Designated Custodian Clause Samples
The Designated Custodian clause identifies a specific individual or entity responsible for holding and safeguarding certain assets, documents, or funds on behalf of the parties involved in an agreement. Typically, this custodian is tasked with managing these items according to the terms set out in the contract, such as releasing funds upon completion of agreed milestones or maintaining confidential documents until a triggering event occurs. This clause ensures that valuable or sensitive items are managed impartially and securely, reducing the risk of disputes or mismanagement between the parties.
Designated Custodian. In district buildings where there is only one custodian.
Designated Custodian. Designated Custodian represents and warrants to, and covenants with, Seller/Servicer and Freddie Mac as follows:
(i) This Agreement has been authorized and approved by all requisite corporate action on the part of Designated Custodian and, when executed and delivered by Designated Custodian, Seller/Servicer and Freddie Mac, will constitute a legal, valid and binding obligation of Designated Custodian, enforceable against Designated Custodian in accordance with its terms.
(ii) Designated Custodian has not executed and will not execute any agreement or obligation inconsistent herewith or with any of the transactions contemplated hereby.
(iii) Designated Custodian has complied, and at all times shall comply, with all applicable laws and regulations in connection with the transactions contemplated hereby.
Designated Custodian shall not fail to perform in accordance with this Agreement or any ▇▇▇▇▇▇▇ Mac requirement because Designated Custodian has not been compensated by Seller/Servicer, provided, however that Designated Custodian shall have the right to terminate this Agreement With Cause for non- payment of custodial fees by Seller/Servicer.