Common use of Establishment of the Account Clause in Contracts

Establishment of the Account. ‌ 2.01 The Borrower hereby settles on the Designated Account with the Trust Bank the sum of Rs. 10000/-.(Rupees Ten Thousand only). The Borrower also hereby declares that all right, title and interest in the Designated Account and the Authorised Investments made from the Designated Account shall be vested in the Trust Bank and held in trust for the Lender in accordance with the terms of this Agreement and as their respective interests are provided for herein. The Trust Bank hereby accepts the above amount of Rs. 10000/- (Rupees Ten Thousand only) in the trust hereby declared and provided upon the terms and conditions set forth in this Agreement. Amounts deposited in the Designated Account from time to time shall be held in trust, received and applied as provided in this Agreement. No person other than the Lender shall have any rights hereunder as the beneficiaries of or as third party beneficiaries under this Agreement. 2.02 The Trust Bank shall, save as otherwise provided herein, maintain the Designated Account in accordance with the terms of this Agreement and its usual practices and applicable regulations and, if permitted by applicable regulations, pay the maximum rate of interest payable to its customers on the balances including balances in the Debt Service Reserve Account from time to time as agreed between the Lender, the Borrower and the Trust Bank from time to time. 2.03 The Trust Bank and the Lender shall agree (after consultation with the Borrower) the Designated mandates, terms and conditions and operating procedures for the Designated Account but in the event of any inconsistency between this Agreement and such mandates, terms and conditions or procedures, this Agreement shall prevail. 2.04 The Lender shall be permitted to instruct the Trust Bank to make transfers to and from the designated Account at any time. 2.05 Notwithstanding any of the other provisions of this Agreement, the Lender may in the event of default instruct the Trust Bank to withdraw amounts from the Designated Account.

Appears in 5 contracts

Samples: Trust and Retention Account Agreement, Trust and Retention Account Agreement, Trust and Retention Account Agreement

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