Custodial Receipt Clause Samples
A Custodial Receipt clause establishes the process by which a third-party custodian holds and issues a receipt for assets, documents, or funds on behalf of the parties involved in a transaction. Typically, this clause outlines the responsibilities of the custodian, the conditions under which the receipt is issued, and the procedures for releasing the held items. For example, in a financial transaction, the custodian might hold securities or cash until certain contractual obligations are met. The core function of this clause is to provide security and assurance to both parties by ensuring that assets are safely held and only released according to agreed terms, thereby reducing the risk of default or non-performance.
Custodial Receipt. The Facility Agent shall have received a duly completed and executed Certification from the Custodian;
Custodial Receipt. The Administrative/Collateral Agent shall have received a duly completed and executed Custodial Receipt in respect of each Transferred Contract identified in the related Schedule of Contracts or Schedule of Subsequent Contracts, as the case may be, if any, submitted with the Advance Request for such Advance;