Common use of Investment Contributions Clause in Contracts

Investment Contributions. (a) At the direction of the Depositor (or the direction of the beneficiary upon the Depositor's death), and in accordance with the Custodian’s obligations under this Agreement, the Custodian shall invest all contributions to the Custodial Account, and earnings thereon, in investments that are acceptable to the Custodian, and that are considered administratively feasible by the Custodian, which may include, but are not limited to, marketable securities traded on a recognized exchange or "over the counter" (excluding any securities issued by the Custodian), covered call options, certificates of deposit, real estate, deeds of trust, mortgages, unsecured notes, limited partnerships, limited liability companies, private stock, other private placement offerings, and other investments to which the Custodian consents, in such amounts as are specifically selected and specified by the Depositor in a Direction of Investment, without any duty to diversify and without regard to whether such property is authorized by the laws of any jurisdiction as a trust investment. The Custodian shall be responsible for the execution of such orders and for maintaining adequate records thereof. However, if any such orders are not received as required, or, if received, are unclear in the opinion of the Custodian, or if there is insufficient Undirected Cash in the Custodial Account to comply with such orders, all or a portion of the contribution may be held un-invested without liability to Custodian for loss of income or appreciation, and without liability to Custodian for interest pending receipt of such orders or clarification, or the contribution may be returned to the Depositor. The Custodian shall have no duty other than to follow the written investment directions of the Depositor and shall be under no duty to question said instructions and shall not be liable for any investment losses sustained by the Depositor under any circumstances.