Common use of PROHIBITION OF DIVERSION Clause in Contracts

PROHIBITION OF DIVERSION. Section 4.1. Except as provided in Section 4.2 herein, at no time prior to the satisfaction of all liabilities with respect to Participants and their beneficiaries under the Plan shall any part of the corpus or income of the Fund be used for, or diverted to, purposes other than for the exclusive benefit of Participants or their beneficiaries, or for defraying reasonable expenses of administering the Plan. Section 4.2.1. Notwithstanding the provisions of Section 4.1, but subject to the provisions of Section 4.2.2 herein, contributions made by the Employer under the Plan shall be returned to the Employer under the following conditions and only as the Trustee is instructed in writing by the Committee: (a) If a contribution is made by mistake of fact, such contribution shall be returned to the Employer within one year of the payment of such contributions; (b) To the extent that contributions to the Plan are specifically conditioned upon their deductibility under the Code, and a deduction is disallowed for any such contribution, it shall be returned to the Employer within one year after the disallowance of the deduction; and (c) To the extent that contributions to the Plan are specifically conditioned on initial qualification of the Plan under the Code, and the Plan is determined to be disqualified, contributions and the earnings thereon made in respect of any period subsequent to the effective date of such disqualification shall be returned to the Employer within one year after the date of denial of qualification, provided that the Employer makes timely application to the Internal Revenue Service for a determination of the qualified status of the Plan.