Constructive Trust Clause Samples
A Constructive Trust clause establishes an equitable remedy where one party holds property or assets for the benefit of another, even if no formal trust arrangement exists. This clause typically applies in situations involving fraud, mistake, or unjust enrichment, where the legal owner of the property is compelled to act as a trustee for the rightful beneficiary. Its core function is to prevent unjust enrichment and ensure that property is not wrongfully retained, thereby promoting fairness and justice in contractual or fiduciary relationships.
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Constructive Trust. By accepting benefits (whether the payment of such benefits is made to the Covered Person or made on behalf of the Covered Person to any provider) from the Company, the Covered Person agrees that if he or she receives any payment from any Responsible Party as a result of an injury, illness, or condition, he or she will serve as a constructive trustee over the funds that constitute such payment. Failure to hold such funds in trust will be deemed a breach of the Covered Person's fiduciary duty to the Company and the Plan, and will give the Company rights to recover equitable and money damages from the Covered Person.
Constructive Trust. Landlord covenants that all sums paid by Tenant to Landlord and intended for payment by Landlord to a third party (such as, by way of example, taxes and certain elements of CAM Charges) are given to Landlord in trust and shall be applied only for such third-party payments, as and when due or to reimburse Landlord for payment of same.
Constructive Trust. Borrower shall receive, as the sole and exclusive property of Bank, and as trustee for Bank, all monies, checks, notes, drafts and all other payment for and/or proceeds of Collateral which come into the possession or under the control of Borrower (or any of its shareholders, directors, officers, employees, representatives or those Persons acting for or in concert with Borrower) and immediately upon receipt thereof, Borrower shall remit the same (or cause the same to be remitted), in kind, to Bank.
Constructive Trust. 31 7.7 Application of Proceeds of Collateral.....................31 7.8
Constructive Trust. 35 7.6 Application of Proceeds of LaSalle Collateral..............35 7.7 Third-Party Collateral Claims..............................35 7.8 No Custom or Waiver........................................36
Constructive Trust. The proceeds of any sale made by any Shareholder without compliance with the provisions of this Article III, Section 3 and 4 shall be deemed to be held in constructive trust in such amount as would have been due to the Holders if such Shareholder had complied with such Sections.
Constructive Trust. If the Competing Member (or any Affiliate thereof), directly or indirectly, breaches or violates the terms of Section 10.05(a), then, in addition to any other rights or remedies the Non-Competing Member and/or the Company may have against the Competing Member (or such Affiliate) at law or in equity, the Competing Member shall be accountable to, and shall hold in trust for, the Company, any income, compensation or profit that the Competing Member (or such Affiliate) may derive from engaging in such activities.
Constructive Trust. After the occurrence of an Event of Default, Borrower shall receive, as the sole and exclusive property of Lender, and as trustee for Lender, all monies, checks, drafts and all other payment for and/or proceeds of Collateral which come into the possession or under the control of Borrower (or any of its managers, owners, partners, shareholders, directors, officers, employees, agents or those Persons acting for or in concert with Borrower) and upon Lender’s election, immediately upon receipt thereof, Borrower shall remit the same (or cause the same to be remitted), in kind, to Lender at Lender’s office listed in Section 16.9 below.
Constructive Trust. If Synbiotics makes any payment on account ------------------ of any obligations under this Note in contravention of the subordination provisions described in this Section 3, such payment shall be held by the Holder of the obligations under this Note for the benefit of, and shall be paid forthwith over and delivered to, Synbiotics for application to the payment of all Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in full in accordance with the terms of such Senior Debt.
Constructive Trust. The proceeds of any sale made by the University or Centene without compliance with the provisions of this Section 3 shall be deemed to be held in constructive trust in such amount as would have been due to the other party if the University or Centene, as the case may be, had complied with this Agreement.