Residual Income Clause Samples
The Residual Income clause defines the rights of a party to continue earning income from certain activities or assets after the initial transaction or agreement has concluded. Typically, this clause applies to situations such as licensing intellectual property, where the original owner receives ongoing payments based on future sales or usage, or in employment contracts where an employee may receive commissions on sales made after their departure. Its core practical function is to ensure that parties are fairly compensated for their contributions or assets over time, addressing the issue of ongoing value generation beyond the initial agreement.
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Residual Income. 16.3.1. This term covers items arising after the despatch of a completion message, and may cover income and capital items (such as interest accrued, dividends in cash or in specie, partial redemptions, and partial capital distributions).
16.3.2. How these will be treated should be determined by the Ceding Party implementing its policy for de minimis amounts.
16.3.3. Once the decision has been made the standard messages can be used to transfer the assets from the Ceding Party to the Acquiring Party and the Service Levels will then apply.
16.3.4. In some circumstances (e.g. a receipt of dividend and subsequently a receipt of a partial capital distribution) this cycle may have to be repeated several times.
Residual Income. On all performing and nonperforming IPF Loans --------------- made under the Program, Contractor shall be credited one half of the Residual Income (as hereinafter defined) less a mutually agreed upon reserve for uncollectible interest. The "Residual Income" shall be the accrued interest with respect to the performing and non-performing IPF Loans, less accrued interest on the outstanding principal balance on the then outstanding performing and non- performing IPF Loans in the amount of two percent (2%) per annum above the prime rate as published in the Money Rates column of The Wall Street Journal ("Prime ----------------------- Rate"), or, in the event such rate shall cease to be published, such rate as may be mutually agreed upon by Bank and Contractor in substitution therefor, as such prime rate of interest is published from time to time; provided, however, -------- ------- interest shall cease to accrue on such performing and non-performing IPF Loans on the Pay-Off Date (as defined in Section 6.1 hereof). For the purposes of this Agreement, "performing" IPF Loans are all loans except for non-performing IPF Loans as defined in Section 6 -7- hereof. Non-performing IPF Loans and charged-off IPF Loans shall be treated as provided in Section 6 hereof.