Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules: a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day. b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred: (i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets. (ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account. c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party. d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, by 11:00 a.m. (New York time) on the date such issuance is to take place: (i) the Custodian shall have provided confirmation to the Settlement Agent that the EFPs in connection with any CERFs included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and (ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position); and (iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied. e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian. f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 7 contracts
Samples: Authorized Participant Agreement (iShares GS Commodity Non Energy Indexed Investing Pool LLC), Authorized Participant Agreement (iShares GS Commodity Energy Indexed Investing Pool LLC), Authorized Participant Agreement (iShares GS Commodity Livestock Indexed Investing Pool LLC)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares of a Trust shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the applicable Trust or Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the applicable Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, by 11:00 a.m. (New York time) on the date such issuance is to take place:
(i) the Custodian shall have provided confirmation to the Settlement Agent that the EFPs in connection with any CERFs included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the applicable Investing Pool of establishing the corresponding CERF position); and
(iii) any other conditions to the issuance under the applicable Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares of the applicable Trust corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 3 contracts
Samples: Authorized Participant Agreement (iShares GS Commodity Non Energy Indexed Trust), Authorized Participant Agreement (iShares GS Commodity Natural Gas Indexed Trust), Authorized Participant Agreement (iShares GS Commodity Industrial Metals Indexed Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 4:00 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a Benchmark Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which no Benchmark Price is announced, shall be considered received at the opening of business on the next Business Day on which a Benchmark Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “”a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent Trustee only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Trustee’s Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Silver Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Silver on behalf of the Trust).
(ii) The Creation and Redemption Agent Within one hour following such telephone call, the Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) Trustee shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences provide a written summary to the TrustCustodian of all Orders for such Order Date no later than 4:30 p.m. (New York time). The Trustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant no later than 5:00 p.m. (New York time).
d. Before accepting a Purchase Order, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Silver in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in London and at each location at which the Authorized Participant will be expected to Deliver Silver pursuant to “c” above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed “Accepted” by the Trustee and indicating the Basket Silver Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption AgentTrustee’s confirmation of acceptanceacceptance as specified above, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents Silver in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. e. The Authorized Participant will be responsible for the cost of transportation of Silver to the location where it is to be Delivered. The Basket Silver Amount corresponding to each Basket must be delivered at the locations specified by the Custodian no later than 11:30 a.m. (London time) on the second Custodian Day following the Order Date. Delivery may be made for deposit either in the Trustee’s Custodial Account or in an account of the Authorized Participant with the Custodian or any subcustodian. If delivery is made for deposit in the Authorized Participant’s account with the Custodian, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Silver so delivered to the Trustee’s Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph ”h” or “i” below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (London time) on the second Custodian Day following the applicable Order Date.
f. Silver shall be Delivered to the Custodian in the form of Silver bars only, and must be accompanied by the corresponding bar list; provided, that an amount of Silver not exceeding 1100 Ounces may be Delivered to the Custodian on an Unallocated Basis. Silver that has been Delivered to the Custodian no later than 11:30 a.m. (London time) on a Custodian Day shall be allocated by the Custodian to the Trustee’s Custodial Account no later than 9:00 a.m. (New York time) on the first Custodian Day following the date of such Delivery. In all other cases Silver Delivered to the Custodian shall be allocated by the Custodian to the Trustee’s Custodial Account no later than the third Custodian Date following the Order Date.
g. The Custodian shall allocate Silver to the Trustee’s Custodial Account by (i) making entries in the Custodian’s books and records to identify such Silver as being held for the Trust, it being understood that such entries shall identify each bar of Silver so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Silver held by the Custodian for its own account or on behalf of other clients the Silver so allocated to the Trustee’s Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above.
h. On the first Business third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them Deliver them, by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance and Delivery is to take place:
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that:
(a) in the case Silver bars delivered by the Authorized Participant, it has reviewed the corresponding bar list and the Silver received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Silver matches the description in the Basket Constituents have been properly matched bar list in terms of weight, fineness, refiner’s marks and effected bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of Silver purchased for its own account, the Silver deposited by the Authorized Participant in respect to such Purchase Order (A) complies with the “Good Delivery” Rules of the LBMA and (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the books aggregate 1100 Ounces); or
(b) in the case of Silver delivered on an unallocated basis, the corresponding amount of Silver been allocated to the Trustee’s Custodian Account and records the Silver so allocated is in compliance with the provisions of the clearinghouse; andparagraph above;
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by 2,000.00;
(iii) the number Authorized Participant shall have agreed to pay, or reimburse the Custodian or the Trust the amount of, any applicable taxes (including VAT) which is or becomes due in connection with the Delivery of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs Silver to the Investing Pool of establishing the corresponding CERF position)Custodian; and
(iiiiv) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iiiiv) of paragraph “d”h” above shall have been met.
Appears in 3 contracts
Samples: Authorized Participant Agreement (iShares Silver Trust), Authorized Participant Agreement (iShares Silver Trust), Authorized Participant Agreement (iShares Silver Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 3:59:59 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a Benchmark Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which no Benchmark Price is announced, shall be considered received at the opening of business on the next Business Day on which a Benchmark Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “”a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent Trustee only when each of the following has occurred:occurred no later than 3:59:59 p.m. (New York time):
(i) An Authorized Representative shall have placed a telephone call to the Trustee’s Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Silver Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Silver on behalf of the Trust).
