Common use of Investment and Safekeeping of Custodial Trust Assets Clause in Contracts

Investment and Safekeeping of Custodial Trust Assets. 2.8.1 The Custodial Trust Assets, until sold as provided herein and in the Plan, shall be held in trust and segregated. The Environmental Custodial Trust Trustee shall be under no liability for interest or producing income on any moneys received by the Environmental Custodial Trust hereunder and held for distribution or payment as provided in this Agreement, except as such interest is actually received by the Environmental Custodial Trust. Investments of any moneys held by the Environmental Custodial Trust shall be administered in a manner consistent with the standards and requirements applicable to a trustee in connection with a Chapter 7 liquidation; provided, however, that the right and power of the Environmental Custodial Trust to invest the Custodial Trust Assets, the Custodial Trust Proceeds, or any income earned by the Environmental Custodial Trust, shall be limited to the right and power to invest such assets (pending periodic distributions in accordance with Article 3 hereof) in demand and time deposits, such as certificates of deposit, in banks or other savings institutions whose deposits are federally insured, or other liquid investments, such as Treasury bills; and provided further, that the scope of any such permissible investments shall be limited to include only those investments, or shall be expanded to include any additional investments, as the case may be, that a liquidating trust, within the meaning of Treasury Regulation section 301.7701-4(d), may be permitted to hold, pursuant to Treasury Regulations, or any modification in the IRS guidelines, whether set forth in IRS rulings, other IRS pronouncements or otherwise (although the Parties acknowledge and agree that the Environmental Custodial Trust is properly characterized for federal tax purposes as a qualified settlement fund within the meaning of Section 1.468B-1 of the Treasury Regulations, and not as a liquidating trust under Section 301.7701-4(d) of the Treasury Regulations). 2.8.2 The Environmental Custodial Trust Trustee is expressly prohibited from holding any or all of the Funds provided for Environmental Costs in a common, commingled or collective trust fund and from holding any or all of the Funds in a common, commingled or collective trust fund with the assets of any other entity. However, the Funds provided for Administrative Expenses can be held in one account. 2.8.3 Nothing in this Section 2.8 shall be construed as authorizing the Environmental Custodial Trust Trustee to cause the Environmental Custodial Trust to carry on any business or to divide the gains therefrom, including without limitation, the business of an investment company, a company “controlled” by an “investment company,” required to register as such under the Investment Company Act of 1940, as amended. The sole purpose of this Section 2.8 is to authorize the investment of the funds in the Custodial Trust Accounts or any portions thereof as may be reasonably prudent pending use of the proceeds for the purposes of the Environmental Custodial Trust.

Investment and Safekeeping of Custodial Trust Assets. 2.8.1 2.7.1 The Custodial Trust AssetsAccount, until sold as provided herein and in initial funding consisting of Fifty-Two Million Eighty Thousand Dollars ($52,080,000), reduced pursuant to Paragraph 12(e) of the PlanSettlement Agreement, shall be held in trust and segregatedby a Corporate Trustee selected by the Beneficiaries. The Environmental Custodial Trust Trustee shall be under no liability for interest or producing income on any moneys received by the Environmental Texas Custodial Trust hereunder and held for distribution or payment as provided in this Agreement, except as such interest is shall actually be received by the Environmental Texas Custodial Trust. Investments of any moneys held by the Environmental Texas Custodial Trust shall be administered in a manner consistent with the standards and requirements applicable to a trustee in connection with a Chapter 7 liquidation; provided, however, that the right and power of the Environmental Texas Custodial Trust to invest the Custodial Trust Assets, the Custodial Trust Proceeds, or any income earned by the Environmental Texas Custodial Trust, shall be limited to the right and power to invest such assets (pending periodic distributions in accordance with Article 3 hereof) in demand and time deposits, such as certificates of deposit, in banks or other savings institutions whose deposits are federally insured, or other temporary liquid investments, such as Treasury bills; and provided further, that the scope of any such permissible investments shall be limited to include only those investments, or shall be expanded to include any additional investments, as the case may be, that a liquidating trust, within the meaning of Treasury Regulation section 301.7701-4(d), may be permitted to hold, pursuant to Treasury Regulations, or any modification in the IRS guidelines, whether set forth in IRS rulings, other IRS pronouncements or otherwise (although the Parties acknowledge and agree that the Environmental Texas Custodial Trust is properly characterized for federal tax purposes as a qualified settlement fund within the meaning of Section 1.468B-1 of the Treasury Regulations, and not as a liquidating trust under Section 301.7701-4(d) of the Treasury Regulations). 2.8.2 2.7.2 The Environmental Custodial Trust Trustee is expressly prohibited from holding any or all of the Funds provided for Environmental Costs Funding or Custodial Trust Proceeds in a common, commingled commingled, or collective trust fund fund, and from holding any or all of the Funds Funding or Custodial Trust Proceeds in a common, commingled commingled, or collective trust fund with the assets of any other entity. However, the Funds provided for Administrative Expenses can be held in one account. 2.8.3 2.7.3 Nothing in this Section 2.8 section shall be construed as authorizing the Environmental Custodial Trust Trustee to cause the Environmental Texas Custodial Trust to carry on any business or to divide the gains therefrom, including without limitation, the business of an investment company, a company “controlled” by an “investment company,” , or a company required to register as such under the Investment Company Act of 1940, as amended. The sole purpose of this Section 2.8 section is to authorize the investment of the funds in the Custodial Trust Accounts Account or any portions thereof as may be reasonably prudent pending use of the proceeds for the purposes of the Environmental Texas Custodial Trust.

