Common use of Rights and Duties of the Bank Clause in Contracts

Rights and Duties of the Bank. 3.1. When providing Portfolio management service under the Agreement, the Bank shall have the right to perform all and any actions indicated in clause 2.7 of the Agreement at their own discretion. 3.2. When managing the Portfolio the Bank shall represent the Client in relations with the third parties by virtue of this Agreement. 3.3. The Bank shall provide reports to the Client according to Section 5 of the Agreement. 3.4. Upon investing assets of the Portfolio, the Bank shall act in a prudent manner ensuring reduction of risks, as well as quality and liquidity of investments. 3.5. Upon investing assets of the Portfolio the Bank shall acquire sufficiently wide information on acquired or potential investment objects and shall perform monitoring thereof. Before making any investment the Bank shall, within their limits, make the analysis, so as to determine whether the planned investment will facilitate the achievement of the Portfolio’s objective. 3.6. Upon investing assets of the Portfolio the Bank shall observe and ensure the adequate diversification of investments in various asset classes. 3.7. The Bank shall have the right to keep part of the Portfolio assets in cash to ensure the funds for covering the Management fee, the Performance fee, other costs and expenses related to the provision of the Portfolio management service, execution of the Portfolio assets redemption instructions, or in cases when due to any circumstances it is impossible to make the investments aimed at achieving the Portfolio objective.