(ii) The Creation and Redemption Agent Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) Trustee shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences provide a written summary to the TrustCustodian of all Orders for such Order Date no later than 4:30 p.m. (New York time). The Trustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant no later than 5:00 p.m. (New York time).
d. Before accepting a Purchase Order, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Silver in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in London and at each location at which the Authorized Participant will be expected to Deliver Silver pursuant to “c” above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed “Accepted” by the Trustee and indicating the Basket Silver Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption AgentTrustee’s confirmation of acceptanceacceptance as specified above, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents Silver in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. e. The Authorized Participant will be responsible for the cost of transportation of Silver to the location where it is to be Delivered. The Basket Silver Amount corresponding to each Basket must be delivered at the locations specified by the Custodian no later than 11:30 a.m. (London time) on the second Custodian Day following the Order Date. Delivery may be made for deposit either in the Trustee’s Custodial Account or in an account of the Authorized Participant with the Custodian or any subcustodian. If delivery is made for deposit in the Authorized Participant’s account with the Custodian, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Silver so delivered to the Trustee’s Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph ”h” or “i” below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (London time) on the second Custodian Day following the applicable Order Date.
f. Silver shall be Delivered to the Custodian in the form of Silver bars only, and must be accompanied by the corresponding bar list; provided, that an amount of Silver not exceeding 1100 Ounces may be Delivered to the Custodian on an Unallocated Basis. Silver that has been Delivered to the Custodian no later than 11:30 a.m. (London time) on a Custodian Day shall be allocated by the Custodian to the Trustee’s Custodial Account no later than 9:00 a.m. (New York time) on the first Custodian Day following the date of such Delivery. In all other cases Silver Delivered to the Custodian shall be allocated by the Custodian to the Trustee’s Custodial Account no later than the third Custodian Date following the Order Date.
g. The Custodian shall allocate Silver to the Trustee’s Custodial Account by (i) making entries in the Custodian’s books and records to identify such Silver as being held for the Trust, it being understood that such entries shall identify each bar of Silver so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Silver held by the Custodian for its own account or on behalf of other clients the Silver so allocated to the Trustee’s Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above.
h. On the first Business third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them Deliver them, by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance and Delivery is to take place:
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that:
(a) in the case Silver bars delivered by the Authorized Participant, it has reviewed the corresponding bar list and the Silver received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Silver matches the description in the Basket Constituents have been properly matched bar list in terms of weight, fineness, refiner’s marks and effected bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of Silver purchased for its own account, the Silver deposited by the Authorized Participant in respect to such Purchase Order (A) complies with the “Good Delivery” Rules of the LBMA and (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the books aggregate 1100 Ounces); or
(b) in the case of Silver delivered on an unallocated basis, the corresponding amount of Silver been allocated to the Trustee’s Custodian Account and records the Silver so allocated is in compliance with the provisions of the clearinghouse; andparagraph above;
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by 2,000.00;
(iii) the number Authorized Participant shall have agreed to pay, or reimburse the Custodian or the Trust the amount of, any applicable taxes (including VAT) which is or becomes due in connection with the Delivery of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs Silver to the Investing Pool of establishing the corresponding CERF position)Custodian; and
(iiiiv) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iiiiv) of paragraph “d”h” above shall have been met.
Appears in 2 contracts
Samples: Authorized Participant Agreement, Authorized Participant Agreement (iShares Silver Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 3:59:59 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a Benchmark Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which no Benchmark Price is announced, shall be considered received at the opening of business on the next Business Day on which a Benchmark Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent Trustee only when each of the following has occurred:occurred no later than 3:59:59 p.m. (New York time):
(i) An Authorized Representative shall have placed a telephone call to the Trustee’s Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Silver Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Silver on behalf of the Trust).
(ii) The Creation and Redemption Agent Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) Trustee shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences provide a written summary to the TrustCustodian of all Orders for such Order Date no later than 4:30 p.m. (New York time). The Trustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant no later than 5:00 p.m. (New York time).
d. Before accepting a Purchase Order, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Silver in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in London and at each location at which the Authorized Participant will be expected to Deliver Silver pursuant to “c” above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed “Accepted” by the Trustee and indicating the Basket Silver Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption AgentTrustee’s confirmation of acceptanceacceptance as specified above, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents Silver in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. e. The Authorized Participant will be responsible for the cost of transportation of Silver to the location where it is to be Delivered. The Basket Silver Amount corresponding to each Basket must be delivered at the locations specified by the Custodian no later than 11:30 a.m. (London time) on the second Custodian Day following the Order Date. Delivery may be made for deposit either in the Trustee’s Custodial Account or in an account of the Authorized Participant with the Custodian or any subcustodian. If delivery is made for deposit in the Authorized Participant’s account with the Custodian, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Silver so delivered to the Trustee’s Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph “h” or “i” below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (London time) on the second Custodian Day following the applicable Order Date.
f. Silver shall be Delivered to the Custodian in the form of Silver bars only, and must be accompanied by the corresponding bar list; provided, that an amount of Silver not exceeding 1100 Ounces may be Delivered to the Custodian on an Unallocated Basis. Silver that has been Delivered to the Custodian no later than 11:30 a.m. (London time) on a Custodian Day shall be allocated by the Custodian to the Trustee’s Custodial Account no later than 9:00 a.m. (New York time) on the first Custodian Day following the date of such Delivery. In all other cases Silver Delivered to the Custodian shall be allocated by the Custodian to the Trustee’s Custodial Account no later than the third Custodian Date following the Order Date.
g. The Custodian shall allocate Silver to the Trustee’s Custodial Account by (i) making entries in the Custodian’s books and records to identify such Silver as being held for the Trust, it being understood that such entries shall identify each bar of Silver so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Silver held by the Custodian for its own account or on behalf of other clients the Silver so allocated to the Trustee’s Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above.
h. On the first Business third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them Deliver them, by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance and Delivery is to take place:
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that:
(a) in the case Silver bars delivered by the Authorized Participant, it has reviewed the corresponding bar list and the Silver received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Silver matches the description in the Basket Constituents have been properly matched bar list in terms of weight, fineness, refiner’s marks and effected bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of Silver purchased for its own account, the Silver deposited by the Authorized Participant in respect to such Purchase Order (A) complies with the “Good Delivery” Rules of the LBMA and (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the books aggregate 1100 Ounces); or
(b) in the case of Silver delivered on an unallocated basis, the corresponding amount of Silver been allocated to the Trustee’s Custodian Account and records the Silver so allocated is in compliance with the provisions of the clearinghouse; andparagraph above;
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by 2,000.00;
(iii) the number Authorized Participant shall have agreed to pay, or reimburse the Custodian, the Trustee or the Trust the amount of, any applicable taxes (including VAT) which is or becomes due in connection with the Delivery of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs Silver to the Investing Pool of establishing the corresponding CERF position)Custodian; and
(iiiiv) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iiiiv) of paragraph “dh” above shall have been met.
