Common use of Establishment of Trust Fund Clause in Contracts

Establishment of Trust Fund. The Grantor and the Trustee hereby establish a standby trust fund, hereinafter the "Trust Fund," for the benefit of any and all third parties injured or damaged by [sudden and/or nonsudden] accidental occurrences arising from operation of the facility(ies) covered by this Agreement in the amounts of $___________ per occurrence and $__________ annual aggregate for sudden accidental occurrences and $___________ per occurrence and $ ___________ annual aggregate for nonsudden accidental occurrences, except that the Trust Fund is not established for the benefit of third parties for the following: (a) Bodily injury or property damage for which Grantor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that Grantor would be obligated to pay in the absence of the contractor or agreement; (b) Any obligation of Grantor under a workers' compensation, disability benefits, or unemployment compensation law or similar law; (c) Bodily injury to an employee of Grantor arising from, and in the course of, employment by the Grantor, or bodily injury to the spouse, child, parent, brother, or sister of that employee as a consequence of, or arising from, and in the course of employment by Grantor. This exclusion applies whether Grantor may be liable as an employer or in any other capacity, and to any obligation to share damages with or repay another person who must pay damages because of the injury to the employee or the spouse, child, parent, brother, or sister of the employee; (d) Bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, motor vehicle, or watercraft; or (e) Property damage to any of the following: (1) Any property owned, rented, or occupied by Grantor; (2) Premises that are sold, given away, or abandoned by Grantor if the property damage arises out of any part of those premises; (3) Property loaned to Grantor; (4) Personal property in the care, custody, or control of Grantor; or (5) That particular part of real property on which Grantor or any contractors or subcontractors working directly or indirectly on behalf of Grantor are performing operations, if the property damage arises out of these operations. In the event of combination with another mechanism for liability coverage, the Trust Fund shall be considered [insert "primary" or "excess"] coverage. The Trust Fund is established initially as consisting of the proceeds of the letter of credit deposited into the Trust Fund. Such proceeds and any other property subsequently transferred to the Trustee is collectively referred to as the Trust Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Trust Fund shall be held by the Trustee, in trust, as hereinafter provided.

Establishment of Trust Fund. The Grantor and the Trustee hereby establish a standby trust fund, hereinafter the fund ("Trust Fund," ") for the benefit of any and all third parties injured or damaged by [sudden and/or nonsudden] accidental occurrences arising from operation of the facility(ies) covered by this Agreement in the amounts of $___________ per occurrence and $__________ annual aggregate for sudden accidental occurrences and $___________ per occurrence and $ _$__________ annual aggregate for nonsudden accidental occurrences, except that the Trust Fund is not established for the benefit of third parties for the following: (a) Bodily injury or property damage for which Grantor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that Grantor would be obligated to pay in the absence of the contractor or agreement; (b) Any obligation of Grantor under a workers' compensation, disability benefits, or unemployment compensation law or similar law; (c) Bodily injury to an employee of Grantor arising from, and in the course of, employment by the Grantor, or bodily injury to the spouse, child, parent, brother, or sister of that employee as a consequence of, or arising from, and in the course of employment by Grantor. This exclusion applies whether Grantor may be liable as an employer or in any other capacity, and to any obligation to share damages with or repay another person who must pay damages because of the injury to the employee or the spouse, child, parent, brother, or sister of the employee; (d) Bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, motor vehicle, or watercraft; or (e) Property damage to any of the following: (1) Any property owned, rented, or occupied by Grantor; (2) Premises that are sold, given away, or abandoned by Grantor if the property damage arises out of any part of those premises; (3) Property loaned to Grantor; (4) Personal property in the care, custody, or control of Grantor; or (5) That particular part of real property on which Grantor or any contractors or subcontractors working directly or indirectly on behalf of Grantor are performing operations, if the property damage arises out of these operations. In the event of combination with another mechanism for liability coverage, the Trust Fund shall be considered [insert "primary" or "excess"] coverage. The Trust Fund is established initially as consisting of the proceeds of cash and securities, which are acceptable to the letter of credit deposited into the Trust Fund. Trustee, described in attached Exhibit A. Such proceeds property and any other property subsequently transferred conveyed by the Grantor to the Trustee is collectively referred to as the Trust Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Trust Fund shall be held by the Trustee, in trust, as hereinafter provided.

