceeds of the Policies. The Plan Sponsor will have and may exercise, except as limited hereinafter, all ownership rights in the Policies. The Plan Sponsor will not without the written consent of the Employee assign its rights in the Policies, other than for the purpose of obtaining a loan against the Policies, to anyone other than the Employee. The Plan Sponsor will not take any action in dealing with the Carriers that would impair any right or interest of the Employee in the Policies. The Plan Sponsor will have the right to borrow from the Carriers, and to secure that loan by the Policies an amount which together with the unpaid interest accrued thereon, will at no time exceed the lesser of (a) the Plan Sponsor's Interest in the Policies and (b) the Loan Value of the Policies. During the Employee’s life time “The Plan Sponsor's Interest In The Policies” will mean, at any time at which the value of such interest is to be determined under this Agreement, the Cash Value of the Policies at such time, reduced by any then outstanding Policy Loan Balance with respect to any loans made or charged automatically against the Policies by the Plan Sponsor.