Common use of Conditions to Advancement Clause in Contracts

Conditions to Advancement. Funds shall be advanced to the Trustee pursuant to this Section 3 if (1) the Trust is insured against losses arising by reason of any such lawful advancements to the Trustee; (2) a determination is made by the vote of a majority of a quorum of Independent Trustees, or by Independent Counsel in a written opinion, based on a review of the readily available facts then known (as opposed to a full trial-type inquiry), that there is reason to believe that the Trustee ultimately will be found to be entitled to indemnification pursuant to Section 1, or (3) in the absence of insurance or such a determination by Independent Trustees or Independent Counsel, such undertaking as required by Paragraph 3(a) above is secured by a surety bond or other appropriate security provided by the Trustee. In any such determination by the Independent Trustees or Independent Counsel pursuant to subpart (2) of this subparagraph, the Trustee shall be afforded a rebuttable presumption that the Trustee did not engage in Disabling Conduct.

Conditions to Advancement. Funds shall be advanced to the Trustee Director pursuant to this Section 3 if (1) the Trust Corporation is insured against losses arising by reason of any such lawful advancements to the TrusteeDirector; (2) a determination is made by the vote of a majority of a quorum of Independent TrusteesDirectors, or by Independent Counsel in a written opinion, based on a review of the readily available facts then known (as opposed to a full trial-type inquiry), that there is reason to believe that the Trustee Director ultimately will be found to be entitled to indemnification pursuant to Section 1, or (3) in the absence of insurance or such a determination by the Independent Trustees Directors or Independent Counsel, such undertaking as required by Paragraph 3(a) above is secured by a surety bond or other appropriate security provided by the TrusteeDirector. In any such determination by the Independent Trustees Directors or Independent Counsel pursuant to subpart (2) of this subparagraph, the Trustee any Director shall be afforded a rebuttable presumption that the Trustee Director did not engage in Disabling Conduct.