Common use of Contingent Liability Investments Clause in Contracts

Contingent Liability Investments. Contingent liability investments are derivatives under the terms of which the Client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of the Investment Manager’s position. Contingent liability investments which are margined require the Fund (or the Investment Manager if there are insufficient assets in the Fund) to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If the Investment Manager permits MSIM, as part of the Investment Guidelines, to trade for the Fund in futures, contracts for differences or write or otherwise deal on margin in options for the Fund, the Investment Manager may sustain a total loss of the margin which MSIM, on the Investment Manager’s behalf, deposits with a broker to establish or maintain a position. If the market moves against the Investment Manager, the Investment Manager may be called upon to pay out of the Fund (or the Investment Manager’s other assets if there are insufficient assets in the Fund) substantial additional margin at short notice to maintain the position. If the Investment Manager fails to do so within the time required, the Investment Manager’s position may be liquidated at a loss and the Investment Manager will be liable for any resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when the contract was entered into. Contingent liability investments which are not traded on or under the rules of a regulated market may expose the Investment Manager and the Fund to substantially greater risks.

Contingent Liability Investments. Contingent liability investments are derivatives under the terms of which the Client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of the Investment Manager’s 's position. Contingent liability investments which are margined require the Fund (or the Investment Manager if there are insufficient assets in the Fund) to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If the Investment Manager permits MSIM, as part of the Investment Guidelines, to trade for the Fund in futures, contracts for differences or write or otherwise deal on margin in options for the Fund, the Investment Manager may sustain a total loss of the margin which MSIM, on the Investment Manager’s 's behalf, deposits with a broker to establish or maintain a position. If the market moves against the Investment Manager, the Investment Manager may be called upon to pay out of the Fund (or the Investment Manager’s 's other assets if there are insufficient assets in the Fund) substantial additional margin at short notice to maintain the position. If the Investment Manager fails to do so within the time required, the Investment Manager’s 's position may be liquidated at a loss and the Investment Manager will be liable for any resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when the contract was entered into. Contingent liability investments which are not traded on or under the rules of a regulated market may expose the Investment Manager and the Fund to substantially greater risks.

Contingent Liability Investments. Contingent liability investments are derivatives under the terms of which the Client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls fails to be completed or upon the earlier closing out of the Investment Manager’s 's position. Contingent liability investments which are margined require the Fund (or the Investment Manager if there are insufficient assets in the Fund) to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If the Investment Manager permits MSIM, as part of the Investment Guidelines, to trade for the Fund in futures, contracts for differences or write or otherwise deal on margin in options for the Fund, the Investment Manager may sustain a total loss of the margin which MSIM, on the Investment Manager’s 's behalf, deposits with a broker to establish or maintain a position. If the market moves against the Investment Manager, the Investment Manager may be called upon to pay out of the Fund (or the Investment Manager’s 's other assets if there are insufficient assets in the Fund) substantial additional margin at short notice to maintain the position. If the Investment Manager fails to do so within the time required, the Investment Manager’s 's position may be liquidated at a loss and the Investment Manager will be liable for any resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when the contract was entered into. Contingent liability investments which are not traded on or under the rules of a regulated market may expose the Investment Manager and the Fund to substantially greater risks.

Contingent Liability Investments. Contingent liability investments are derivatives under the terms of which the Client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of the Investment Manager’s position. Contingent liability investments which are margined require the Fund (or the Investment Manager if there are insufficient assets in the Fund) to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If the Investment Manager permits MSIMthe Local Manager, as part of the Investment Guidelines, to trade for the Fund in futures, contracts for differences or write or otherwise deal on margin in options for the Fund, the Investment Manager may sustain a total loss of the margin which MSIMthe Local Manager, on the Investment Manager’s behalf, deposits with a broker to establish or maintain a position. If the market moves against the Investment Manager, the Investment Manager may be called upon to pay out of the Fund (or the Investment Manager’s other assets if there are insufficient assets in the Fund) substantial additional margin at short notice to maintain the position. If the Investment Manager fails to do so within the time required, the Investment Manager’s position may be liquidated at a loss and the Investment Manager will be liable for any resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when the contract was entered into. Contingent liability investments which are not traded on or under the rules of a regulated market may expose the Investment Manager and the Fund to substantially greater risks.