Disputed Proceeds Clause Samples
The "Disputed Proceeds" clause defines how funds or assets that are subject to a dispute between parties will be handled until the dispute is resolved. Typically, this clause outlines procedures such as holding the disputed amount in escrow or suspending distribution until a final determination is made, whether by agreement, arbitration, or court decision. Its core function is to prevent premature allocation of contested resources, thereby protecting the interests of all parties and ensuring that the resolution process is fair and orderly.
Disputed Proceeds. If Assignor receives any amounts of money from the sale of Assignee Minerals that is subject to controversy or, in the reasonable opinion of Assignor, possible controversy, Assignor shall promptly deposit the money with a Third Person escrow agent in a segregated interest-bearing account. Such amount shall not be treated as a portion of Assignee Proceeds so long as it remains with such escrow agent, but shall be treated as a portion of Assignee Proceeds, along with the accrued interest, when received from such escrow agent and paid over to Assignee.
Disputed Proceeds. If Assignor receives any amounts of money from the sale of Term Royalty Gas that is subject to controversy or, in the reasonable opinion of counsel for Assignor, possible controversy, Assignor shall promptly deposit the money with a Third Person escrow agent in a segregated interest-bearing account. Such amount shall not be treated as a portion of Term Royalty Proceeds so long as it remains with such escrow agent, but shall be treated as a portion of the Term Royalty Proceeds, along with the accrued interest, when received by Assignor from such escrow agent and paid over by Assignor to Assignee.