Undertakings and Agreements of Custodian Sample Clauses

The "Undertakings and Agreements of Custodian" clause defines the specific obligations and commitments that the custodian must fulfill under the agreement. Typically, this includes duties such as safeguarding assets, following instructions from the client or principal, maintaining accurate records, and reporting on the status of the assets held. For example, a custodian may be required to segregate client assets from its own and to promptly notify the client of any discrepancies. The core function of this clause is to clearly outline the custodian’s responsibilities, thereby ensuring accountability and protecting the interests of the party whose assets are being held.