Trust Covenants Sample Clauses
The Trust Covenants clause sets out the ongoing obligations and promises that the trustee must uphold in managing the trust. These covenants typically require the trustee to act in good faith, maintain accurate records, and administer the trust assets according to the terms of the trust agreement and applicable law. By clearly outlining the trustee’s duties, this clause ensures accountability and helps protect the interests of the beneficiaries, reducing the risk of mismanagement or disputes.
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Trust Covenants. The Company shall, for so long as Trust I is in existence: (i) maintain directly or indirectly 100% ownership of the common securities of Trust I, (ii) cause Trust I to remain a statutory business trust and not to be voluntarily dissolved, wound-up, liquidated or terminated, except as provided for in the Declaration, (iii) use its commercially reasonable efforts to assure that Trust I will not be an "investment company" for purposes of the Investment Company Act of 1940, (iv) take no action that would be reasonably likely to cause Trust I to be classified as an association in a publicly traded partnership taxable as a corporation for United States federal income tax purposes, and (v) agree to pay all debts and obligations (other than with respect to the securities issued by Trust I) and all costs and expenses of Trust I (including, but not limited to, all costs and expenses relating to the organization of Trust I, the fees and expenses of the trustees and all costs and expenses relating to the operation of Trust I ) and to pay any and all taxes, duties, assessments or governmental charges of whatever nature (other than withholding taxes) imposed on Trust I by the United States, or any other taxing authority, so that the net amounts received and retained by Trust I after paying such expenses will be equal to the amounts Trust I would have received had no such costs or expenses been incurred by or imposed on the Trust I. The foregoing obligations of the Company are for the benefit of, and shall be enforceable by, any Person to whom any such debts, obligations, costs, expenses and taxes are owed (each, a "Creditor") whether or not such Creditor has received notice thereof. Any such Creditor may enforce such obligations of the Company directly against the Company, and the Company irrevocable waives any right or remedy to require that any such Creditor take any action against Trust I or any other Person before proceeding against the Company.
Trust Covenants. (a) Without generality of the foregoing, the Company, in its capacity as the trustee of the Trusts shall not initiate any action to liquidate or to dispose off (other than as permitted under the Trust Documents) the relevant Trust Funds without the prior written consent of the Debenture Trustee (acting on Approved Instructions) and shall promptly inform the Debenture Trustee in the event any such action is initiated by any holder of security receipts issued by the Trusts.
(b) The Company shall, in its capacity as the trustee of the Trusts, ensure that it shall not initiate any action or undertake any step for revocation of the contributions to the Trusts and shall promptly inform the Debenture Trustee if any action or step is undertaken for revocation of the contributions to the Trusts by any holder of security receipts issued by the Trusts subject to Applicable Laws.
(c) The Company shall, in its capacity as the trustee of the Trusts, ensure, that no action is undertaken which results in the Company being discharged or removed or being threatened in writing to be discharged or removed as a trustee of any of the Trusts.
(d) The Company shall, in its capacity as the trustee of the Trusts, obtain consent of the Debenture Trustee in the event the Trusts intends to issue any security receipts which rank in priority to the Pledged SRs (in terms of payment or otherwise).
(e) The Company hereby agrees and acknowledges that it shall not resign or cease to carry out its functions as the trustee of the Trusts under the Trust Documents until the Final Settlement Date without the prior approval of the Debenture Trustee.
(f) The Company shall ensure that all payment/repayment or reimbursement of any credit facilities (in the nature of advances or otherwise) extended to or expenses incurred by the Company for the Trusts shall be deposited in the Escrow Account and shall be subject to the Security Interest created pursuant to the relevant Security Documents.