Allocation Limitations Clause Samples
The Allocation Limitations clause sets boundaries on the extent to which certain resources, liabilities, or responsibilities can be distributed between the parties in an agreement. Typically, this clause specifies maximum amounts, timeframes, or specific conditions under which allocations are permitted, such as capping financial liability or restricting the use of shared resources. Its core practical function is to prevent excessive or unfair distribution of obligations or benefits, thereby managing risk and ensuring predictability for all parties involved.
Allocation Limitations. Notwithstanding Section 6.02, special allocations of income and gain or specific items of income or gain may be specially allocated for any Fiscal Year (or other period) as follows:
Allocation Limitations. Specified Account Funds, Spread Account Funds and Holding Account Deposited Funds, pursuant to Section 2.03(d) of the MCA Agreement, may be invested under Reinvestment Contracts with the Bank and WFAL2 only in accordance with the following; aggregate limitations (in addition to any limitations set forth in Reinvestment Contracts or other wise under Reinvestment Contracts): Bank WFAL2 ---- ----- Specified Account No Limit Up to 25% of the amount of funds on Invested Funds deposit in each Specified Account for such Series Spread Account No Limit No Limit Invested Funds Holding Account No Limit 0 Deposited Funds Capitalized terms not otherwise defined in this Schedule A shall have the meanings specified in the MCA Agreement to which this Schedule A is annexed. SCHEDULE B MONTHLY COLLATERAL STATEMENT This certificate is given by the undersigned pursuant to the requirements of Section 3.02(b) of the Fourth Amended and Restated Master Collateral Assignment Agreement dated as of September 1, 2002, among Western Financial Bank (the "Bank"), WFS Financial Auto Loans, Inc. ("WFAL"), WFS Financial Auto Loans 2, Inc. ("WFAL2"), WFS Receivables Corporation, WFS Receivables Corporation 2, Western Funding, Inc., Financial Security Assurance Inc., Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company), as Trustee and Collateral Agent, and Deutsche Bank National Trust Company (formerly known as Bankers Trust Company of California, N.A.), as Master Collateral Agent (the "MCA Agreement"). All capitalized terms used herein have the definitions given for them in the MCA Agreement. The undersigned hereby certifies that the following information is a full, complete and accurate statement as to (1) the Aggregate Commingled Account and (ii) the Aggregate Collateral Value as of ______________.
Allocation Limitations. If the Employer maintains or has ever maintained another qualified plan (other than this Plan and the Prototype Profit Sharing Plan #001), in which any Participant in this Plan is (or was) a participant or could become a participant, this Section IX must be completed. The Employer must also complete this Section IX if it maintains a welfare benefit fund, as defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, under which amounts are treated as annual additions with respect to any Participant in this Plan. IF YOU MAINTAIN SUCH OTHER PLAN(S), FAILURE TO COMPLETE THIS SECTION IX MAY ADVERSELY EFFECT THE QUALIFICATION OF THE PLANS YOU MAINTAIN.
A. If a Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a master or prototype plan (choose either 1 or 2):
1. The provisions of Section 13.2 of the Plan will apply as if the other plan were a master or prototype plan.
2. (On an attachment, provide the method under which the plans will limit total annual additions to the maximum permissible amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.)
B. If a Participant is or has ever been a participant in a defined benefit plan maintained by the Employer (choose either 1 or 2):
1. In any limitation year, the annual additions credited to the Participant under this Plan may not cause the sum of the defined benefit plan fraction and the defined contribution plan fraction to exceed 1.0. If the Employer contributions that otherwise would be allocated to the Participant's Account during such year would cause the 1.0 limitation to be exceeded, the allocation will be reduced so that the sum of the fractions equal 1.0. Any contributions not allocated because of the preceding sentence will be allocated to the remaining Participants under the Plan. If the 1.0 limitation is exceeded, such excess amount will be reduced in accordance with Section 13.1(d) of the Plan.
2. On an attachment, provide the method under which the plan involved will satisfy the 1.0 limitation in a manner that precludes Employer discretion.
Allocation Limitations. Notwithstanding Section 5.1(c), special allocations of Net Income, Net Loss or specific items of income, gain, loss or deduction may be required for any fiscal year (or other period) as follows:
Allocation Limitations