Selection and Monitoring Clause Samples
The Selection and Monitoring clause establishes the procedures and standards for choosing and overseeing third parties, vendors, or subcontractors involved in a contract. Typically, it requires the contracting party to use due diligence in selecting qualified entities and to regularly review their performance to ensure compliance with contractual obligations and relevant laws. This clause helps mitigate risks by ensuring that only reliable and competent partners are engaged and that their ongoing activities are appropriately supervised, thereby reducing the likelihood of breaches or failures.
Selection and Monitoring. The Custodian will use reasonable skill, care and diligence in the selection, monitoring and continued utilization of Subcustodians by taking the following actions: (i) annually assess the financial condition of each Subcustodian by reviewing their publicly available financial information, (ii) on a daily basis monitoring the performance by each Subcustodian’ of its duties relative to the Services, and (iii) confirming on an annual basis that each Subcustodian is licensed to act as a subcustodian in its relevant market.
Selection and Monitoring. State Street will use reasonable skill, care and diligence in the selection, monitoring and continued utilization of Subcustodians by taking the following actions: (i) annually assess the financial condition of each Subcustodian by reviewing their publicly available financial information, (ii) on a daily basis monitoring the performance by each Subcustodian of its duties relative to the Custody Services, and (iii) confirming on an annual basis that each Subcustodian is licensed to act as a subcustodian in its relevant market.