Common use of Cancellation of Units Clause in Contracts

Cancellation of Units. 15 (A) Subject to the provisions of clause 16 thereof, the Manager may have the exclusive right at any time by notice in writing delivered to the Trustee to effect reductions of the Trust by the surrender of Certificates to the Trustee for cancellation of some or all of the Units represented thereby or by requiring the Trustee to cancel some or all of the Units in existence but in respect of which no person is entered in the Register as the Holder thereof4 and/or in respect of which no Certificate is outstanding. Such notice shall state the number of Units to be cancelled and the amount payable to the Manager in respect thereof. Before giving notice to exercise such right it shall be the duty of the Manager to ensure that the Deposited Property includes or will include cash sufficient to pay the amount payable to the Manager upon such reduction and the Manager shall if necessary realize any Investments forming part of the Deposited Property to raise sufficient cash to meet heavy demands for redemption.