Prohibited Investments Clause Samples
The Prohibited Investments clause defines specific types of investments or asset classes that are not allowed under an agreement or within a particular fund or portfolio. Typically, this clause lists restricted categories such as certain high-risk securities, derivatives, or investments in companies engaged in illegal activities, and may reference regulatory or policy guidelines to determine what is excluded. Its core practical function is to ensure compliance with legal, ethical, or risk management standards by preventing the allocation of funds to undesirable or non-permissible investments.
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Prohibited Investments. I acknowledge and agree that neither the Custodian nor I may terminate the Account upon 30 days notice written notice to the Administrator. the Administrator will make any determination as to whether any transaction or investment in Such notice will not be effective unless I designate a successor trustee, custodian, or my Account is prohibited under any other state or federal law. I accept full other account to which the assets of my Account will be transferred. I understand that the responsibility to ensure that the investments in my account comply with all applicable Custodian and the Administrator may resign by giving me written notice at least 30 days federal and state laws, regulations and requirements. Each investment direction I or my prior to the effective date of such resignation. I understand that if I fail to notify the Representative provides shall constitute a representation that such direction complies with Administrator of the appointment of such a successor trustee, custodian, or other all applicable federal and state laws, regulations and requirements. account within such 30 day period, then the assets held by the Custodian in my Account (whether in cash or personal or real property, wherever located, and regardless of value)
Prohibited Investments. No investments other than those described above shall constitute Approved Investments, and prohibited investments shall include, but not be limited to
i. Obligations issued by the central government of any OECD country and any of their respective agencies, instrumentalities or establishments (“OECD obligations”) (This prohibition does not include United States, which is an Approved Investment)
ii. Obligations issued by “supranational organizations”
iii. Asset-backed securities (excludes Asset-backed Commercial Paper)
iv. Collective investment vehicles sponsored or advised by Bank or a Bank Affiliate v. Common stock
Prohibited Investments. No part of the custodial funds shall be invested in life insurance contracts, nor may the assets of any Participant's Account be commingled with other property except in a common trust fund or common investment fund [within the meaning of Code Section 408(a)(5)]. All funds shall be invested in shares of such Mutual Funds as Participant shall designate.
Prohibited Investments. All other investments not specifically listed as Allowable Investments in Schedule A.
Prohibited Investments. In addition to any applicable insurance legislation prohibitions:
Prohibited Investments. I acknowledge and agree that neither the Custodian nor the Administrator will make any determination as to whether any transaction or investment in my Account is prohibited under any other state or federal law. I accept full responsibility to ensure that the investments in my account comply with all applicable federal and state laws, regulations and requirements. Each investment direction I or my Representative provides shall constitute a representation that such direction complies with all applicable federal and state laws, regulations and requirements. Prohibited Transactions: I understand that my account is subject to the provisions of Internal Revenue Code (IRC) Section 4975, which defines certain prohibited transactions. I acknowledge and agree that neither the Custodian nor the Administrator will make any determination as to whether any transaction or investment in my account is prohibited under sections 4975, 408(e) or 408A, or under any other state or federal law. I accept full responsibility to ensure that none of the investments in my account will constitute a prohibited transaction and that the investments in my account comply with all applicable federal and state laws, regulations and requirements. Tax Reporting and Statements: Custodian will provide ministerial custodial services and therefore WILL NOT provide any tax forms to the Account Owner or the IRS. The Account Owner and/or responsible party (who may be the Account Owner’s Representative) will be responsible to obtain tax reporting documents directly from investment sponsors/managers with whom the Account holds an investment interest (“Investment Sponsor”). Custodian will furnish Account Owners and/or Representatives annually with a statement regarding all the transactions and activities executed under this Agreement. Account Owner is responsible for the preparation and filing of any tax returns associated with the Account.
Prohibited Investments. The Executive shall not be an investor, shareholder, or partner in any enterprise, association, company, joint venture or partnership (each, an "Investment") if the Investment conflicts with the interests of the Company or any of its or their affiliated or related entities. The Executive shall identify and inform the Company of any potential conflicts that may arise as a result of an Investment by the Executive and the Executive shall, to the best of the Executive's efforts, reduce or eliminate any such conflict. The Company reserves the right, acting reasonably, to determine whether any Investment conflicts with or is otherwise inconsistent with the Company's interests in which case the Executive shall be required to immediately eliminate any such conflict.
Prohibited Investments. Notwithstanding anything to the contrary stated herein, no funds of Texas CLASS may be invested in the following or in any other type of investment prohibited by the Investment Act or other applicable law:
1. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal (IO’s);
Prohibited Investments. 1. Equity Securities
Prohibited Investments. The Management Company may not:
1. invest more than 10 % of the assets in securities and money market instruments other than those specified in Art. 26;
2. acquire precious metals or precious metal certificates;
3. perform uncovered short selling.