Common use of Liquidation of Custodial Account Clause in Contracts

Liquidation of Custodial Account. The Distributor has the right to direct the Custodian by a request in writing, or in such other manner as agreed upon by the Custodian, to liquidate the custodial account if the value of the account is below a minimum level established from time to time by the Distributor on a nondiscriminatory basis. Once the Custodian receives a request in writing, or in such other manner as agreed upon by the Custodian, from the Distributor, the Custodian will liquidate the assets in the custodial account as soon as practicable and distribute the proceeds to the Depositor in a lump sum in cash or in kind. The Custodian may reserve a portion of the account to pay for any fees, compensation, costs or expenses, or for any liabilities constituting a charge on or against the Custodian. If any assets remain after paying these items, the Custodian will pay the remainder to the Depositor. If the custodial account is liquidated as provided above, neither the Distributor nor the Custodian will be responsible or liable for any penalty or loss incurred by anyone because of the liquidation. In addition, after the account is liquidated, both the Distributor and the Custodian will be relieved from any further liability for this Agreement, the custodial account, and the custodial account assets.

Liquidation of Custodial Account. The Distributor has the right to direct the Custodian by a request in writing, or in such other manner as agreed upon by the Custodian, written order to liquidate the custodial account if the value of the account is below a minimum level established from time to time by the Distributor on a nondiscriminatory basis. Once the Custodian receives a request in writing, or in such other manner as agreed upon by the Custodian, written liquidation order from the Distributor, the Custodian will liquidate the assets in the custodial account as soon as practicable and distribute the proceeds to the Depositor in a lump sum in cash or in kind. The Custodian may reserve a portion of the account to pay for any fees, compensation, costs or expenses, or for any liabilities constituting a charge on or against the Custodian. If any assets remain after paying these items, the Custodian will pay the remainder to the Depositor. If the custodial account is liquidated as provided above, neither the Distributor nor the Custodian will be responsible or liable for any penalty or loss incurred by anyone because of the liquidation. In addition, after the account is liquidated, both the Distributor and the Custodian will be relieved from any further liability for this Agreement, the custodial account, and the custodial account assets.