Allocated Precious Metals Clause Samples
The 'Allocated Precious Metals' clause defines the treatment and handling of specific quantities of precious metals that are physically set aside and identified for a particular client or transaction. In practice, this means that the metals are stored separately from other holdings, with unique serial numbers or other identifiers, ensuring that the client has direct ownership of those exact items rather than a general claim to a pool of assets. This clause is essential for providing clients with certainty and security regarding their ownership, as it eliminates ambiguity about which assets belong to whom and protects against risks associated with unallocated or pooled storage.
Allocated Precious Metals. With respect to Allocated Precious Metals, the Custodian shall enter into a written agreement to direct that the Delegate be responsible for the failure of any Eligible Foreign Custodian or its agents to perform its obligations with respect to holding or returning of Allocated Precious Metals. Each Fund shall be responsible for any and all taxes, duties, costs, charges or fees (including, without limitation, insurance, delivery, collection and storage charges) which may be incurred by the Fund, the Delegate or the Custodian in connection with the holding of or transacting in Allocated Precious Metals.