Common use of Cash Reserves Clause in Contracts

Cash Reserves. (a) The Trustee is authorized to retain cash from the distributions the trust receives (i) in an amount not to exceed $1.0 million at any one time to be used by the Trust in the event that its cash on hand (including available cash reserves) is not sufficient to pay ordinary course administrative expenses as they become due; provided, that, until the Monthly Period ended May 31, 2019, the Trustee shall not retain any cash from monthly distributions pursuant to this clause and (ii) in such amounts as the Trustee in its discretion deems appropriate to pay for future liabilities of the Trust. Commencing with the Monthly Period ended May 31, 2019 and continuing until the reserve described in clause (i) equals or exceeds $1.0 million, the Trustee shall retain cash from distributions in such amount as the Trustee determines but not less than $25,000 per month or more than $100,000 per month and, at such time as such reserve equals or exceeds $1.0 million, the Trustee on behalf of the Trust shall promptly release the Letter of Credit.