Cash holding limit Clause Samples
A cash holding limit clause sets a maximum amount of cash that a party is permitted to retain at any given time under an agreement. This clause typically applies to situations where funds are held temporarily, such as by an agent, trustee, or service provider, and may require that any excess cash above the specified limit be promptly transferred, invested, or otherwise managed according to the contract. Its core practical function is to minimize risk by preventing the accumulation of large, unmanaged cash balances, thereby reducing exposure to loss, mismanagement, or non-compliance with regulatory requirements.
Cash holding limit. The Parent shall ensure, to the extent it can lawfully do so (without breaching any director’s duties, regulatory requirement or legally binding agreement) that the members of the Group which are not Obligors will transfer to Obligors at any time any Cash or Cash Equivalent Investments (in aggregate) in excess of the amounts reasonably anticipated to be required by such members of the Group which are not Obligors in the following 12 Months (subject to a de minimis amount of €3,000,000 (or its equivalent in any other currency or currencies).