Validation Receipt of Good Subscription Funds Sample Clauses

Validation Receipt of Good Subscription Funds. Procedures and criteria are to be established by the Transfer Agent and approved by the Fund for the purpose of providing assurance that good (collected) funds were received from Shareholders prior to paying out any redemption proceeds (under a Plan account or as a result of one or more specific redemption requests). Such procedures are to deal with: (1) Screening subscriptions to prevent: -forgery, fraud, improper endorsement or other unauthorized use particularly when accepting third party funds; -maintenance of accounts in names other than proper form; funds received where the legal existence or legal capacity of the subscriber is in doubt shall be employed in a temporary investment status until a proper account is established to which prior income will be credited, or until the funds are returned upon determination that no subscriber of legal existence and capacity exits. (2) Establishing and maintaining procedures reasonably designed to assure the clearance and collection of checks which are otherwise properly drawn. In this regard, the Transfer Agent with the approval of the Fund will: -Establish for all parts of the United States the normal number of days required for check clearance and return notice of uncollectability; -Establish redemption amount and clearing time criteria which together place an automatic stop on issuance of certificates, if any, and upon redemption payments until the Transfer Agent reasonably believes that good subscription funds were received. In general, the redemption of a subscription payment received in the form of a check, draft or similar instrument shall not be made until the Transfer Agent has determined, by telephone call to the drawee bank or otherwise, that the deposit has cleared the drawee bank or until fifteen (15) calendar days after the receipt of such subscription payment, in order to permit the orderly clearing thereof. -Provide a means to record and promptly retrieve the status of a subscription received (which may include days remaining before redemptions permitted, name of bank, or other similar information as may be agreed upon.) Shareholder checks returned for insufficient funds or other reasons will be promptly processed for liquidation on or after the date of receipt or notification to the effect that a check is being returned. Returned checks will be cleared promptly and processed through a Returned Check Account in conjunction with the following actions: (1) Place a freeze on the account to prevent ...

Validation Receipt of Good Subscription Funds. Procedures and criteria are to be established by ADM and approved by an Authorized Person for the purpose of providing assurance that good (collected) funds were received from Shareholders prior to paying out any redemption proceeds (as a result of one or more specific redemption requests). Such procedures are to deal with: (1) Establishing and maintaining procedures reasonably designed to assure the clearance and collection of checks which are otherwise properly drawn. (a) ADM shall not honor any redemption payment until it has determined, by telephone call to the drawee bank or otherwise, that the deposit has cleared the drawee bank or until fifteen (15) calendar days after the receipt of such subscription payment, in order to permit the orderly clearing thereof;