Appears in 2 contracts
Samples: Custodian Agreement, Custodian Agreement (iShares Silver Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” “ above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, by 11:00 a.m. (New York time) on the date such issuance is to take place:
(i) the Custodian shall have provided confirmation to the Settlement Agent that the EFPs in connection with any CERFs included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position); and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (iShares GSCI Commodity-Indexed Investing Pool LLC)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall may place a Purchase Order with the Creation and Redemption Agent on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Within one hour following such telephone call, the Creation and Redemption Agent shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, Trustee or the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Clearing FCM at the offices of the Clearing FCM in New York), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from copy of the corresponding Purchase Order endorsed “Accepted” by the Creation and Redemption Agent of and indicating the accepted Purchase OrderBasket Constituents that the Authorized Participant shall Deliver to the Clearing FCM. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptanceacceptance as specified above, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Creation and Redemption Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance is to take place:
(i) the Custodian Manager or its agent shall have provided confirmation confirmed in writing to the Settlement Creation and Redemption Agent that the EFPs in connection with any CERFs included in Delivery of the Basket Constituents have has been properly matched and effected in made to the books and records Clearing FCM (reflecting the Delivery of the clearinghouseBasket Constituents to the Trustee and the contribution by the Trustee of such Basket Constituents to the Investing Pool); and
(ii) the Settlement Creation and Redemption Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by [ ], plus any expenses, taxes or charges (including stamp taxes or stock transfer taxes or fees) in connection with the number of CERFs included in the Basket Constituents Purchase Order (and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position); and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Creation and Redemption Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (iShares GSCI Commodity Indexed Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 4:00 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a COMEX Relevant Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which COMEX does not announce a COMEX Relevant Price, shall be considered received at the opening of business on the next Business Day on which a COMEX Relevant Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “"a” " above, a Purchase Order shall be deemed “"received” " by the Creation and Redemption Agent Trustee only when each of the following has occurred:
(i) c. An Authorized Representative shall have placed a telephone call to the Trustee's Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of BasketsBaskets and the city or cities where the Authorized Participant expects to make Delivery to the Custodian of the Basket Gold Amount corresponding to each Basket (such city or cities to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Gold on behalf of the Trust).
(ii) The Creation and Redemption Agent d. Within one hour following such telephone call, the Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. e. The Creation and Redemption Agent (acting on behalf of, and in consultation with, Trustee will ask the Trustee) shall have the absolute right Custodian to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, confirm whether it can take delivery in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered cities indicated by the Authorized Participant and deliver them by credit and, if so, to identify the account at DTC which facilities where the Authorized Participant shall make Delivery of the Basket Gold Amount. The Custodian shall have identified for such purpose in written instructions no obligation to take delivery if the Custodian confirms to the Settlement AgentTrustee that it cannot take delivery because of lack of capacity. For purposes of the foregoing sentence, provided that, by 11:00 a.m. (New York time) on the date such issuance is to take place:
"capacity" means: (i) the Custodian shall have provided confirmation maximum amount of gold that can be physically stored in vaults available to the Settlement Agent that the EFPs in connection with any CERFs included Custodian in the Basket Constituents have been properly matched relevant city; and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from maximum amount of gold that the Authorized Participant (1) delivery of any cash or Short-Term Securities can be physically accepted on a given date at vaults available to the Custodian in the Basket Constituents and relevant city. The Custodian will also be deemed to lack "capacity" to accept additional gold if, after giving effect to a transaction fee per Basket new delivery, the value of gold held in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position); and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfiedCustodial Account would exceed $2 billion.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (Ishares Comex Gold Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 4:00 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a COMEX Relevant Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which COMEX does not announce a COMEX Relevant Price, shall be considered received at the opening of business on the next Business Day on which a COMEX Relevant Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent Trustee only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Trustee’s Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Gold Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Gold on behalf of the Trust).
(ii) The Creation and Redemption Agent Within one hour following such telephone call, the Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf ofTrustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant. The Custodian shall have no obligation to take delivery Table of Contents if the Custodian confirms to the Trustee that it cannot take delivery because of lack of capacity. For purposes of the foregoing sentence, and in consultation withthere will be a lack of capacity if, after giving effect to the proposed delivery, the Trustee) shall have amount of Gold held at the absolute right to reject any Purchase Order including, without limitation, relevant location would exceed: (i) Purchase Orders the maximum amount of Gold that can be physically stored in vaults available to the Custodian at such location or, in the case of Gold held for the Custodian at The Bank of England, the maximum amount of Gold belonging to the Trust that the Creation Custodian has agreed to accept at that facility; and Redemption Agent has determined are not in proper form, (ii) Purchase Orders the maximum amount of gold that the Trustee has determined would have adverse tax or other consequences can be physically accepted on a given date at vaults available to the TrustCustodian in the relevant location. The Custodian will also be deemed to lack “capacity” to accept additional Gold if, after giving effect to a new delivery, the Investing Pool or to owners value of iShares, or (iii) Purchase Orders the acceptance of which would, Gold held in the opinion of counsel to the SponsorCustodial Account would exceed $2 billion.
