Liquidating Fund Termination Sample Clauses
The Liquidating Fund Termination clause defines the process and conditions under which a liquidating fund is formally dissolved. Typically, this clause outlines the steps for distributing remaining assets to stakeholders, settling outstanding obligations, and filing any necessary legal documents to complete the termination. Its core practical function is to ensure an orderly and transparent winding up of the fund’s affairs, thereby protecting the interests of all parties involved and minimizing potential disputes.
Liquidating Fund Termination. (i) Notwithstanding any provision to the contrary herein, in the event a Participating Fund liquidates in a corporate dissolution taxed under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to 11 U.S.C. § 503(b)(1)(A) (a “Liquidating Fund”), the Board of such Participating Fund may terminate and liquidate this Plan (a “Liquidating Fund Termination”) pursuant to the corporate dissolution exception of Treas. Reg. § 1.409A-3(j)(4)(ix)(A) with respect to Accounts attributable to the deferral of Compensation from such Participating Fund (“Affected Accounts”) by current or former members of the Board of such Participating Fund (“Affected Participants”).
(ii) In the event of a Liquidating Fund Termination, the value of the Affected Accounts of the Affected Participants shall be paid in a lump sum no later than the last day of the calendar year in which the Liquidating Fund Termination occurs or, if later, the last day of the first calendar year in which the payment is administratively feasible.
(iii) Except as set forth above, a Liquidating Fund Termination shall not otherwise affect the Plan, and in particular shall have no effect on any Accounts other than the Affected Accounts.