AUTHORISED INVESTMENT Clause Samples

AUTHORISED INVESTMENT. ‌ 4.01 The Trust Bank shall invest in Authorised Investments, as provided herein, the amounts constituting Authorised Payments standing to the credit of the Designated Account. The Trust Bank shall not be bound to make investments under the Indian Trusts Act, 1882. 4.02 All Authorised Investments shall be made and/or realised by the Trust Bank in accordance with the Lender’s instructions and shall have a maturity date falling on or before the due dates for making Authorised Payments. 4.03 All instruments, documents of title or other documentary evidence of ownership with respect to Authorised Investments made out of the Designated Account will be held in the custody of the Trust Bank and in the trust of the Lender. 4.04 Upon the realisation of any investment made under this Agreement, the proceeds of realisation shall immediately to be credited to the Designated Account by the Trust Bank or immediately invested in another Authorised Investment in accordance with the Lender’s instructions. 4.05 In the event that the Lenders becomes aware that any Authorised Investment has ceased to be an Auhtorised Investment, the Lender shall immediately instruct the Trust Bank on a best effort basis to realise such Authorised Investment on its maturity date or earlier if possible. 4.06 Any reference in this Agreement to the balance standing to the credit of the Designated Account shall be deemed to include a reference to the principal amount of the Authorised Investments in which all, or part of, such balance is for the time being invested. 4.07 Any interest or other income paid in respect of Authorised Investments shall be paid to the Designated Account. 4.08 On receipt of a Notice of Default from the Lender, the Trust Bank shall realise the Authorised Investments, whether such investments have matured or not on a best efforts basis, and apply the proceeds as directed by the Lender.