d. Before accepting a Purchase Order, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Gold in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in New York and at each location at which the Authorized Participant will be expected to Deliver Gold pursuant to “c” above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed “Accepted” by the Trustee and indicating the Basket Gold Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption AgentTrustee’s confirmation of acceptanceacceptance as specified above, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents Gold in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. e. Unless waived by the Trustee, the Authorized Participant will be responsible for the cost of transportation of Gold to the location where it is to be Delivered, as well as for the cost of transportation of any Gold that has to be removed from a location at which the Authorized Participant wishes to make Delivery in order to make capacity available for such Delivery at such location. The Basket Gold Amount corresponding to each Basket must be delivered at the locations specified by the Custodian. If the location so specified by the Custodian is not The Bank of England, delivery of the Basket Gold Amount must be made no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the Order Date. If the location so specified by the Custodian is The Bank of England, delivery of the Basket Gold Amount must be made no later than 11:30 a.m. (London time) on the third Custodian Day following the Order Date. If the location specified by the Custodian is not The Bank of England, delivery may be made for deposit either in the Trustee’s Custodial Account or in an account of the Authorized Participant with the Custodian. If the location specified by the Custodian is The Bank of England, delivery must be for deposit in the Custodian’s account at The Bank of England. If delivery is made for deposit in the Authorized Participant’s account with the Custodian, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Gold so delivered to the Trustee’s Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph “h” or “i” below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the applicable Order Date.
f. Gold shall be Delivered to the Custodian in the form of Gold bars only and must be accompanied by the corresponding bar list; provided, that an amount of Gold not exceeding 430 Ounces may be Delivered to the Custodian on an Unallocated Basis. Gold that has been Delivered to the Custodian no later than 11:30 a.m. (local time at the place of Delivery) on a Custodian Day shall be allocated by the Custodian to the Trustee’s Custodial Account no later than 9:00 a.m. (New York time) (A) on the date of such Delivery, in the case of Gold delivered to the Custodian’s account at The Bank of Table of Contents England, (B) on the second Custodian Day following the date of such Delivery, provided that it does not exceed (i) in the case of Gold already in the possession of the Custodian prior to such Delivery, 500,000 Fine Ounces, and (ii) in the case of Gold that was not in the possession of the Custodian prior to such Delivery, 50,000 Fine Ounces, or (C) on the fourth Custodian Day following the date of such Delivery, in the case of more than 50,000, but less than 100,000, Fine Ounces of Gold that was not in the possession of the Custodian prior to such Delivery. In all other cases Gold Delivered to the Custodian shall be allocated by the Custodian to the Trustee’s Custodial Account as soon as practicable.
g. The Custodian shall allocate Gold to the Trustee’s Custodial Account by (i) making entries in the Custodian’s books and records to identify such Gold as being held for the Trust, it being understood that such entries shall identify each bar of Gold so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Gold held by the Custodian for its own account or on behalf of other clients the Gold so allocated to the Trustee’s Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above; provided, however, that in the case of Gold delivered to The Bank of England for credit to the Custodian’s account, for as long as such Gold remains in the possession of The Bank of England, the allocation of such Gold to the Custodial Account shall only require the book entries referred to in clause (i) above, and upon the completion of such entries such Gold, although held by The Bank of England in the Custodian’s account, will be the absolute property of the Trust. Any Gold received by the Custodian on an Unallocated Basis in compliance with the provisions of paragraph “f” above, shall be transferred to the Trustee’s Custodial Account by the Custodian.
h. On the first Business third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them Deliver them, by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance and Delivery is to take place:
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that:
(a) in the case of Gold delivered by the Authorized Participant at a facility other than The Bank of England (or, if delivered at The Bank of England, which has since been transferred to another facility), it has reviewed the bar list and the Gold received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Gold matches the description in the Basket Constituents bar list in terms of weight, fineness, refiner’s marks and bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of gold purchased for its own account, the Gold deposited by the Authorized Participant in respect to such Purchase Order (A) complies with (1) the “Good Delivery” Rules of the London Bullion Market Association, and/or (2) the specifications for delivery in settlement of a COMEX gold futures contract, and/or (3) such other standards as the Custodian and the Trustee, with the approval of the Sponsor, may have been properly matched adopted; and effected (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the aggregate 430 Fine Ounces); or Table of Contents
(b) in the case of Gold delivered by the Authorized Participant at The Bank of England (and which remains in the custody of The Bank of England), for credit to the Custodian’s account thereat, it has received confirmation of such delivery from The Bank of England and has recorded in the Custodian’s books and records the ownership of such Gold as belonging to the clearinghouseTrust; and
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position)2,000.00; and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iii) of paragraph “dh” above shall have been met.. Table of Contents ARTICLE III
Appears in 1 contract
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) in response to market conditions or other circumstances that make transactions in or delivery of the iShares or the Index Futures impossible or impractical, (iii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool or to owners of iShares, or (iiiiv) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents (or if applicable, cash) in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, that by 11:00 a.m. (New York time) on the date such issuance is to take place:
(i) the applicable Custodian shall have provided confirmation to the Settlement Agent that the EFPs EFRPs in connection with any CERFs Index Futures included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents andApplicable Transaction Fee, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF Index Future position); and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the applicable Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the applicable Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (iShares S&P GSCI Commodity-Indexed Investing Pool LLC)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares of a Trust shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” “ above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the applicable Trust or Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the applicable Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, by 11:00 a.m. (New York time) on the date such issuance is to take place:
(i) the Custodian shall have provided confirmation to the Settlement Agent that the EFPs in connection with any CERFs included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the applicable Investing Pool of establishing the corresponding CERF position); and
