Irrevocable Fund Sample Clauses

An Irrevocable Fund clause establishes that certain funds set aside for a specific purpose cannot be withdrawn, altered, or reclaimed by the party that deposited them. In practice, this means that once the funds are placed into the designated account or trust, they are locked in and must be used solely for the agreed-upon objective, such as securing a payment obligation or guaranteeing performance under a contract. This clause ensures that the recipient or beneficiary has reliable access to the funds, thereby reducing the risk of non-payment or default and providing assurance to all parties involved.