INDEBTEDNESS TO CUSTODIAN Clause Samples
The "Indebtedness to Custodian" clause defines the obligations of a party to repay any debts or liabilities owed to the custodian, typically arising from services such as safekeeping of assets, advances, or other financial accommodations provided by the custodian. This clause may specify the types of indebtedness covered, such as fees, charges, or overdrafts, and outline the terms for repayment or set-off against assets held by the custodian. Its core function is to ensure that the custodian is protected against losses by clearly establishing the client's responsibility to settle any outstanding amounts, thereby reducing financial risk for the custodian.
INDEBTEDNESS TO CUSTODIAN. If, in its sole discretion, the Custodian advances funds to the Trust to pay for the purchase of Securities, to cover an overdraft of the Trust's account with the Custodian, or to pay any other indebtedness to the Custodian, the Trust's indebtedness shall be deemed to be a loan by the Custodian to the Trust, payable on demand and bearing interest at the rate then charged by the Custodian for such loans; provided, however, that the Custodian shall give the Trust notice of any such advance that exceeds five percent of the value of the Securities and cash held by the Custodian at the time of the advance. The Trust hereby agrees that the Custodian shall have a continuing lien and security interest, to the extent of any such overdraft or indebtedness, in any property then held by the Custodian or its agents for the benefit of the Trust, or in which the Trust may have an interest. The Trust authorizes the Custodian, in its sole discretion at any time, to charge any such overdraft or indebtedness, together with interest due thereon, against any balance then credited to the Trust on the Custodian's books.
INDEBTEDNESS TO CUSTODIAN. The Trust hereby agrees that the Custodian shall have a continuing lien and security interest, to the extent of any such overdraft or indebtedness, in any property then held by the Custodian or its agents for the benefit of a Fund, or in which the Fund may have an interest.
INDEBTEDNESS TO CUSTODIAN. The Fund hereby agrees that the Custodian shall have a continuing lien and security interest, to the extent of any such overdraft or indebtedness, in any property then held by the Custodian or its agents for the benefit of the Fund, or in which the Fund may have an interest.
INDEBTEDNESS TO CUSTODIAN. The Companies hereby agree that the Custodian shall have a continuing lien and security interest, to the extent of any overdraft or indebtedness, including any amounts owed to the Custodian hereunder, in any property then held by the Custodian or its agents for the benefit of the Companies, or in which the Companies may have an interest.
INDEBTEDNESS TO CUSTODIAN. If, in its sole discretion, the Custodian advances funds to a Fund to pay for the purchase of Securities, to cover an overdraft of the Fund's account with the Custodian, or to pay any other indebtedness to the Custodian, the Fund's indebtedness shall be deemed to be a loan by the Custodian to the Fund, payable on demand and bearing interest at the rate specified in the separate [Overdraft and Compensating Balances Procedures][To be discussed.]; provided, however, that the Custodian shall give the Fund notice of any such advance that exceeds five percent of the value of the Securities and cash held by the Custodian at the time of the advance. The Fund hereby agrees that the Custodian shall have a continuing lien and security interest, to the extent of any such overdraft or indebtedness, in any property then held by the Custodian or its agents for the benefit of the Fund, or in which the Fund may have an interest. The Fund authorizes the Custodian, in its sole discretion at any time, to charge any such overdraft or indebtedness, together with interest due thereon, against any balance then credited to the Fund on the Custodian's books. Under no circumstances will one Fund be liable for the indebtedness of another Fund.