(iii) any other conditions to the issuance under the applicable Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares of the applicable Trust corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (iShares GS Commodity Energy Indexed Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) in response to market conditions or other circumstances that make transactions in or delivery of the iShares or the Index Futures impossible or impractical, (iii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool Trust or to owners of iShares, or (iiiiv) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents (or if applicable, cash) in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party. Upon the delivery of any such confirmation of acceptance of a Purchase Order in accordance with the foregoing, the Trust and the AP shall be bound thereby and each of the AP, the Trust, the Trustee and the Creation and Redemption Agent shall be bound by the terms of these Procedures, the Authorized Participant Agreement and the Trust Agreement applicable to it with respect to such Purchase Order. In connection with any Purchase Order, the Creation and Redemption Agent may require Authorized Participant to deposit into the Collateral Accounts by 6:00 p.m. (New York time) on such Business Day, the Delivery obligation specified in paragraph “d” below or Collateral in an amount sufficient to satisfy such Delivery obligations and any related reimbursement obligations, as determined in accordance with the Control Agreement.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, that by 11:00 a.m. (New York time) on the date such issuance is to take place:
(i) the applicable Custodian shall have provided confirmation to the Settlement Agent that the EFPs EFRPs in connection with any CERFs Index Futures included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents andApplicable Transaction Fee, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position)positions in Index Futures and Short-Term Securities; and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the applicable Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, (i) the Trustee may, or may cause the Settlement Agent may to, apply or liquidate any Collateral deposited into the Collateral Accounts pursuant to paragraph “c” above and/or apply the proceeds thereof to acquire Basket Constituents and apply them towards Authorized Participant’s Delivery obligations under paragraph “d” above and to reimburse the Trust for any related expenses or (ii) the Trustee may, or cause the Settlement Agent to, cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the applicable Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (iShares Dow Jones-Ubs Roll Select Commodity Index Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 4:00 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a COMEX Relevant Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which COMEX does not announce a COMEX Relevant Price, shall be considered received at the opening of business on the next Business Day on which a COMEX Relevant Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “"a” " above, a Purchase Order shall be deemed “"received” " by the Creation and Redemption Agent Trustee only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Trustee's Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Gold Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Gold on behalf of the Trust).
(ii) The Creation and Redemption Agent Within one hour following such telephone call, the Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf ofTrustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant. The Custodian shall have no obligation to take delivery if the Custodian confirms to the Trustee that it cannot take delivery because of lack of capacity. For purposes of the foregoing sentence, and in consultation withthere will be a lack of capacity if, after giving effect to the proposed delivery, the Trustee) shall have amount of Gold held at the absolute right to reject any Purchase Order including, without limitation, relevant location would exceed: (i) Purchase Orders the maximum amount of Gold that can be physically stored in vaults available to the Custodian at such location or, in the case of Gold held for the Custodian at The Bank of England, the maximum amount of Gold belonging to the Trust that the Creation Custodian has agreed to accept at that facility; and Redemption Agent has determined are not in proper form, (ii) Purchase Orders the maximum amount of gold that the Trustee has determined would have adverse tax or other consequences can be physically accepted on a given date at vaults available to the TrustCustodian in the relevant location. The Custodian will also be deemed to lack "capacity" to accept additional Gold if, after giving effect to a new delivery, the Investing Pool or to owners value of iShares, or (iii) Purchase Orders the acceptance of which would, Gold held in the opinion of counsel to the SponsorCustodial Account would exceed $2 billion.
d. Before accepting a Purchase Order, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Gold in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in New York and at each location at which the Authorized Participant will be expected to Deliver Gold pursuant to "c" above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed "Accepted" by the Trustee and indicating the Basket Gold Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptanceTrustee's acceptance as specified above, a Purchase Order will only represent the Authorized Participant’s 's unilateral offer to deposit the Basket Constituents Gold in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. e. Unless waived by the Trustee, the Authorized Participant will be responsible for the cost of transportation of Gold to the location where it is to be Delivered, as well as for the cost of transportation of any Gold that has to be removed from a location at which the Authorized Participant wishes to make Delivery in order to make capacity available for such Delivery at such location. The Basket Gold Amount corresponding to each Basket must be delivered at the locations specified by the Custodian. If the location so specified by the Custodian is not The Bank of England, delivery of the Basket Gold Amount must be made no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the Order Date. If the location so specified by the Custodian is The Bank of England, delivery of the Basket Gold Amount must be made no later than 11:30 a.m. (London time) on the third Custodian Day following the Order Date. If the location specified by the Custodian is not The Bank of England, delivery may be made for deposit either in the Trustee's Custodial Account or in an account of the Authorized Participant with the Custodian. If the location specified by the Custodian is The Bank of England, delivery must be for deposit in the Custodian's account at The Bank of England. If delivery is made for deposit in the Authorized Participant's account with the Custodian, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Gold so delivered to the Trustee's Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph "h" or "i" below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the applicable Order Date.
f. Gold shall be Delivered to the Custodian in the form of Gold bars only and must be accompanied by the corresponding bar list; provided, that an amount of Gold not exceeding 430 Ounces may be Delivered to the Custodian on an Unallocated Basis. Gold that has been Delivered to the Custodian no later than 11:30 a.m. (local time at the place of Delivery) on a Custodian Day shall be allocated by the Custodian to the Trustee's Custodial Account no later than 9:00 a.m. (New York time) (A) on the date of such Delivery, in the case of Gold delivered to the Custodian's account at the Bank of England, (B) on the second Custodian Day following the date of such Delivery, provided that it does not exceed (i) in the case of Gold already in the possession of the Custodian prior to such Delivery, 500,000 Fine Ounces, and (ii) in the case of Gold that was not in the possession of the Custodian prior to such Delivery, 50,000 Fine Ounces, or (C) on the fourth Custodian Day following the date of such Delivery, in the case of more than 50,000, but less than 100,000, Fine Ounces of Gold that was not in the possession of the Custodian prior to such Delivery. In all other cases Gold Delivered to the Custodian shall be allocated by the Custodian to the Trustee's Custodial Account as soon as practicable.
