Common use of Limitations on Powers Clause in Contracts

Limitations on Powers. For purposes of this Agreement, the powers and responsibilities allocated to the Trustee shall be limited as follows. 7.1 The powers of the Trustee shall be exercisable for the exclusive purpose of providing benefits to the Participants and Beneficiaries under the Separate Plans and in accordance with the standards of a prudent man under ERISA. 7.2 Subject to 7.1 and 7.3 and Article FIVE, the Trustee shall diversify the investments of that portion of the Fund of which it has investment responsibility so as to minimize the risk of large losses. 7.3 The Trustee shall not make any investment review of, consider the propriety of holding or selling, or vote other than as directed by the Investment Advisor, any assets of the Fund allocated to a Separate Account in accordance with Article FOUR, except that the limitation imposed upon the Trustee by this paragraph shall not apply to any assets of the Fund loaned by the Trustee pursuant to 4.6, and except, further, that if the Trustee shall not have received contrary instructions from the Investment Advisor of a Separate Account the Trustee shall invest for short-term purposes any cash of that Separate Account in its custody in bonds, notes and other evidences of indebtedness having a maturity date not beyond five years from the date of purchase, United States Treasury Bills, commercial paper, banker's acceptances and certificates of deposit, undivided interests or participations therein and (if subject to withdrawal on a daily or weekly basis) participations in common or collective funds composed thereof and regulated investment companies.