The Successor Trust Clause Samples
The Successor Trust clause establishes the mechanism by which a new trust is designated to take over the assets and responsibilities of the original trust in the event of certain triggering circumstances, such as the termination or dissolution of the original trust. Typically, this clause outlines the process for identifying or creating the successor trust, the transfer of assets, and the continuation of beneficiary rights and obligations. Its core practical function is to ensure continuity in the management and distribution of trust assets, thereby preventing disruption or uncertainty for beneficiaries and trustees if the original trust can no longer operate as intended.
The Successor Trust. The CPO Trustee and the Common Representative of the CPO holders (acting under the terms of the CPO Trust) have agreed to constitute a new trust, upon termination of the CPO Trust, to hold the Shares previously held in the CPO Trust upon substantially the same terms and conditions as the CPO Trust (as are in force at the time of termination of the CPO Trust).
The Successor Trust out of each Successor Funds a ssets and property (including any amounts paid to the Successor Trust pursuant to any applicable liability insurance policies or indemnification agreements) agrees to indemnify and hold harmless the Predecessor Trust and its Trustees and officers from and against any and all losses, claims, damages, liabilities or expenses (including, without limitation, the payment of reasonable legal fees and reasonable costs of investigation) to which the corresponding Predecessor Fund may become subject, insofar as such loss, claim, damage, liability or expense (or actions with respect thereto) arises out of or is based on (a) any breach by the Successor Fund of any of its representations, warranties, covenants or agreements set forth in this Agreement or (b) any act, error, omission, neglect, misstatement, materially misleading statement, breach of duty or other act wrongfully done or attempted to be committed by the Successor Trust or its Trustees or officers prior to the Closing Date, provided that such indemnification by the Successor Trust (or the Successor Fund) is not (a) in violation of any applicable law or (b) otherwise prohibited as a result of any applicable order or decree issued by any governing regulatory authority or court of competent jurisdiction.