Investment and Safekeeping of Custodial Trust Assets. 2.8.1 2.7.1 The Custodial Trust AssetsAccount, until sold as provided herein and in initial funding consisting of Fifty-Two Million Eighty Thousand Dollars ($52,080,000), reduced pursuant to Paragraph 12(e) of the PlanSettlement Agreement, shall be held in trust and segregatedby a Corporate Trustee [name of bank selected] defined pursuant to the Bank Trust Agreement attached as Exhibit . (Incorporated by reference as if fully set forth herein). The Environmental Custodial Trust Trustee shall be under no liability for interest or producing income on any moneys received by the Environmental Texas Custodial Trust hereunder and held for distribution or payment as provided in this Agreement, except as such interest is shall actually be received by the Environmental Texas Custodial Trust. Investments of any moneys held by the Environmental Texas Custodial Trust shall be administered in a manner consistent with the standards and requirements applicable to a trustee in connection with a Chapter 7 liquidation; provided, however, that the right and power of the Environmental Texas Custodial Trust to invest the Custodial Trust Assets, the Custodial Trust Proceeds, or any income earned by the Environmental Texas Custodial Trust, shall be limited to the right and power to invest such assets (pending periodic distributions in accordance with Article 3 hereof) in demand and time deposits, such as certificates of deposit, in banks or other savings institutions whose deposits are federally insured, or other temporary liquid investments, such as Treasury bills; and provided further, that the scope of any such permissible investments shall be limited to include only those investments, or shall be expanded to include any additional investments, as the case may be, that a liquidating trust, within the meaning of Treasury Regulation section 301.7701-4(d), may be permitted to hold, pursuant to Treasury Regulations, or any modification in the IRS guidelines, whether set forth in IRS rulings, other IRS pronouncements or otherwise (although the Parties acknowledge and agree that the Environmental Texas Custodial Trust is properly characterized for federal tax purposes as a qualified settlement fund within the meaning of Section 1.468B-1 of the Treasury Regulations, and not as a liquidating trust under Section 301.7701-4(d) of the Treasury Regulations). 2.8.2 2.7.2 The Environmental Custodial Trust Trustee is expressly prohibited from holding any or all of the Funds provided for Environmental Costs Funding or Custodial Trust Proceeds in a common, commingled commingled, or collective trust fund fund, and from holding any or all of the Funds Funding or Custodial Trust Proceeds in a common, commingled commingled, or collective trust fund with the assets of any other entity. However, the Funds provided for Administrative Expenses can be held in one account. 2.8.3 2.7.3 Nothing in this Section 2.8 section shall be construed as authorizing the Environmental Custodial Trust Trustee to cause the Environmental Texas Custodial Trust to carry on any business or to divide the gains therefrom, including without limitation, the business of an investment company, a company “controlled” by an “investment company,” , or a company required to register as such under the Investment Company Act of 1940, as amended. The sole purpose of this Section 2.8 section is to authorize the investment of the funds in the Custodial Trust Accounts Account or any portions thereof as may be reasonably prudent pending use of the proceeds for the purposes of the Environmental Texas Custodial Trust.