g. The Custodian shall allocate Gold to the Trustee's Custodial Account by (i) making entries in the Custodian's books and records to identify such Gold as being held for the Trust, it being understood that such entries shall identify each bar of Gold so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Gold held by the Custodian for its own account or on behalf of other clients the Gold so allocated to the Trustee's Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above; provided, however, that in the case of Gold delivered to The Bank of England for credit to the Custodian's account, for as long as such Gold remains in the possession of The Bank of England, the allocation of such Gold to the Custodial Account shall only require the book entries referred to in clause (i) above, and upon the completion of such entries such Gold, although held by The Bank of England in the Custodian's account, will be the absolute property of the Trust. Any Gold received by the Custodian on an Unallocated Basis in compliance with the provisions of paragraph "f" above, shall be transferred to the Trustee's Custodial Account by the Custodian.
h. On the first Business third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them Deliver them, by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance and Delivery is to take place:,
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that
(a) in the case of Gold delivered by the Authorized Participant at a facility other than The Bank of England (or, if delivered at The Bank of England, which has since been transferred to another facility), it has reviewed the bar list and the Gold received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Gold matches the description in the Basket Constituents bar list in terms of weight, fineness, refiner's marks and bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of gold purchased for its own account, the Gold deposited by the Authorized Participant in respect to such Purchase Order (A) complies with (1) the "Good Delivery" Rules of the London Bullion Market Association, and/or (2) the specifications for delivery in settlement of a COMEX gold futures contract, and/or (3) such other standards as the Custodian and the Trustee, with the approval of the Sponsor, may have been properly matched adopted; and effected (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the aggregate 430 Fine Ounces); or
(b) in the case of Gold delivered by the Authorized Participant at The Bank of England (and which remains in the custody of The Bank of England), for credit to the Custodian's account thereat, it has received confirmation of such delivery from The Bank of England and has recorded in the Custodian's books and records the ownership of such Gold as belonging to the clearinghousetrust; and
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position)2,000.00; and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iii) of paragraph “d” "h" above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (Ishares Comex Gold Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 4:00 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a COMEX Relevant Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which COMEX does not announce a COMEX Relevant Price, shall be considered received at the opening of business on the next Business Day on which a COMEX Relevant Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “"a” " above, a Purchase Order shall be deemed “"received” " by the Creation and Redemption Agent Trustee only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Trustee's Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Gold Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Gold on behalf of the Trust).
(ii) The Creation and Redemption Agent Within one hour following such telephone call, the Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf ofTrustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant. The Custodian shall have no obligation to take delivery if the Custodian confirms to the Trustee that it cannot take delivery because of lack of capacity. For purposes of the foregoing sentence, and in consultation withthere will be a lack of capacity if, after giving effect to the proposed delivery, the Trustee) shall have amount of Gold held at the absolute right to reject any Purchase Order including, without limitation, relevant location would exceed: (i) Purchase Orders the maximum amount of Gold that can be physically stored in vaults available to the Custodian at such location or, in the case of Gold held for the Custodian at The Bank of England, the maximum amount of Gold belonging to the Trust that the Creation Custodian has agreed to accept at that facility; and Redemption Agent has determined are not in proper form, (ii) Purchase Orders the maximum amount of gold that the Trustee has determined would have adverse tax or other consequences can be physically accepted on a given date at vaults available to the TrustCustodian in the relevant location. The Custodian will also be deemed to lack "capacity" to accept additional Gold if, after giving effect to a new delivery, the Investing Pool or to owners value of iShares, or (iii) Purchase Orders the acceptance of which would, Gold held in the opinion of counsel to the SponsorCustodial Account would exceed $2 billion.
d. Before accepting a Purchase Order, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Gold in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in New York and at each location at which the Authorized Participant will be expected to Deliver Gold pursuant to "c" above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed "Accepted" by the Trustee and indicating the Basket Gold Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptanceTrustee's acceptance as specified above, a Purchase Order will only represent the Authorized Participant’s 's unilateral offer to deposit the Basket Constituents Gold in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. On e. Unless waived by the Trustee, the Authorized Participant will be responsible for the cost of transportation of Gold to the location where it is to be Delivered, as well as for the cost of transportation of any Gold that has to be removed from a location at which the Authorized Participant wishes to make Delivery in order to make capacity available for such Delivery at such location. The Basket Gold Amount corresponding to each Basket must be delivered no later than 11:30 a.m. (local time at the place of Delivery) on the first Business Custodian Day following the Order Date, at the locations specified by the Custodian. At the election of the Authorized Participant such delivery may be made for deposit in the Trustee's Custodial Account or in an account of the Authorized Participant with the Custodian. If delivery is made for deposit in the Authorized Participant's account, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Gold so delivered to the Trustee's Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph "h" or "i" below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the applicable Order Date.
f. Gold Delivered to the Custodian in the form of Gold bars must be accompanied by the corresponding bar list; provided, that an amount of Gold not exceeding 430 Ounces may be Delivered to the Custodian on an Unallocated Basis. Gold that has been Delivered to the Custodian no later than 11:30 a.m. (local time at the place of Delivery) on a Custodian Day shall be allocated by the Custodian to the Trustee's Custodial Account no later than 9:00 a.m. (New York time) (A) on the second Custodian Day following the date of such Delivery, provided that it does not exceed (i) in the case of Gold already in the possession of the Custodian prior to such Delivery, 500,000 Fine Ounces, and (ii) in the case of Gold that was not in the possession of the Custodian prior to such Delivery, 50,000 Fine Ounces, or (B) on the fourth Custodian Day following the date of such Delivery, in the case of more than 50,000, but less than 100,000, Fine Ounces of Gold that was not in the possession of the Custodian prior to such Delivery. In all other cases Gold Delivered to the Custodian shall be allocated by the Custodian to the Trustee's Custodial Account as soon as practicable.
