Common use of Default Risk Clause in Contracts

Default Risk. Virtually all purchases and sales of HELVETIA Gold Ounces are made through Finemetal AG, which in turn uses the Swiss federal refinery Argor-Heraeus SA. One or both of these parties might become illiquid and unable to meet its contractual obligations. Thus the advance payments made by AIF could be jeopardised by any such default. Moreover, the funds in the current account held with the Depositary are not subject to separation in insolvency.

Default Risk. Virtually all purchases and sales of HELVETIA Gold Ounces are made through Finemetal AG, which in turn uses the Swiss federal refinery Argor-Heraeus SA. One or both of these parties might become illiquid and unable to meet its contractual obligations. Thus the advance payments pay- ments made by AIF could be jeopardised by any such default. Moreover, the funds in the current account held with the Depositary are not subject to separation in insolvency.