Common use of Reservation of Funds Clause in Contracts

Reservation of Funds. In the event of any transfers to successor trustees or custodians or distributions to a Depositor, the Custodian shall be authorized to reserve such sum of money or securities as it may deem necessary or advisable for payment of all fees, compensation, costs and expenses, or for coverage of any other liabilities constituting a charge or potential charge against the Depositor’s Custodial Account and/or against the Custodian. The balance of any such reserve remaining after the payment of all such items shall be paid to such successor trustee or custodian or the Depositor, whichever is applicable.