g. The Custodian shall allocate Gold to the Trustee's Custodial Account by (i) making entries in the Custodian's books and records to identify such Gold as being held for the Trust, it being understood that such entries shall identify each bar of Gold so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Gold held by the Custodian for its own account or on behalf of other clients the Gold so allocated to the Trustee's Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above; provided, however, that in the case of Gold delivered to The Bank of England for credit to the Custodian's account, for as long as such Gold remains in the possession of The Bank of England, the allocation of such Gold to the Custodial Account shall only require the book entries referred to in clause (i) above, and upon the completion of such entries such Gold, although held by The Bank of England in the Custodian's account, will be the absolute property of the Trust. Any Gold received by the Custodian on an Unallocated Basis in compliance with the provisions of paragraph "f" above, shall be transferred to the Trustee's Custodial Account by the Custodian.
h. Provided that, by 9:00 a.m. (New York time) on the third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, by 11:00 a.m. (New York time) on the date such issuance is to take place:,
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that
(a) in the case of Gold delivered by the Authorized Participant at a facility other than The Bank of England (or, if delivered at The Bank of England, which has since been transferred to another facility), it has reviewed the bar list and the Gold received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Gold matches the description in the Basket Constituents bar list in terms of weight, fineness, refiner's marks and bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of gold purchased for its own account, the Gold deposited by the Authorized Participant in respect to such Purchase Order (A) complies with (1) the "Good Delivery" Rules of the London Bullion Market Association, and/or (2) the specifications for delivery in settlement of a COMEX gold futures contract, and/or (3) such other standards as the Custodian and the Trustee, with the approval of the Sponsor, may have been properly matched adopted; and effected (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the aggregate 430 Fine Ounces); or
(b) in the case of Gold delivered by the Authorized Participant at The Bank of England (and which remains in the custody of The Bank of England), for credit to the Custodian's account thereat, it has received confirmation of such delivery from The Bank of England and has recorded in the Custodian's books and records the ownership of such Gold as belonging to the clearinghousetrust; and
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position)2,000.00; and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In , the event thatTrustee (on such date, by 11:00 a.m. (New York time) if it is a Business Day and, if not, on the first next Business Day following Day) shall issue the Order Date aggregate number of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents iShares corresponding to the total number of Baskets ordered pursuant to such Purchase Order, by the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and Deliver them by credit to the Custodianaccount at DTC which the Authorized Participant shall have identified for such purpose in its Purchase Order.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iii) of paragraph “d” "h" above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (Ishares Comex Gold Trust)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets.
(ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the Trust, the Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange for one or more Baskets and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent or any other party.
d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, provided that, that by 11:00 a.m. (New York time) on the date such issuance is to take place:
(i) the Custodian shall have provided confirmation to the Settlement Agent that the EFPs in connection with any CERFs included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and
(ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position); and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met.
Appears in 1 contract
Samples: Authorized Participant Agreement (iShares S&P GSCI Commodity-Indexed Investing Pool LLC)
Subsequent Creation of iShares. After the Initial Creation, the issuance and Delivery of iShares shall take place only in integral numbers of Baskets in compliance with the following rules:
a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent Trustee no later than 4:00 p.m. (New York time) on any Business Day. ; provided, however, that only Purchase Orders received by the Creation and Redemption Agent Trustee prior to the Order Cut-Off Time on a Business Day on which a COMEX Relevant Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent Trustee on or after the Order Cut-Off Time on a Business Day, or on a Business Day on which COMEX does not announce a COMEX Relevant Price, shall be considered received at the opening of business on the next Business Day on which a COMEX Relevant Price is announced and shall have as their Order Date such next Business Day.
b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Creation and Redemption Agent Trustee only when each of the following has occurred:
(i) An Authorized Representative shall have placed a telephone call to the Trustee’s Creation and Redemption Line informing the Creation and Redemption Agent Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Gold Amount corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Gold on behalf of the Trust).
(ii) The Creation and Redemption Agent Within one hour following such telephone call, the Trustee shall have sentreceived, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a duly completed, irrevocable Purchase Order for a specified number of baskets has been received executed by the Creation and Redemption Agent from an Authorized Representative for the of such Authorized Participant’s account.
c. The Creation and Redemption Agent (acting on behalf ofTrustee will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant. The Custodian shall have no obligation to take delivery if the Custodian confirms to the Trustee that it cannot take delivery because of lack of capacity. For purposes of the foregoing sentence, and in consultation withthere will be a lack of capacity if, after giving effect to the proposed delivery, the Trustee) shall have amount of Gold held at the absolute right to reject any Purchase Order including, without limitation, relevant location would exceed: (i) Purchase Orders the maximum amount of Gold that can be physically stored in vaults available to the Custodian at such location or, in the case of Gold held for the Custodian at The Bank of England, the maximum amount of Gold belonging to the Trust that the Creation Custodian has agreed to accept at that facility; and Redemption Agent has determined are not in proper form, (ii) Purchase Orders the maximum amount of gold that the Trustee has determined would have adverse tax or other consequences can be physically accepted on a given date at vaults available to the TrustCustodian in the relevant location. The Custodian will also be deemed to lack “capacity” to accept additional Gold if, after giving effect to a new delivery, the Investing Pool or to owners value of iShares, or (iii) Purchase Orders the acceptance of which would, Gold held in the opinion of counsel to the SponsorCustodial Account would exceed $2 billion.
d. Before accepting a Purchase Order, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable make sure that there exists at least one location at which the Authorized Participant is willing to any person for rejecting a Deliver, and the Custodian is capable of accepting, the requisite amount of Gold in connection with such Purchase Order. Should the Creation and Redemption Agent Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the Authorized ParticipantParticipant (with copies to the Custodian at the offices of the Custodian in New York and at each location at which the Authorized Participant will be expected to Deliver Gold pursuant to “c” above), via facsimile or electronic mail message, no later than 7:00 5:00 p.m. (New York time) on the same Business Day Order Date for such Purchase Order a confirmation from the Creation and Redemption Agent copy of the accepted corresponding Purchase OrderOrder endorsed “Accepted” by the Trustee and indicating the Basket Gold Amount that the Authorized Participant shall Deliver to the Custodian in respect of each Basket. Prior to the transmission of the Creation and Redemption AgentTrustee’s confirmation of acceptanceacceptance as specified above, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents Gold in exchange for one or more Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Creation and Redemption Agent Custodian or any other party.