Establishment of Trust Fund. The Grantor and the Trustee hereby establish a standby trust fund, hereinafter the "Trust Fund," for the benefit of any and all third parties injured or damaged by [sudden and/or nonsudden] accidental occurrences arising from operation of the facility(ies) covered by this Agreement in the amounts of $___________ per occurrence and $__________ annual aggregate for sudden accidental occurrences and $___________ per occurrence and $ ___________ annual aggregate for nonsudden accidental occurrences, except that the Trust Fund is not established for the benefit of third parties for the following: (a) Bodily injury or property damage for which Grantor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that Grantor would be obligated to pay in the absence of the contractor or agreement; (b) Any obligation of Grantor under a workers' compensation, disability benefits, or unemployment compensation law or similar law; (c) Bodily injury to an employee of Grantor arising from, and in the course of, employment by the Grantor, or bodily injury to the spouse, child, parent, brother, or sister of that employee as a consequence of, or arising xxxxxxx from, and in the course of employment by GrantorXxxxxxx. This exclusion applies whether Grantor may be liable as an employer or in any other capacity, and to any obligation to share damages with or repay another person who must pay damages because of the injury to the employee or the spouse, child, parent, brother, or sister of the employee; (d) Bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, motor vehicle, or watercraft; or (e) Property damage to any of the following: (1) Any property owned, rented, or occupied by Grantor; (2) Premises that are sold, given away, or abandoned by Grantor if the property damage arises out of any part of those premises; (3) Property loaned to Grantor; (4) Personal property in the care, custody, or control of Grantor; or (5) That particular part of real property on which Grantor or any contractors or subcontractors working directly or indirectly on behalf of Grantor are performing operations, if the property damage arises out of these operations. In the event of combination with another mechanism for liability coverage, the Trust Fund shall be considered [insert "primary" or "excess"] coverage. The Trust Fund is established initially as consisting of the proceeds of the letter of credit deposited into the Trust Fund. Such proceeds and any other property subsequently transferred to the Trustee is collectively referred to as the Trust Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Trust Fund shall be held by the Trustee, in trust, as hereinafter provided.

Establishment of Trust Fund. The Grantor and the Trustee hereby establish a standby trust fund, hereinafter the fund ("Trust Fund," ") for the benefit of any and all third parties injured or damaged by [sudden and/or nonsudden] accidental occurrences arising from operation of the facility(ies) covered by this Agreement in the amounts of $___________ per occurrence and $__________ annual aggregate for sudden accidental occurrences and $___________ per occurrence and $ _$__________ annual aggregate for nonsudden accidental occurrences, except that the Trust Fund is not established for the benefit of third parties for the following: (a) Bodily injury or property damage for which Grantor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that Grantor would be obligated to pay in the absence of the contractor or agreement; (b) Any obligation of Grantor under a workers' compensation, disability benefits, or unemployment compensation law or similar law; (c) Bodily injury to an employee of Grantor arising from, and in the course of, employment by the Grantor, or bodily injury to the spouse, child, parent, brother, or sister of that employee as a consequence of, or arising xxxxxxx from, and in the course of employment by GrantorXxxxxxx. This exclusion applies whether Grantor may be liable as an employer or in any other capacity, and to any obligation to share damages with or repay another person who must pay damages because of the injury to the employee or the spouse, child, parent, brother, or sister of the employee; (d) Bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, motor vehicle, or watercraft; or (e) Property damage to any of the following: (1) Any property owned, rented, or occupied by Grantor; (2) Premises that are sold, given away, or abandoned by Grantor if the property damage arises out of any part of those premises; (3) Property loaned to Grantor; (4) Personal property in the care, custody, or control of Grantor; or (5) That particular part of real property on which Grantor or any contractors or subcontractors working directly or indirectly on behalf of Grantor are performing operations, if the property damage arises out of these operations. In the event of combination with another mechanism for liability coverage, the Trust Fund shall be considered [insert "primary" or "excess"] coverage. The Trust Fund is established initially as consisting of the proceeds of cash and securities, which are acceptable to the letter of credit deposited into the Trust Fund. Trustee, described in attached Exhibit A. Such proceeds property and any other property subsequently transferred conveyed by the Grantor to the Trustee is collectively referred to as the Trust Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Trust Fund shall be held by the Trustee, in trust, as hereinafter provided.