Common use of Cash Reserves and Cash Held Pending Distribution Clause in Contracts

Cash Reserves and Cash Held Pending Distribution. The Trustees, in their sole discretion, may, but are not obligated to, establish a cash reserve if (a) (i) a claim is asserted or likely to be asserted against the Trust and the Trust has received an opinion of counsel stating that the party or parties asserting the claim, or likely to assert the claim, have a reasonable probability of succeeding in such claim, or (ii) a claim against the Trust has been successful but such claim is not currently due and payable; and (b) the probable amount of such potential or successful claim is such that it cannot be satisfied out of the monthly income amount at the time that it is reasonably probable the claim will have to be paid. The Trustees may, in their sole discretion, at any time, decrease or eliminate any cash reserve previously established in the Trust. The Trustees shall be under no obligation to invest and shall not invest in any manner any cash being held by them for ultimate distribution.