d. e. Unless waived by the Trustee, the Authorized Participant will be responsible for the cost of transportation of Gold to the location where it is to be Delivered, as well as for the cost of transportation of any Gold that has to be removed from a location at which the Authorized Participant wishes to make Delivery in order to make capacity available for such Delivery at such location. The Basket Gold Amount corresponding to each Basket must be delivered at the locations specified by the Custodian. If the location so specified by the Custodian is not The Bank of England, delivery of the Basket Gold Amount must be made no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the Order Date. If the location so specified by the Custodian is The Bank of England, delivery of the Basket Gold Amount must be made no later than 11:30 a.m. (London time) on the third Custodian Day following the Order Date. If the location specified by the Custodian is not The Bank of England, delivery may be made for deposit either in the Trustee’s Custodial Account or in an account of the Authorized Participant with the Custodian. If the location specified by the Custodian is The Bank of England, delivery must be for deposit in the Custodian’s account at The Bank of England. If delivery is made for deposit in the Authorized Participant’s account with the Custodian, it will be accompanied by an irrevocable order to the Custodian authorizing the transfer of the Gold so delivered to the Trustee’s Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph “h” or “i” below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (local time at the place of Delivery) on the first Custodian Day following the applicable Order Date.
f. Gold shall be Delivered to the Custodian in the form of Gold bars only and must be accompanied by the corresponding bar list; provided, that an amount of Gold not exceeding 430 Ounces may be Delivered to the Custodian on an Unallocated Basis. Gold that has been Delivered to the Custodian no later than 11:30 a.m. (local time at the place of Delivery) on a Custodian Day shall be allocated by the Custodian to the Trustee’s Custodial Account no later than 9:00 a.m. (New York time) (A) on the date of such Delivery, in the case of Gold delivered to the Custodian’s account at The Bank of England, (B) on the second Custodian Day following the date of such Delivery, provided that it does not exceed (i) in the case of Gold already in the possession of the Custodian prior to such Delivery, 500,000 Fine Ounces, and (ii) in the case of Gold that was not in the possession of the Custodian prior to such Delivery, 50,000 Fine Ounces, or (C) on the fourth Custodian Day following the date of such Delivery, in the case of more than 50,000, but less than 100,000, Fine Ounces of Gold that was not in the possession of the Custodian prior to such Delivery. In all other cases Gold Delivered to the Custodian shall be allocated by the Custodian to the Trustee’s Custodial Account as soon as practicable.
g. The Custodian shall allocate Gold to the Trustee’s Custodial Account by (i) making entries in the Custodian’s books and records to identify such Gold as being held for the Trust, it being understood that such entries shall identify each bar of Gold so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from Gold held by the Custodian for its own account or on behalf of other clients the Gold so allocated to the Trustee’s Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written confirmation of the allocation, including the identification of the bars allocated as described above; provided, however, that in the case of Gold delivered to The Bank of England for credit to the Custodian’s account, for as long as such Gold remains in the possession of The Bank of England, the allocation of such Gold to the Custodial Account shall only require the book entries referred to in clause (i) above, and upon the completion of such entries such Gold, although held by The Bank of England in the Custodian’s account, will be the absolute property of the Trust. Any Gold received by the Custodian on an Unallocated Basis in compliance with the provisions of paragraph “f” above, shall be transferred to the Trustee’s Custodial Account by the Custodian.
h. On the first Business third Custodian Day following the Order Date corresponding to a Purchase Order, or on such other earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and deliver them Deliver them, by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agentits Purchase Order, provided that, by 11:00 9:00 a.m. (New York time) on the date such issuance and Delivery is to take place:
(i) the Custodian shall have provided confirmation reported in writing to the Settlement Agent Trustee that:
(a) in the case of Gold delivered by the Authorized Participant at a facility other than The Bank of England (or, if delivered at The Bank of England, which has since been transferred to another facility), it has reviewed the bar list and the Gold received from the Authorized Participant to assure that the EFPs in connection with any CERFs included Gold matches the description in the Basket Constituents bar list in terms of weight, fineness, refiner’s marks and bar numbers and that, based on that review and on such further examination as the Custodian customarily performs in respect of gold purchased for its own account, the Gold deposited by the Authorized Participant in respect to such Purchase Order (A) complies with (1) the “Good Delivery” Rules of the London Bullion Market Association, and/or (2) the specifications for delivery in settlement of a COMEX gold futures contract, and/or (3) such other standards as the Custodian and the Trustee, with the approval of the Sponsor, may have been properly matched adopted; and effected (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the aggregate 430 Fine Ounces); or
(b) in the case of Gold delivered by the Authorized Participant at The Bank of England (and which remains in the custody of The Bank of England), for credit to the Custodian’s account thereat, it has received confirmation of such delivery from The Bank of England and has recorded in the Custodian’s books and records the ownership of such Gold as belonging to the clearinghouseTrust; and
(ii) the Settlement Agent Trustee shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket Constituents and a per order transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the Creation and Redemption Agent, including the costs to the Investing Pool of establishing the corresponding CERF position)2,000.00; and
(iii) any other conditions to the issuance under the Trust Agreement shall have been satisfied.
e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian.
f. i. In all other cases, the Trustee shall issue the aggregate number of iShares corresponding to the Baskets ordered by the Authorized Participant and instruct the Settlement Agent to deliver Deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent its Purchase Order on the Business Day following the date on which the conditions set forth in clauses (i) to (iii) of paragraph “dh” above shall have been met.
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