CUSTODIAN RESPONSIBILITY Clause Samples
The Custodian Responsibility clause defines the obligations and duties of a party designated as the custodian of certain assets, documents, or property. Typically, this clause outlines the standards of care the custodian must uphold, such as safeguarding items, maintaining accurate records, and ensuring proper handling or transfer when required. Its core practical function is to clearly allocate responsibility for the protection and management of entrusted items, thereby reducing the risk of loss, damage, or mismanagement.
CUSTODIAN RESPONSIBILITY. You shall exercise reasonable care in the performance of your duties in accordance with the commercial standards and market practices in the relevant market. In respect of all your duties and obligations pursuant to the terms of this Agreement, you shall be liable to us only to the extent of our general damages suffered or incurred as a result of any act or omission of you or your officers, employees or agents which constitutes negligence or willful misconduct. General damages shall mean only those damages as directly and necessarily result from such act or omission without reference to any special conditions or circumstances of ours or of any transaction, whether or not you have been advised of any such special conditions or circumstances. Anything in this Agreement to the contrary notwithstanding, in no event shall you be liable to us under this Agreement for special, indirect or consequential loss or damage of any kind whatsoever, whether or not you are advised as to the possibility of such loss or damage and regardless of the form of action in which any such loss or damage may be claimed. You shall not be liable for the acts or omissions of (or the bankruptcy or insolvency of) any Depository. If, however, as a result of any act or omission of, or the bankruptcy or insolvency of, any Depository we suffer any loss or liability, you will take such steps with respect thereto in order to effect a recovery as you shall reasonably deem appropriate under the circumstances (including the bringing and settling of legal proceedings), provided that unless you shall be liable as set forth in the immediately preceding paragraph of this Agreement, for such loss or liability by virtue of the negligence or misconduct of you or your officers, employees or agents, the amount of any cost or expense in effecting, or attempting to effect, such recovery shall be for our account, and you shall have the right to charge such cost or expense to the Cash Account. We further agree to be bound by the Depository rules and procedures applicable to you as a participant in respect of any Financial Assets held by you in your account with such Depository. All collection and receipt of funds or Financial Assets and all payment and delivery of funds or Financial Assets under this Agreement shall be made by you as our agent, at our risk with respect to our actions or omissions and those of persons other than you, including, without limitation, the risk associated with the securities process...
CUSTODIAN RESPONSIBILITY. The Bank shall be obligated to indemnify the Customer for the loss of Financial Assets credited to the Custody Account resulting from (i) the negligence or willful misconduct of the Bank or the Bank's officers, employees or agents retained by the Bank to hold such Financial Assets; or (ii) burglary, robbery, hold-up, theft or mysterious disappearance, including loss by damage or destruction. In the event of a loss of Financial Assets held in the Custody Account for which the Bank is required to indemnify the Customer pursuant to the immediately preceding sentence, at the Bank's option but subject to mutual agreement of the parties, the Bank shall promptly either: a) replace such Financial Assets by, among other means, posting appropriate security or bond with the issuer(s) of such Financial Assets and obtaining their reissue; or 2) replace (i) the value thereof determined based upon the market value of the Financial Assets which are the subject of such loss as of the date of the discovery of such loss, and (ii) the value of any loss of rights or privileges resulting from the loss of such Financial Assets. The foregoing indemnity shall be the Bank's exclusive liability to the Customer for the Bank's loss of Financial Assets from the Custody Account. In respect of all the Bank's other duties and obligations pursuant to the terms of this Agreement, the Bank shall be liable to the Customer only to the extent of the Customer's general damages suffered or incurred as a result of any act, omission, or failure to act of the Bank or the Bank's officers, employees or agents which constitutes negligence or willful misconduct. General damages shall mean only those damages as directly and necessarily result from such act or omission without reference to any special conditions or circumstances of the Customer or of any transaction, whether or not the Bank has been advised of any such special conditions or circumstances. Anything in this Agreement to the contrary notwithstanding, in no event shall the Bank be liable to the Customer under this Agreement for special, indirect or consequential loss or damage of any kind whatsoever, whether or not the Bank is advised as to the possibility of such loss or damage and regardless of the form of action through which any such loss or damage may be claimed.
CUSTODIAN RESPONSIBILITY. You are authorized to take actions pursuant to this Agreement in accordance with your customary processing practices for customers similar to the undersigned and, in accordance with such practices, you may retain agents, including subsidiaries or affiliates of yours, to perform certain of such functions, notwithstanding that such retention may result in a gain or profit to you or to any of your subsidiaries or affiliates. All collection and receipt of funds or investments and all payment and delivery of funds or investments under this Agreement shall be made by you as the agent of the undersigned, for the account of, and at the risk of, the undersigned. You will be responsible for only those duties stated in this Agreement or expressly contained in instructions to perform the services described herein given to you pursuant to the provisions of this Agreement and, without limiting the foregoing, you shall have no duty or responsibility:
(a) to supervise the investment of, or make recommendations with respect to the purchase, retention or sale of, any investment relating to the Account;
(b) with regard to any investment in the Account as to which a default in the payment of principal or interest has occurred, to give notice of default, make demand for payment or take any other action with respect to such default;
(c) for any act or omission, or for the solvency or notice to the undersigned of the solvency, of any affiliated or unaffiliated sub-custodian, securities depository broker or agent selected by you (in the absence of negligence or willful misconduct by you in such selection) or by the undersigned or any other person to effect any transaction for the Account;
(d) to evaluate, or report to the undersigned regarding, the financial condition of any party to which you deliver investments or payment pursuant to this Agreement; or
(e) for any loss occasioned by delay in the actual receipt of notice by you or any payment, redemption or other transaction in respect to which you are authorized to take some action pursuant to this Agreement.